Saturday, January 26, 2013

Report: Costly state energy policies to raise California power costs by 33 percent

You get what you pay for:

“This perverse effect inexorably will be reflected fully in rising rates paid by consumers, whether directly or indirectly,” Zycher continues.

The costs to California consumers in 2020 will rise by more than 13 percent as a result of the renewable fuel mandate. However, the report notes that even without the mandate, state power rates would rise by nearly 20 percent due to “various capital investments driven by both economic and regulatory factors,” and because of the state’s cap-and-trade program.

All of these policies taken together will cause power rates and costs to rise nearly 33 percent between now and 2020, according to the report.

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