fbpx

Latest Posts

Home

Facebook

Twitter

Search
About

If Efficiency Is No Longer Cost Effective, We Shouldn’t Subsidize It

The Minnesota Department of Commerce released a study on Tuesday saying that electric and natural gas utilities could continue to meet their current efficiency mandates, but that it will become more expensive to do so over time.

Under the Next Generation Energy Act, passed in 2007, electric utilities are mandated to reduce their electricity sales by 1.5 percent annually. Electric utilities have reached this goal, but according to the Commerce report, the days of easy, low-cost energy savings are nearing the end.

In order to keep up the energy savings, utilities will have to pay higher “incentives” and subsidies to get consumers to adopt more energy efficient technologies. The problem is, utility companies will be reimbursed for these subsidies, and all Minnesotans will end up paying for energy efficiency subsidies for a few who cash in on them.

I am all for free-market energy efficiency. If you can save money by shutting off the lights when you leave, or purchase a more efficient refrigerator when your old one no longer works, that’s all to the good. But efficiency should be its own reward, and the savings realized by Minnesota families should be the primary incentive for becoming more efficient.

Comments

Subscribe

Categories

Upcoming Events

  • Morning in Minnesota Breakfast: St. Cloud

    Location: Coyote Moon Grille 480 55th Ave SE, St. Cloud, MN 56304

    Please join Center of the American Experiment on Wednesday, October 16that Coyote Moon Grille for breakfast with Center policy fellow and energy expert, Isaac Orr. Following his discussion of his new report, “Doubling Down on Failure,” Isaac will be joined by a panel of local leaders for a conversation about renewable energy standards in Minnesota. Wednesday, October 16, 2019 Coyote Moon Grille, 480 55th Ave SE, St. Cloud, MN 56304 7:30 AM Breakfast & Check-in 8:00 AM Presentation 9:00 AM Conclude Free, RSVP Here

    Register Now
  • Morning in Minnesota Breakfast: Mankato

    Location: Mankato Golf Club, 100 August Drive, Mankato, MN 56002

    Please join Center of the American Experiment on Thursday, October 17that the Mankato Golf Club for breakfast with Center economist, John Phelan, as he discusses Minnesota’s economic future. Thursday, October 17, 2019 Mankato Golf Club 100 August Drive, Mankato, MN 56002 7:30 AM Breakfast & Check-in 8:00 AM Presentation 9:00 AM Conclude Free, RSVP Here

    Register Now
  • Morning in Minnesota Breakfast: Alexandria

    Location: Alexandria Golf Club 2300 North Nokomis Northeast Alexandria, MN 56308

    Please join Center of the American Experiment on Wednesday, September 25th at the Alexandria Golf Club for breakfast with Center policy fellow and education expert, Catrin Wigfall, as she explains the Center’s “Great Jobs Without a Four-Year Degree” project. Following her presentation on workforce development issues, Catrin will be joined by a panel of local leaders to discuss how Alexandria can better attract and retain young talent. Wednesday, September 25, 2019 Alexandria Golf Club 2300 North Nokomis NE, Alexandria, MN 56308 8:00 AM Breakfast & Check-in 8:30 AM Presentation 9:30 AM Conclude Free, RSVP Here

    Register Now