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Illinois Electricity: Subsidies, Mandates, Inflation

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- January 7, 2025

“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.…

Rising Electricity Rates under Biden (Texas wholesale up 200%)

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- October 30, 2024

“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.…

Energy ‘Transition’: It’s a Federal Bribe (versus consumer demand)

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- August 28, 2024

“If Americans want to keep their gasoline-powered cars and their large refrigerators … be able to afford travel across their states and country … avoid European—and California—style energy poverty, their only hope is to convince politicians to end subsidies for renewables and all other forms of energy.”

It is common for advocates of renewable energy to complain about the subsidies given to fossil fuels. “We have heard testimony,” stated U.S. Senator Sheldon Whitehouse, “about the threat climate change poses to entire sectors of our economy.”

So, what are we, the federal government, doing to protect against these threats?  Actually, we are subsidizing the danger.  As we’ll hear today, the United States subsidizes the fossil fuel industry with taxpayer dollars.

Joining Sen. Whitehouse in this vein are groups like the International Monetary Fund, The Future is Electric, and the Natural Resources Defense Council.…

The Government-Imposed Cost of Electricity in Texas

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- July 17, 2024

Storm Uri: The Supreme Court’s Decision (Part 3)

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- January 26, 2024

Texas Defeats Electric Competition (Part 2)

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- January 25, 2024

Storm Uri: The PUCT’s $26 Billion Electricity Tax (Part I)

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- January 24, 2024

Energy Emergency Alert! ERCOT’s Close Call of September 6 (Part 2)

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- September 13, 2023

Energy Emergency Alert! ERCOT’s Close Call of September 6 (Part I)

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- September 12, 2023

Wind Fails Texas Again

By <a class="post-author" href="/about#bill-peacock">Bill Peacock</a> -- June 26, 2023