Wednesday, April 11, 2012

That so-called "green energy"

Posted on Wed, Apr 11, 2012 at 3:47 PM

The Montana economy has followed the direction of the nation, with maybe the exception of a couple of our neighboring states. This recession has been the result of many failed governmental policies that attempted to choose winners and losers, beginning with the government policy that everyone should own a home, which brought on the real estate collapse, followed immediately by the banking disaster. In most every case that I know of, every time the government makes a policy decision to benefit a particular industry, the end result is that the American taxpayer ends up being on the hook for the "unintended consequences" of the failed experiment.

This is the situation that we have now with the "green energy" movement and the new wind and solar power policies. On the national front we have the Solyndra fiasco, in which the Department of Energy guaranteed the loan over the better judgment of the agency that oversees the commitment of federal funds. In Montana, we have taxpayer money committed to provide tax credits for energy conservation, alternative fuel, alternative energy and geothermal energy. The total taxpayer money used for these programs adds up to more than $12 million. To add insult to injury, the energy produced by these installations are being forced into the power grid at a cost that is much higher than the power produced by the current facilities that use hydro and fossil fuels. The argument is that wind power is lower cost. But without the federal and state subsidies and lower tax rates, the cost remains significantly higher, and if we calculate the added cost of required back-up generation, the cost skyrockets.

Don't assume that I'm against utilizing the wind or the sun as an energy source. On the contrary, any and all viable sources must be considered. Whatever the source, it must be supplied at a competitive price without extraordinary subsidies or tax considerations.

The cost of energy is a major factor for the recovery and future growth of our state. Consider Montana's economy since deregulation and the resulting run-up on prices. Because of high energy rates, Montana has lost industries and the jobs that they create. Look at the closing of Simpson Lumber, Smurfit-Stone and Columbia Falls Aluminum. Among those hit hardest are our schools. Families uproot and districts lose tax revenue. I am positive that Montanans will welcome alternative forms of energy, but only if the source does not result in higher cost of either electricity or taxes. Alternative energy must compete without special considerations.

Individuals who are elected to represent the consumer must have neither an agenda nor a passion for anything other than the lowest possible costs of energy for the consumer that is supplied by a public utility. Any attempt by the legislature, the Public Service Commission or a government agency to choose winners and losers will only result in inequities and an artificial economy that will constantly require additional support to survive. If allowed, the Montana economy will return to the strong and stable growth that we have enjoyed in the pasta strong economy that provides jobs for our families, a future for our young people and the revenue needed to support those programs that are needed by the citizens of Montana.

Sen. Bob Lake

Public Service Commission candidate


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