While it’s a foregone conclusion that a climate realist will join the Louisiana Public Service Commission in 2025, why not start with some wind behind the sails?
The realists are Republican state Sen. Jean-Paul Coussan and GOP former state Sen. Julie Quinn. Both have described themselves as advocates of an all-of-the-above, let-the-lowest-priced-reliable-energy-source-win model for rate determination. By contrast, political newcomer Democrat Nick Laborde takes a climate alarmist approach favoring renewable sources.
Disturbingly, he vouches for returning to a net metering framework that essentially has almost every ratepayer subsidize the lifestyle choice of a few as a method to increase the proportion of renewable energy in the produced portfolio. This would lead to much higher costs for consumers because then the utility forced to buy renewable power from a customer at retail has to build reliable redundancy into the system, such as adding a peak combined-cycle natural gas plant, and charge consumers for it (or, impossibly both physically and financially, building out battery capacity).
With renewable energy sources realistically far more expensive than fossil fuels, it’s important for the PSC, and Louisiana policy-makers in general, not to fall prey to hysteria derived from faith in catastrophic anthropogenic global warming that is the stock in trade of alarmists. By holding the line on rates, which would discourage utilities from more than dabbling in wind and solar renewable sources in particular (hydroelectric and geothermal are much more reliable but naturally very limited in total capacity) until they find ways to make these much more cost-effective (sadly, already tens of billions of dollars in annual subsidized costs wasted), consumers will be guaranteed the lowest possible prices.
One excellent avenue by which to do this is by imposing through PSC regulation, or even a step higher on the food chain of policy-making through statute by the Legislature, the model language offered by the invaluable American Legislative Exchange Council in a regulation or law. What it calls the Affordable, Reliable and Clean Energy Security Act that emphasizes lowest-cost provision but not at the expense of national security.
First, primarily the fuel source must be generated domestically, which is realistic given most energy in the U.S. these days is produced here. Second, components to deliver that energy must minimize reliance on other nations for materials, which would put renewable sources at a disadvantage because for these some critical materials are monopolized by foreign powers, some not all that friendly to the U.S.
Third, the source must be affordable, more specifically meaning cost-effective and readily available on demand – again, something that plays more to the strengths of fossil fuels as opposed to renewable sources. Fourth, power must be reliable, defined as a minimum capacity factor of fifty per cent (which wind and solar can’t match), constantly dispatchable (rarely for wind and solar), and ramping ability within an hour (very difficult for wind and solar), but this can be met through redundancy. Finally, the definition of “clean” energy would include natural gas and nuclear sources.
In short, if the PSC regulated this language, or higher up the Legislature put it into law, this would encourage reducing higher-cost renewable energy source use by providers that would keep the lid on consumer prices. This is something Coussan and/or Quinn should endorse, and could be the key to separating themselves from the field – or stalemating if both made such a pledge.
Politically, Quinn might benefit the most as the Coussan campaign towards the end of September had churned through nearly $200,000 in two months yet still had nearly half a million in reserve, while she spent little but collected about $125,000 for the stretch run. One of the two will win although likely it will take a runoff to do so, and a bold policy proposal like this might help her more than him to make up for his campaign resource advantage.
Regardless of the dynamics of this contest, the PSC and/or Legislature would serve citizens well by promulgating something like this model language, as soon as possible.