SHARE NEW ENERGY COSTS, BENEFITS

Share costs of entering new era
Editorial, July 6, 2010 (Boston Globe)

"…[A]ll energy consumers must share in the transition costs [of increased reliance on renewable energy] — even those big enough to negotiate their own electrical rates.

"Giant retailer Walmart is challenging the deal National Grid has struck to buy premium-priced power from Cape Wind, because the utility intends to spread the costs of buying that power from the wind farm across all its customers. That includes Walmart, which buys its electricity from a different supplier and only uses National Grid for transmission."

Consumers have to subsidize the New Energies because taxpayers subsidize the Old Energies. (click to enlarge)

"But neither principle nor the law is on Walmart’s side…[B]ig electricity customers often buy their power from companies other than utilities such as National Grid. The Green Communities Act of 2008 specifically requires the utilities to bill all their customers, including those that use a utility only as a delivery service, for the cost of renewable energy. Without such a requirement, a utility’s residential and small-business customers would bear too much of the cost of renewable projects…

"…Walmart and all power consumers in the state will benefit in the long run as renewable sources like wind help hold down the highly volatile price of natural gas, which generates much of the state’s electricity. Fluctuations in the price of natural gas have been responsible for a tripling of utility bills in the past decade…[T]he fuel for the 130-turbine Cape Wind project comes at no cost at all — forever."

When costs are levelized, wind is among the cheapest sources of electricity generation. (click to enlarge)

"As a corporation, Walmart is famous for pinching pennies, and its efforts to express that philosophy through a more deliberate approach to lighting, ventilation, and packaging have won praise from environmental groups.

"…[N]ot all worthwhile environmental initiatives will save money in the short term. Bringing alternative sources of power into operation will involve some expense on the front end. Over time, everyone will benefit from the change, so its costs must be divided up accordingly."