Robert Bryce, Senior Fellow, Manhattan Institute, has released a report that examines the cost impact of Renewable Portfolio Standards (RPS) - although technically different that Ontario's Feed-In Tariff (FIT), Ontario gets more than a passing mention, including citation for WCO's Parker Gallant's work with Glenn Fox.
THE HIGH COST OF RENEWABLE-ELECTRICITY MANDATES ...our analysis of available data has revealed a pattern of starkly higher rates in most states with RPS mandates compared with those without mandates. The gap is particularly striking in coal-dependent states—seven such states with RPS mandates saw their rates soar by an average of 54.2 percent between 2001 and 2010, more than twice the average increase experienced by seven other coal-dependent states without mandates.
Our study highlights another pattern as well, of a disconnect between the optimistic estimates by government policymakers of the impact that the mandates will have on rates and the harsh reality of the soaring rates that typically result. In some states, the implementation of mandate levels is proceeding so rapidly that residential and commercial users are being locked into exorbitant rates for many years to come. The experiences of Oregon, California, and Ontario (which is subject to a similar mandate plan) serve as case studies of how rates have spiraled.
"THE HIGH COST OF RENEWABLE-ELECTRICITY MANDATES" can be read at the Manhattan Research for Policy Research website
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