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30 percent higher average electric rates in states with RPS

The average residential electric rate in states with a Renewable Portfolio Standard (RPS) is nearly 30 percent higher than states without an RPS. An RPS is a state based policy that requires electric power “providers to supply a specified minimum amount of customer load with electricity from eligible renewable energy sources,” such as wind or solar. The average for states with an RPS is 12.99 cents per kilowatt hour and 10.01 cents in states without an RPS.

Do the math. For a family of four that averages 1000 kilowatt hours per month, the RPS state average electric rate would make their annual bill $1558.00. While the non-RPS average electric rate would cost that same family only $1201.00 annually.

As for Colorado, we reported earlier that our electric rates are lower than the national average for now now, but they are higher than all neighboring states and second highest in the Rocky Mountain West.

We have long argued that renewable energy mandates make electric bills needlessly more expensive despite the presence of rate caps and the myth of market forces. The following chart based on residential rate information from a recent USA Today article and RPS information from the U.S. Department of Energy seems to prove it as well. (States with an asterisk have voluntary goals rather than mandates)

State RPS Year Residential cost in cents per kw
Arizona

15%

2025

10.67

California

33%

2030

14.75

Colorado

30%

2020

11.04

Connecticut

23%

2020

19.25

District of Columbia

20%

2020

14.01

Delaware

20%

2019

13.8

Hawaii

20%

2020

28.1

Iowa

105 MW

10.42

Illinois

25%

2025

11.52

Massachusetts

15%

2020

14.59

Maryland

20%

2022

14.32

Maine

40%

2017

15.71

Michigan

10%

2015

12.46

Minnesota

25%

2025

10.59

Missouri

15%

2021

9.08

Montana

15%

2015

9.16

New Hampshire

23.80%

2025

16.32

New Jersey

22.50%

2021

16.57

New Mexico

20%

2020

10.52

Nevada

20%

2015

12.36

New York

24%

2013

18.74

North Carolina

12.50%

2021

10.12

North Dakota*

10%

2015

8.13

Oregon

25%

2025

8.87

Pennsylvania

8%

2020

12.7

Rhode Island

16%

2019

15.92

South Dakota*

10%

2015

8.97

Texas

5,880 MW

2015

11.6

Utah*

20%

2025

11.6

Vermont*

10%

2013

15.57

Virginia*

12%

2022

10.45

Washington

15%

2020

8.04

Wisconsin

10%

2015

12.65

Average

12.99

States without RPS

Alabama

10.67

Alaska

16.26

Arkansas

8.86

Florida

11.44

Georgia

10.07

Idaho

7.99

Indiana

9.56

Kansas

10.03

Kentucky

8.57

Louisiana

8.98

Mississippi

9.87

Nebraska

8.94

Ohio

11.32

Oklahoma

9.14

South Carolina

10.5

Tennesse

9.23

West Virginia

8.79

Average

10.01