Electricity Prices Rise Dramatically Under Ohio Renewable Mandates

Electricity prices in Ohio have risen approximately triple the national average since Ohio enacted renewable power mandates in 2008. The sharp rise in electricity prices occurred despite promises during 2008 legislative hearings that renewable power mandates would have little or no impact on electricity prices.

In 2008 the Ohio legislature passed legislation creating the state’s renewable power mandates. Under the mandates, Ohioans must purchase 25 percent of their electricity from designated renewable sources by the year 2025.

Sharply Rising Prices
Since 2008, U.S. electricity prices have risen merely 3 percent. According to the U.S. Energy Information Administration, U.S. electricity prices were 9.81 cents per kilowatt hour in 2008. As of September 2013, the latest date for which EIA published electricity prices when this article went to press, U.S. electricity prices were 10.13 cents per kilowatt hour.

In Ohio, by contrast, electricity prices since 2008 have risen 9 percent. EIA reports Ohio electricity prices in 2008 were 8.44 cents per kilowatt hour. As of September 2013, Ohio electricity prices were 9.19 cents per kilowatt hour.

Directly Traceable to Renewables
The rise in Ohio electricity prices closely tracks the increasing generation of costly renewable power. Wind power comprises nearly all renewable power generation in Ohio. Since 2008, Ohio has quintupled the share of its electricity mix generated from wind power. In 2008, according to EIA, Ohio generated 0.4 percent of its electricity from wind power. As of September 2013, 2.1 percent of Ohio’s electricity was wind-generated.

Greater use of renewable power is a direct and primary cause of Ohio’s rapid increase in electricity prices. During March 2013 testimony before the Ohio Senate Public Utilities Committee, Andrew Ott, senior vice president for markets at PJM Interconnection, which coordinates electricity transmission in Ohio and 12 other states, testified the real cost of providing and delivering usable wind power to consumers is at least double or triple that of conventional power.

“Supporters of wind power and other so-called renewable power sources frequently claim renewable power mandates economically benefit consumers. However, objective data show just the opposite,” said Jay Lehr, science director for the Heartland Institute, which publishes Environment & Climate News.

James M. Taylor (jtaylor@heartland.org) is managing editor of Environment & Climate News.

Comments (12)

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  1. Rick says:

    Trend: The government does not do what it says it will.

    • JD says:

      Because they are incapable, not *only* because they are liars. People need to get the idea out of their head that good government will solve everything.

  2. Tom says:

    Contrary to what appears to be a wide spread belief, governments don’t have special or supernatural powers that they are able to use to do things that to the rest of us are prohibited from doing by the fundamental laws of nature.

    There are three simple yet profound truths that we need to keep in mind:

    We are human beings.
    We live on planet Earth.
    We — and our governments — WILL obey the laws of physics.

  3. Tom says:

    Price inflation is caused by excessive money supply.

    Cost inflation is caused when the amount of energy used to perform particular tasks is made greater — traditionhally by uncontrollable circumstances but more recently by profound stupidity.

    And Obamacare is the only thing that I know about that is based on stupidity that is more profound than most of the “dreamworks” driven renewable energy delusion.

  4. JD says:

    ““Supporters of wind power and other so-called renewable power sources frequently claim renewable power mandates economically benefit consumers. However, objective data show just the opposite,” said Jay Lehr, science director for the Heartland Institute, which publishes Environment & Climate News.”

    Because it is religion, not science.

  5. Sabal says:

    This is what they want for the entire nation!

  6. CRS says:

    All power generation methodologies will find their niche if only government and special interests would let the free market work.
    Example – windmills still pump water on ranches in remotes areas as they cannot be replaced in a cost effective manner. Similarly for solar panels where they are the best available solution at this time. These were practical solutions when implemented. Left to their own devices, people will develop and use the most practical solutions for their need and environment.

    Trying to legislate an ideal solution for one application and environment to replace ideal solutions for other applications and environments will usually be impractical and eventually fail. Meanwhile, waiting for time to pass and “eventually” to arrive costs a lot of tax money and causes problems for people, here and in other countries.
    This is so obvious, that ignoring it displays stupidity and or catering to special interests or polital motivations.

  7. WW101 says:

    You said all that needs saying in your last sentence with regard to all of this industrial wind turbine happy-crappy CSR; “This is so obvious, that ignoring it displays stupidity and or catering to special interests or polital motivations.” The true ‘motivation’ in ALL of this is purely political greed as well as the wind industry’s. So many back-door dealing w/’green’ money being dealt to political pocketing & political agencies by the wind industry. For what? For THEIR greed but also for the wind industry’s greed as well. There is nothing & I mean NOTHING that is positive about erecting 100+,500′,IWT’s among rural, residential areas only 750′ away from the dwelling. It is not just the harm/damage that the IWT’s are PROVEN to do to humans & the surrounding environments/ecosystems alike but also one must not forget the true & outright inefficiencies of IWT’s – period. I find it curious that when these ‘facts’ get outted, the wind industry continues to poo-poo it all while pushing harder for the back-door legislation to be written in their favor & all the while, all the AWEA continues to say or talk about is; “Money for your community & jobs!” What does either one of those lies coming from the politically protected wind industry have to do w/the harms & true inefficiencies? These are YOUR tax dollars being wasted & your rights being legislated away for the sake of securing political power. Something very wrong with all of this. They cannot continue for much longer in covering this up.

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