Gov. Patrick's wind energy subsidies are a risky bet
Locking in prices is supposedly desirable because it will protect NStar customers from price volatility. Yet we are in the midst of a natural gas boom that promises to revolutionize America's energy picture. Natural gas prices have plummeted from near $5 per MMbtu last summer to around $2.60 per MMbtu. According to the EIA, the energy equivalent of $3 natural gas is $18 oil. If our current prices are high, why would we want to lock them in?
March 3, 2012
by Peter Wilson
in Cambridge Chronicle
Cambridge - Governor Patrick recently approved a $17.5 billion merger between NStar, the utility that serves Cambridge, and Northeast Utilities of Connecticut. Two conditions were placed on the deal: the new company must purchase 27.5% of the output of Cape Wind, the wind farm in Nantucket Sound. Secondly the utility must freeze its rates for the next four years, and distribute a one-time rebate of $21 million to customers.
Patrick has received widespread praise for creating a supply of renewable energy and protecting ratepayers. Before opening the champagne, consider first that that $21 million rebate works out to... [continue via Web link]