11-27-2012, 10:13 AM
quote:
Originally posted by kalakoa
ALL energy is artificially priced, subsidized, and laden with "policy taxation". There is no "PV equivalent rate cost" unless all sources are subsidized to the same degree. Ideally, eliminate both the artificial subsidies and the taxes that fund them; let the market decide.
You are totally wrong here. It may be an argument that ACC is a subsidy but it technically has been removed by the state, so it no longer exists (it will take awhile for the contracts to expire). The biomass fuel plant at Pepeekeo gets no subsidy whatever, is being financed by private investors and will have a rate cost tied to industry rates which is about 15 to 20 cents per kw-hr, including their profit. The hydroelectric, while being small, is the same. No government subsidy, no extra utility fees, the plants were put in by private investors (sugar cane plantations) and the industry rate for hydroelectric is about 8 to 11 cents per kw-hr, with profit. Geothermal is the same. There is no government subsidy for it, no extra utility fees, the plant is put in place by private investors, and right now, the 8MW non-ACC rate is 10 cents per kw-hr, with profit. Geothermal stands out from all the other indigenous alternative energy sources as the only one paying royalties to the government.
In fact, the only indigenous alternative energy sources being massively subsidized by government tax and utility fees are solar, wind and biodiesel. And the reason HELCO/HEI heavily backs these is they all hold the potential to raise rates. If the subsidies on solar are heavily reduced, then that means the solar farms will cost much more to install and HELCO will pass that on with rate increases. Making these 3 alternative energies top priorities will lead to higher electric rates.
*Japanese tourist on bus through Pahoa, "Is this still America?*