What happened
A recent report by Always On Energy Research found that local green energy mandates are driving up the cost of renewable energy in New Jersey, Pennsylvania, and Washington, D.C. The report states that rules forcing utilities to buy energy credits from in-state producers account for more than half of the cost of energy mandates in these jurisdictions.
In New Jersey, the in-state solar requirement made up 51% of the state's mandate costs, while in Pennsylvania it accounted for 52%. In Washington, D.C., the requirement made up about 57% of the city's mandate costs. The report also found that the mandates added significant costs to electricity customers, with the average customer in Washington, D.C. paying an additional $775, and customers in New Jersey and Maryland paying $298 and $227, respectively.
The report's findings have been met with criticism from some, who argue that the mandates are driving up electricity costs and favoring in-state producers over out-of-state businesses. West Virginia Attorney General JB McCuskey has even sued the Pennsylvania utility commission, arguing that the in-state requirements violate the Constitution's Commerce Clause.
The issue has also sparked debate over the effectiveness of renewable energy mandates and the impact on electricity prices. Energy Secretary Chris Wright has stated that states with renewable portfolio standards pay 45% more for electricity than states without them. The report's authors argue that the best policy would be to get rid of the mandates entirely, or at least allow out-of-state credits to satisfy the mandates.
