A Idiot

One of Bob Schaffer's bloggers has taken us to task (breaking his no name-calling pledge in the process) over our supply and demand analysis. Their primary argument is that electricity prices are regulated, therefore supply and demand don't apply.

Were it true that prices were fixed by the government, they would be right. However they are not. When the electric utilities want to change prices to respond to market forces (such as supply and demand), they apply to the PUC for a rate adjustment, and in almost every case the PUC approves it without question. So the price may not swing wildly on an hourly basis (thank goodness) but it does change in response to market forces.

But take a look at alternative energy and you'll find that those rates are not subject to the PUC. From Xcel Energy's Windsource signup page: "The Colorado Public Utilities Commission has approved the use of market pricing concepts for Windsource rather than the regulated rate methods." In other words, with renewable energy comes a free-market pricing model.

So if you're a lover of the free market and Colorado's scenic environment and you want to help curb global warming (the existence of which Bob Schaffer's supporters at the Independence Institute continue to deny, even as Bush himself has acknowledged it is a serious, manmade problem that needs addressing) then you should look at Windsource and other renewable energy programs.

Does it cost more? For now, yes (about $14/mo for the average electric bill). Wind farms aren't built for free. But we are happy to pay a little more in the short term to help build the renewable electricity infrastructure. It creates jobs, helps the environment (not just global warming but things like acid rain and asthma-causing soot pollution), and reduces our dependence on fossil fuels. When the infrastructure is built out, costs will come down. And programs like Windsource are opt-in. Can't afford the $14? That's OK, don't pay it.