Gramm: End Wind Subsidies, Let Natural Gas Flourish

Wednesday, 26 Dec 2012 10:21 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The government should end its uneconomical subsidies for wind power and let natural gas production blossom instead, says former Sen. Phil Gramm, now a visiting scholar at the American Enterprise Institute.

“Federal subsidies for new wind-power generation will end on Dec. 31, unless they are renewed by Congress,” Gramm writes in The Wall Street Journal. “For the sake of our economy and the smooth operation of the energy market, Congress should let the subsidies lapse. They waste taxpayer money, subvert the allocation of capital, and generate a social cost many times the price tag of the subsidies themselves.”

Natural gas is the answer instead, he says. “If unimpeded, the expanded use of cheap natural gas to generate electricity will raise living standards and attract millions of new industrial jobs back to our shores. A vote to stop wind subsidies from being extended is, therefore, a vote for cheaper, more reliable power, higher living standards, reindustrialization, and fiscal sanity.”

Government wind subsidies cost $52.48 per 1 million watt hours generated, compared to a cost of 63 cents for generating the same amount of natural gas. “But the cost to taxpayers is only part of the problem,” Gramm says.

“Subsidized, wind-generated electricity is displacing other, much cheaper sources of power. The subsidies are so high that wind-power producers can pay utilities to take the electricity they produce and still make a profit.”

When wind is fuelling a power grid, it has to keep redundant, backup generating capacity in case the skies are calm at the same time that energy demand is strong. “Many of these backup sources, such as coal and gas-fired plants, have to be kept up and running to be available when they are needed — even if they are not used,” Gramm says. “This partially offsets the environmental benefits of wind power.”

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Vikings Bar Peterson from All Team Activities

Wednesday, 17 Sep 2014 06:09 AM

After a day of public pressure from angry fans and concerned sponsors, the Minnesota Vikings have reversed course and pl . . .

New York Man Arrested for Trying to Aid ISIS

Wednesday, 17 Sep 2014 05:57 AM

An upstate New York man accused of plotting to kill members of the U.S. military and others faces new charges that he tr . . .

Bill Would Limit Transfer of Military Gear to Police

Tuesday, 16 Sep 2014 22:30 PM

Two members of Congress are trying to stop the military from arming local police forces with high-caliber weapons, grena . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved