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: St. Cloud

    Location: St. Cloud

    Sign up HERE! Courtyard by Marriott St. Cloud 404 West Saint Germain Street St. Cloud, MN, 56301 Please join Center of the American Experiment on Tuesday, July 21 for breakfast with Center policy fellow and education expert Catrin Wigfall as she explains K-12 education in the state and its persistent disparities despite decades of increased spending. Following her presentation, Catrin will lead a Q&A session. 7:30 AM Check In and Breakfast 8:00 AM Presentation 9:00 AM Conclude   Catrin Wigfall is a Policy Fellow at Center of the American Experiment. She is also the director of EducatedTeachersMN and EmployeeFreedomMN. Catrin’s…

    Register Now
  • Kristi Noem: The Courage to Reject a Shutdown

    Location: Online

    Sign up HERE! Join us Wednesday, July 8th for an interview with South Dakota Governor Kristi Noem over Zoom. In response to COVID-19, Noem defied the norm of a statewide shutdown and let South Dakotans choose for themselves what safety precautions to take. Tune in to this live online event to hear how Governor Noem preserved her state’s economy while still keeping citizens safe. Wednesday, July 8th at Noon CT Sign up HERE!  

    Register Now
  • Morning in Minnesota: Marshall

    Location: Marshall Golf Club

      Sign up for this event HERE! Please join Center of the American Experiment on Thursday, July 16 at Marshall Golf Club for a breakfast with Center economist, John Phelan, as he discusses Minnesota’s economic future. Following his presentation, John will lead a Q&A session. 7:30 AM Check In and Breakfast 8:00 AM Presentation 9:00 AM Conclude John Phelan is a graduate of Birkbeck College, University of London, where he earned a BSc in Economics, and of the London School of Economics where he earned an MSc. He worked in finance for ten years before becoming a professional economist. He…

    Register Now