Driving Up The Cost Of Energy While Claiming To Promote "Affordability"

 Francis Menton criticizes political leaders in Northeastern states who claim to support affordable energy while electricity prices remain high. He highlights the discrepancy between their pledges and the actual cost experienced by consumers, examining the factors driving these prices up.

1. Political Spin: Many politicians engage in exaggeration or misleading claims about energy affordability. Recent campaigns by Abigail Spanberger and Mikie Sherrill for governorships in Virginia and New Jersey leverage this theme.

2. High Electricity Costs: The Northeastern states have some of the highest electricity rates in the U. S., with rates nearly double or significantly above the national average. For example, residential rates are:

• New York: 29.99 cents/kWh

• Connecticut: 30.77 cents/kWh

• Massachusetts: 30.46 cents/kWh

3. Regional Greenhouse Gas Initiative (RGGI): This initiative involves states like Massachusetts, New Jersey, and New York, aiming to cap and reduce CO2 emissions from power plants. It requires fossil fuel plants to buy allowances equivalent to their emissions, increasing operational costs.

4. Impact of RGGI on Prices: RGGI's structure intentionally drives up electricity prices, with fewer allowances made available over time. The rising prices for these allowances directly contribute to growing consumer electricity bills.

5. Economic Analysis: Estimates suggest that RGGI allowances currently add about 2.5 cents per kWh to consumer bills, translating to a potential increase of over 10-15%. This impact is expected to worsen as supply decreases.

6. Lack of Consumer Benefits: The article argues that consumers receive no tangible benefits from the increased costs tied to RGGI, creating a situation where higher electricity prices are imposed without justification.

The article underscores the inconsistencies between politicians’ claims of promoting energy affordability and the reality of rising costs in Northeastern states. The RGGI not only contributes to this issue but does so in a way that is less transparent to consumers. Menton warns readers to be skeptical of political promises regarding energy affordability amidst these increasing financial burdens.

https://www.manhattancontrarian.com/blog/2026-5-20-driving-up-the-cost-of-energy-while-claiming-to-promote-affordability