Update on the States

Maryland

Offshore wind energy is so expensive that even the Democratic-controlled State Legislature is balking at the price tag of Maryland Governor Martin O’Malley’s (D) proposed “Maryland Offshore Wind Energy Act.” The legislation would force the state’s investor owned utilities to minimum 20-year contracts for 400 megawatts to 600 megawatts of offshore wind power. Governor O’Malley’s office estimates that the legislation would cost ratepayers about $1.50 a month, but this projection is based on unrealistically optimistic assumptions. Independent analyses peg the costs at up to $9.00 a month. The disparity in estimates has elicited a negative response from O’Malley’s own party in the legislature: the Washington Post reported this week that two Democratic lawmakers key to the bill’s prospects have suggested they need more time to vet the legislation than is left in this year’s session.

Kentucky

By a bipartisan vote of 28 to 10, the Kentucky State Senate last week passed a resolution exempting the coal industry from EPA regulation, according to the AP. The non-binding resolution, which was introduced by Sen. Brandon Smith (R), is now before the House of Representatives.

Colorado

The Colorado Public Utilities Commission held hearings last Friday on Xcel Energy’s request to lower its “Solar*Rewards” subsidy for installations of photovoltaic panels. This year, Xcel ratepayers are projected to pay 4 percent of total sales (about $100 million) on Solar*Rewards subsidies that will result in .3 percent of generating capacity. The Colorado Solar Energy Industry Association claims that the loss of the subsidy would cause a 75 percent contraction in the state’s solar industry.

Tagged as: Colorado, Environmental Protection Agency, Kentucky, Martin O'Malley, Maryland, nullification, offshore, Public Service Company of Colorado, Public Utilities Commission, wind power, Xcel Energy