Marita Noon

“Once real numbers have come out about renewable energy costs, people are having second thoughts,” reported Maureen Masten, Deputy Secretary of Natural Resources and Senior Advisor on Energy to Governor Bob McDonnell, VA,  while addressing his “all of the above energy” strategy to meet the state’s energy needs.

The real costs of renewable energy are coming out—both in dollars and daily impacts. After years of hearing about “free” energy from the sun and wind, people are discovering that they’ve been lied to.

On Tuesday, August 14, the New Mexico Public Regulation Commission (PRC) approved a new renewable energy rate rider that will allow the Public Service Company of New Mexico (PNM) to start recovering a portion of its recent development costs for building five solar facilities around the state, a pilot solar facility with battery storage, and wind resource procurements. The renewable rider could be on ratepayers' bills by the end of the month—“depending on when the commission publishes its final order,” said PNM spokeswoman Susan Spooner.

The rate rider currently represents about a $1.34 increase for an average residence using 600 kilowatt hours of electricity per month—or a little more than $16 per year. This increase seems miniscule until you realize that this is only a small part of increases to come. PNM needs to recover $18.29 million in renewable expenditures in 2012 and the rate rider only addresses monies spent in the last four to five months. The remaining expense will be carried into 2013.


Marita Noon

Marita Noon is Executive Director of Energy Makes America Great.
TOWNHALL FINANCE DAILY

Get the best of Townhall Finance Daily delivered straight to your inbox

Follow Townhall Finance!