HARRISBURG, Pa., June 26 /PRNewswire-USNewswire/ -- Current legislation pending before the Commonwealth's legislative houses would mandate a 1250% increase in the solar requirements to be provided by electric utilities over the next 15 years. The price tag for this additional requirement for power distribution companies could conservatively increase generation costs by $172 million and as much as $426 million.
"While we laud the Legislature and Governor for looking at greener energy solutions," says Michael Love, President of the Energy Association of Pennsylvania, an energy industry trade group representing the Commonwealth's PUC-regulated electric companies, "unfortunately, right now their efforts are very costly to today's rate payers."
"The cost of solar energy, at this point in time, is the most costly energy source we have," said Love. "If our government wishes to increase the solar energy generation resources then the government must commit to greater utilization of solar in its own facilities to help grow this emerging technology."
Using the figure often used by solar advocates of 50 cents a KWH, the solar generation legislative mandate could yield increased electric consumer rates of up to $426 million over the next 15 years.
A study by the Energy Association of Pennsylvania found that using the current price being paid for solar in New Jersey, 22 cents a KWH, would increase generation rates by an additional $172 million. Current generation costs, using existing energy sources, are in the 4 to 7 cents per KWH range.
A Carnegie Mellon study, released in the Spring of 2007, concluded that solar energy has costs five to ten times higher than costs of other low carbon technologies like wind. "If we are trying to hold down the price of electricity, and ultimately the cost to consumers, why would government officials and legislators mandate the most expensive energy choice?" Love said.
In addition, Senate Bill 715 and House Bill 1203 would increase electric rates without helping create a market for solar power to thrive. "Government mandates of market creation don't work, based on past historical examples such at the PURPA or Public Utility Regulatory Policy Act of 1978. These types of provisions commonly just add cost to consumers with no assurance of increased solar markets," Love said.
Energy Association of Pennsylvania
CONTACT: J. Michael Love, President & CEO of the Energy Association of
Pennsylvania, +1-717-901-0600, mlove@energypa.org
Web site: http://www.energypa.org/
