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Cahill: Do the right thing, unless it’s more expensive

April 29, 2010 By max

Tim Cahill acknowledges that building clean energy is good:

“I don’t think it’s the real solution,” he said. “It will make us feel good about ourselves, just like covering every citizen in Massachusetts with health care made us feel good. On paper, and mentally, it’s the right thing to do.”

but only if it’s cheaper than burning fossil fuel:

“It’s an industrial-sized plant in Nantucket Sound and in my mind, if it doesn’t lower the cost of electricity and energy, then I can’t support it, because, at the end of the day, it makes us less competitive,” Cahill said.

Source: Boston.com

Never mind that building Cape Wind would help make Massachusetts a leader in clean energy (thus making us more competitive to companies that support environmental improvement and energy independence) and reduce environmental costs.

It always amazes me how free market proponents fail to understand (or acknowledge) that investment is as valid a strategy for economic improvement as cost cutting.

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Comments

  1. trickle-up says

    April 29, 2010 at 12:41 pm

    with Charlie Baker for the “give me my free lunch” vote.

    <

    p>Unfortunately it’s a pretty big bloc.

  2. stomv says

    April 29, 2010 at 2:02 pm

    It doesn’t lower the price of electricity in his mind?  What the hell does that mean?

    <

    p>Look, the economics are pretty simple for ratepayers.
    1.  Because Cape Wind isn’t owned by a utility, a utility isn’t obligated to buy the electricity — and will only do so if it’s cheaper than alternatives.

    <

    p>2.  Because the state has an RPS requirement forcing the power companies to serve up renewable electricity at a quantity increasing by 1% of the total power each year, the utilities have got to buy renewable power from somebody — and have to outbid utilities located in other states with RPS requirements.  The demand for renewable energy must increase each year, by law.  If supply isn’t increased, then it’s a guarantee that the price of RPS compliance will increase.  Cape Wind is helping to prevent an increase in electricity prices because it’s helping to make sure that the power companies can comply with the RPS standard within Massachusetts.

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