Shock as Republican plan will raise Americans' utility bills by hundreds a year

[justaprogressive]

Energy policy analysts are in broad agreement about one consequence of major legislation that Republicans are currently pushing through Congress: It will raise energy prices for the average American household by hundreds of dollars, once all is said and done.

That’s because the legislation, which President Donald Trump has dubbed the One Big, Beautiful Bill, will repeal the vast majority of clean energy provisions contained in the Inflation Reduction Act, or IRA, which a Democrat-controlled Congress passed in 2022. That earlier law provided a wide array of financial incentives for the deployment of electricity sources like solar, wind, battery storage, and nuclear power, as well as support for consumers looking to buy zero- and low-emissions products like electric vehicles. Choking off support for those measures not only hobbles U.S. efforts to fight climate change — the IRA, if left intact, could single-handedly reduce the country’s carbon emissions by 40 percent — but it also means there are fewer new sources of energy for a country that has started to need more and more of it. And reduced supply coupled with increased demand means higher prices.

That’s the virtually unanimous conclusion of the academics and policy experts who have been trying to understand the likely effects of the rollback for the past few months, though each group of experts used different assumptions about the full extent of IRA repeal, given that the legislation is still being revised by the Senate. Part of the reason for this unanimity is that, once constructed, many newer energy sources like wind and solar don’t have substantial operating costs compared to traditional power plants that must be continuously supplied with fuel.

“Clean electricity has zero generation cost,” said Robbie Orvis, a senior director for modeling and analysis at Energy Innovation, a nonpartisan think tank. “One of the dynamics is that less clean electricity gets built, and that makes power generation more expensive, because we’re relying more frequently on fossil fuels with higher generation costs.”

https://www.alternet.org/gop-energy-bills/

[Bernardo de La Paz]

1. Between OPEC flooding oil and US dollar decline, it has become uneconomic for drillers, so rig count is falling. nt

[surfered]

2. To compound matters, the Texas Senate has passed a bill with disincentives for generation of electricity from renewable

If passed into the law, this bill would discourage new windmill and solar generating farms at a time demand is increasing due to population growth, data centers, AI, and bitcoin mining. Electricity rates in Texas will go up if this bill passes the Texas House.