Texas State Comptroller Susan Combs is no fan of the Texas wind energy sector.
The state has the largest wind capacity in the U.S., but Combs doesn’t seem to see the benefit of subsidizing wind energy; indeed, her office released a report that details the tax breaks given to wind power and recommends that they be ended. The report is highly critical of wind power, claiming that it undermines other sources of electricity and is being given an unfair advantage by receiving subsidies. She, along with Donna Nelson, Chairwoman of the Texas Public Utility Commission, argue that the incentives given to the wind industry are no longer needed because it is now a “mature” industry and no longer needs to be propped up but should stand on its own two feet.
She also calls out the CREZ (Competitive Renewable Energy Zone) transmission lines, which serve to deliver energy from the more remote areas where it is produced to the population centers. These lines are paid for by fees added to the electricity bills of Texas customers in order to defray the costs. Combs estimates that the CREZ project, which cost $6.9 billion, costs the average household $70-100 per year. She also contends that wind is variable and can’t be depended upon to produce at peak times.
Jeff Clark, Executive Director of The Wind Coalition, calls the assertions in Combs’s report “unbalanced” and “misinformed”, noting that the wind industry has received a tiny fraction of energy subsidies, with the lion’s share going to oil and gas, industries which could certainly called “mature” long before the advent of renewable energy. He cites a 2008 report released by the Comptroller reporting that wind energy received only 3.4% of federal subsidies, as compared to oil and gas, which received 99.6 of state and local incentives.
Furthermore, Clark points out that Combs criticized the expense of the CREZ transmission lines without acknowledging all the other transmission lines that were built to subsidize coal, gas, nuclear, and other types of power and were also paid for by the public. In addition, the CREZ lines will be used not only by the wind industry but also by these other power generators, who are still subsidized.
As to the cost per household for the CREZ lines, Clark counters that wind power has saved ratepayers up to $900 million on cheaper electricity alone, in addition to cutting enough emissions to equal taking over 4 million cars off the road, thereby improving air and water quality. He says that in times when the demand is high, if the wind is not generating sufficient energy, it is easy enough to bring gas-fired power plants online to pick up the slack.
Overall, though, he maintains that, even though it may not produce 100% of the energy capacity currently needed for the state, energy from wind is clean, requires no fuel (and therefore reduces the need for imported fuel, such as coal from Wyoming), and also requires no water, an ever-more-precious resource.
Clark also states that wind power has been a tremendous boon to farmers, as rural landowners can use the tax credits and income from wind farming to stay on their land, on which they pay taxes to the state.
With the Environmental Protection Agency’s recent crackdown on coal emissions, alternative sources of energy, especially those with low or no emissions, look like a natural choice, but as always, there are strong opinions on both sides.
About The Texas Chamber of Commerce Energy Association: TCCEA advocates for lower energy costs for Texas businesses while promoting sustainability and pragmatic energy policy. Member chambers of the Texas Chamber of Commerce Energy Association represent businesses of all sizes throughout Texas.
