Posts posted by Doug
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In order to promote the growth of renewable electricity sources, such as wind and solar, the federal government has given them special tax incentives. Chief among these are the production tax credit (PTC), which has been used primarily by wind generation and awards a substantial tax credit for every megawatt-hour (MWh) produced; and the investment tax credit (ITC), which is primarily used by solar electricity generators as a credit against construction costs. PTCs and ITCs can amount to more than one-third of the cost of building and operating wind and solar facilities.
These tax incentives were intended by Congress to support technology that was too expensive in its early development. Over time, these tax credits accomplished their goals, as wind and solar power have increased from just over 4% of the nation’s electric generating capacity in 2010 to nearly 13% today (9.5% for wind and 3.5% for solar). Although initially a temporary program, Congress has extended these subsidies several times in recent years as they were about to expire. The PTC for wind is now set to expire at the end of 2020, but renewable energy advocates are pushing to extend them again. The following are reasons renewable subsidies should not be extended.
Over $100 billion has already been spent on renewables subsidies.
Renewable energy resources—primarily wind and solar—have received subsidies through the tax code since 1979, most of which have occurred in the last decade. Through 2018, these subsidies amounted to more than $100 billion. This amount is far in excess of federal assistance received by other electricity sources. And for perspective, this exceeds the combined 2020 budgets for the Department of Homeland Security, the Department of Energy, the Department of the Interior, and the Environmental Protection Agency.[ii]
Tax Subsidies for Renewable Energy (2019 $Billion)[iii]
Subsidized renewables have distorted the electricity grid.
Wind and solar power do not provide the same value to the grid as conventional electricity sources. In addition to not operating on-demand, they provide little of the capacity value that is needed to maintain long-term reliability and cannot be relied on to provide the essential reliability services the grid needs to maintain reliability. Instead, they rely on other electricity generators to provide the services they cannot, thus “imposing” those costs on other generators and the grid. Though the wind and solar facilities do not pay these costs, ratepayers do.
A Texas heat wave in August 2019 provides a good example of how renewables can distort electricity grid operations. In the prior ten years, wind capacity had grown from 10% to 26% of capacity in the Texas power market (ERCOT).[x] The low marginal cost of subsidized wind power depressed market prices for electricity to the point where over 5,000 MW of conventional generation chose to retire in 2018 rather than continue losing money. With electricity demand reaching record levels, these retirements combined with an unpredicted drop in wind generation to force ERCOT to enact emergency procedures to avoid blackouts. Although blackouts were avoided, electricity prices that were under $20 per MWh in the morning of August 13, 2019 rose to $9,000 per MWh in the afternoon.[xi]
Federal subsidies for renewables have not lowered consumer electricity costs.
The ITC and PTC subsidies have lowered out-of-pocket costs for renewable project developers but have not led to similar savings for electricity ratepayers. This is evident when examining states that have enacted renewable portfolio standards (RPS) that require utilities to procure renewable power. A study from the Energy Policy Institute at the University of Chicago examined the impact RPS programs had on electricity rates across the country and concluded they led to higher electricity rates. Rates increased by 11% when the share of renewable generation increased by 1.8%, and by 17% when the renewable share increased by 4.2%.[xii] According to the study, “These cost estimates … likely reflect costs that renewables impose on the generation system, including those associated with their intermittency, higher transmission costs, and any stranded asset costs assigned to ratepayers.”
A large portion of subsidies are sent overseas.
Much of the wind and solar power deployed in the United States is owned by foreign firms, and the tax credits that these power projects generate are collected by international corporations. One study found that of the $24.5 billion in PTC credits awarded between 2007 and 2016, just 15 companies received three quarters of those credits, and 42% of that total ($8.2 billion) went to seven overseas firms.[xiii]
There is no longer a compelling reason to extend federal subsidies for renewables.
Continued subsidies are no longer needed to support a fully developed renewables industry. After four decades of federal subsidies and state mandates, the wind and solar industries are mature and able to compete on equal footing with conventional sources of electricity. As AWEA said, “the PTC has been successful …” Or as we put it, enough is enough.
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5 minutes ago, Tommcat said:
3 more shootings in my city this weekend, including the police being shot at.
No ARs or legal gun owners involved.
If only the current laws already in place were enforced to the full extent.
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11 minutes ago, racinfarmer said:
I think we are going to try to make it to Angell Park when the mods are there. I have family in Sun Prairie, Oconomowoc, and Waunakee.
👍
Angel park is a tight track if you haven't been there. Outagamie (Seymour Wisconsin) runs on Friday night that's a wide 1/3 mile track. Normally gets dry slick so they don't wreck much.
Hit up Fastsledder (Jim) if you want some insight on some of these tracks.
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Edited by Doug
6 minutes ago, Jimmy Snacks said:Lajoie would be good or maybe give Austin Hill a shot…he drives for RCR in Xfinity and he has shown that he can win at that level.
Austin Hill would be good also. Don't take any shit. Can't remember but who did he deck last year.
Relaxing up Nth with the neighborhood pets.
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34 minutes ago, Jimmy Snacks said:
I agree…Reddick had wins in RCR equipment as well. Also it was ridiculous and a bad look when both Austin and RC were claiming that Cindric intentionally hooked him as Shrub is celebrating in Victory Lane.
Agree Kyle's 3rd win in his first year with the team. Richard needs to swallow his pride and look at performance. Let Austin do reality shows and rodeos. Lajoie didn't have a good showing for Hendrick but seems to have the talent. Put him in the car.
Austin's performance has diluted the significance of the #3. Not a bad guy just don't have the talent needed.
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2 hours ago, Jimmy Snacks said:
Austin Dillon and his PopPop got no joy with this one…
I think Richard's family pride is in the way of good judgment with Austin as far as driving talent. Prior to entering Xfinity or Cup Richard brought on Dale McDowell on the dirt latemodel side. He coached both Austin and Tye in dirt latemodels to help them learn car control. Now you look at Kyle Busch in the RCR car compared to Austin. A noticeable difference. Just don't seem either of Richard's grandkids as top tier drivers. Sorry
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Trump Admits He Conspired to Raise Oil Prices
in Current Events
Oh boy. Thanks closet Joe