Some Hot Air in the Green Economy
Speaking of the suspicious structure of the “new economy”… the economics of wind have come under some scrutiny, lately. Specifically, the project being questioned is Portsmouth’s windmill:
Because the setup was considered net metering under state law, National Grid never negotiated a power purchase agreement with Portsmouth. An agreement would have been reviewed by the PUC, which could have rejected the selling price.
Instead, state law required National Grid to buy the power at a prescribed rate that is higher than what the utility pays for power from other sources, such as natural gas-fired power plants.
Portsmouth sells its power to National Grid at the exact price the utility charges the town and other customers in the same rate class. It’s a retail rate, not a wholesale rate. The bundled price includes the actual cost of energy, along with other charges for distribution, transmission and transition. …
That left the town a net income for the period of $257,075 — money it could use to pay its energy bills or any other line item in the municipal budget.
In other words, the state government forced the energy company to pay extra money for Portsmouth’s wind energy, which it will pass on to other clients, thus shifting money from the private sector into the Portsmouth government’s coffers. One suspects that much of the emphasis on “green technology” — especially that emphasis coming from the public sector — is built around similar schemes.