“… our legislative leaders think that the answer to overcoming renewable subsidies is to give subsidies to everyone else.” (- Bill Peacock, below)

Subsidized wind and solar power–dilute, intermittent, and fragile–wounded the Texas grid (ERCOT, covering 90 percent of the state), resulting in the greatest blackout in the history of U.S. electricity in February 2021. With the tricked grid continuing to attract inferior energies, Texas politicians have tried to wrong a wrong into a right. Instead of halting the cancers in the system (wind, solar, and battery investments), the Republicans are now subsidizing new capacity from natural gas technologies as well as nuclear fission.

New nuclear plants are a real stretch, but Texas can lose a few billion taxpayer dollars, right? The bad news from Texas is that the legislature is planning to increase spending by $48 billion with only $6 billion going to property tax relief.…

Ed. Note: Four years ago, Storm Uri caused Texas’s centrally planned wholesale electricity market (ERCOT) to buckle, vindicating warnings about the state’s wind/solar reliance. The mainstream media implicated natural gas instead, failing to explore the why behind the why. Rather than deregulation, Texas has chosen to add wind, solar, and batteries, while subsidizing natural gas plants to counter intermittency. This duplicated grid is now driving rates up in a state that could have relied on surplus natural gas instead.

It was not so much the story of freak weather triggering a market failure writ large. It was a classic application of the political economy of government intervention: the seen and the unseen, expert/regulatory failure, and unintended consequences.

Don Lavoie, a preeminent thinker in the field of market-versus-government planning, once warned:

If the guiding agency is less knowledgeable than the system it is trying to guide—and even worse, if its actions necessarily result in further undesired consequences in the working of that system—then what is going on is not planning at all but, rather, blind interference by some agents with the plans of others.”

“If Illinois wants an affordable and reliable grid, the answer is to end subsidies and mandates for all forms of generation. And to eliminate regulations that are taking the most affordable and reliable fuels out of the generation mix. Nothing else will work.”

Electricity prices are climbing in Illinois. As is the public’s concern about them. To address this, Governor JB Pritzker and governors from four other states recently asked the PJM Interconnection to do something about the escalating rates.

While the concern is widespread, there is little consensus over the cause of the higher prices. Some blame fossil fuels. Others the PJM capacity market. And others a lack of investment in battery storage. Most agree, though, that government intervention is needed to fix the problem.

However, a closer look shows that government intervention is the source of the problem.…

“Whether it is the unprecedented subsidies for renewable energy or the unprecedented war on American energy, the Biden administration’s policies are behind the increase in America’s electricity prices.”

During the first three years under Biden vs. last three under Trump, average wholesale electric prices in the seven U.S. independent or regional service areas have increased by 72%. Retail prices are also higher. The average 2024 U.S. residential rate to date is 24% higher than in 2020. For all end users—residential, commercial, industrial, and transportation sectors—prices are up 23%.

This rate surge reflects the massive renewable energy subsidies authorized in the Inflation Reduction Act of 2022, signed by President Biden, that tripled the outlay of such federal largesse. Another factor is the administration’s natural gas policies, which banned imports of Russian oil, liquefied natural gas, and coal; joined with the European Commission to reduce Europe’s dependance on Russian oil; and put a pause on LNG permits.…