There have been a lot of estimates of how much cap and tax, via the Waxman-Markey bill, will increase electricity prices.  Some of that increased cost will come from a national Renewable Electricity Standard (RES) of 15 percent by 2020.  But estimates can be challenged.  The best illustration would be to see what rates actually are in similar conditions.

The Taxpayers Network has published a 50-state comparison (pdf),  of results from 2007 that does just that.  It’s a real-world comparison between rates in states that have similar renewables standards and states that don’t.

From Table 47 of the report, look at Waxman’s California and Markey’s Massachusetts, both of which have similar restrictions, and compare them to West Virginia and Indiana, both of which do not.  The results, in cost per kilowatt hour:

The Commercial, Industrial, and Residential rates for electricity in cents per kilowatt hour are as follows:

Waxman’s California              12.82 c/kwh     9.98 c/kwh   14.42 c/kwh

Markey’s Massachusetts      15.20 c/kwh    13.30 c/kwh   16.23 c/kwh

For comparison,  States from our industrial heartland:

West Virginia                  5.85 c/kwh       3.95 c/kwh     6.73 c/kwh

Indiana                          7.29 c/kwh       4.89 c/kwh     8.26 c/kwh

I’ve highlighted the residential rates.  Quite a difference, isn’t there?  And that’s under current restrictions.  Waxman-Markey will impose other, more severe conditions.  Imagine what your rate will look like then.

Advertisements