Saturday, September 13, 2008

Wind Energy

My letter to the Wichita Eagle today:

Wind Energy and the Consumer

Recently I received a notice in the mail that Westar Energy was holding hearings about a potential 15% rate increase. I understand that costs in the industry are on the rise. Raw materials for infrastructure improvements, expensive government mandates, and rising fuel costs are certainly taking a toll on the bottom line for Westar Energy. However, one thing in the Westar notice regarding the reason for rate increases bothered me: Improving technology for renewable energy resources, particularly wind.

I am among a growing number of Americans that are skeptical about the man-made impact on climate change. I do not believe there is sufficient evidence to point out that our behavior is causing the changes many environmentalists tend to blame on man. So forcing me to pay higher electric rates due to unproven theories about our impact on the environment seems wrong.

I do support others in their wish to support such theories. Therefore, I think it should be those people that pay higher rates for electricity since it is their beliefs that are driving costs higher. So instead of charging all customers higher rates, only charge those customers more that want to use alternative energy sources. This policy could easily be implemented by sending all ratepayers a ballot so they can decide what energy source they prefer to use. If a ratepayer does not send in the ballot, Westar should assume they want to pay the higher, alternative energy rate.

This mechanism would fully fund alternative energy if customers truly want it. If Westar finds ratepayers are not selecting alternative sources for their energy needs, then they should stop making investments in those sources. If customers want more alternative energy, they will be collecting more revenues to invest in those sources.

A market-based solution to part of this rate increase makes perfect sense. People that believe man is responsible for climate change can pay for it and the rest of us that are skeptical can continue to enjoy lower energy bills.

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