Free Markets, Free People

Daily Archives: August 7, 2012

Nevada’s epic “green energy” failure

Unfortunately these stories are all too common now:

As U.S. Senate Majority Leader Harry Reid prepares to host his fifth annual  National Clean Energy Summit on Aug. 7, a Nevada Journal examination of Nevada’s renewable energy sector shows that over $1.3 billion in federal funds funneled into geothermal, solar and wind projects since 2009 has yielded and is projected to yield just 288 permanent, full-time jobs.

That’s an initial cost of over $4.6 million per job.

So as the Senator from Nevada tries today to justify his profligacy in his home state at your expense via this sham “National Clean Energy Summit”, you can be assured of one thing – No one in government will be held accountable for this, at least not legally. 

The performance of many of these “sons of cronyism” is as dismal as the cost per job is outrageous.

Auditors for Nevada Geothermal Power, a federally subsidized green-energy firm in Nevada, are raising questions about whether that firm is going to fail.

As of last October, Nevada Geothermal Power had 22 employees in Nevada, and, according to the New York Times, had received $145 million in federal subsidies — composed of a loan guarantee of nearly $79 million for its Blue Mountain geothermal project and at least $66 million in grants to the company itself.

The Times called the company a “politically connected clean energy start-up that has relied heavily on an Obama administration loan guarantee,” and said it “… is now facing financial turmoil.”

Today, three quarters later, the latest company audit again questions the “company’s ability to continue as a going concern.”

The firm’s survival, wrote auditors on March 31, will depend “on its available cash and its ability to continue to raise funds….”

And that’s not the only example:

The most recent “clean energy” company failure in Nevada occurred three weeks ago when Amonix, a North Las Vegas solar manufacturing plant that had received more than $20 million in federal tax credits and grants, closed after only 14 months of operation.

Hailed upon its opening by Sen. Reid, U.S. Rep. Shelley Berkley and Gov. Brian Sandoval, the 214,000-square-foot Amonix facility had, at its height, employed some 700 individuals. In 2010, even President Barack Obama praised the Amonix plant, saying the “stimulus” tax credits it received had made an “extraordinary impact.”

Today, the company is bankrupt.

The result is something out of an Orwellian nightmare and the ultimate victim?  The people of Nevada:

In Nevada, consumer energy rates climb higher and higher. According to the Energy Information Administration (EIA), Nevada now has the highest residential electricity rates in the Intermountain West region.

Moreover, so long as present government policies — such as the state’s Renewable Portfolio Standard — remain in place, rates will continue upward.

While Sen. Reid helped Salazar fast-track government-approved renewable projects in 2009, he also used his influence as Senate majority leader to delay and ultimately kill a coal power plant planned for White Pine County.

Coal-powered plants produce electricity at a much lower price than do renewable-powered plants, according to the EIA and NV Energy.

Currently, NV Energy pays 3 to 5 cents per kilowatt-hour for natural gas and coal-fueled power, 8 to 10 cents per kWh for geothermal energy and for wind energy and 11 to 13 cents per kWh for solar photovoltaic energy. Wind and solar photovoltaic energy also require backup power for “intermittency issues.”

The higher costs from renewable-energy production are passed on to Nevada ratepayers in the form of residential electricity rates that are 26 percent higher than those of other Intermountain West states and 7 percent higher than the national average, says the EIA.

Obviously cronyism isn’t just limited to Democrats.  It’s just their turn in the barrel because their cronyism has been such a spectacular disaster here lately.

What none of our elected officials who regularly indulge in cronyism seem to understand is that they call certain things economic principles or economic laws for a reason – they aren’t something you can ignore and expect, for some reason, to be successful in ignoring them.

In this case Richard Epstein of the Hoover Institute again states why what is again being attempted, and failing, is a lesson that the government seems never to learn:

These subsidies programs have failed for mundane but compelling reasons. No government has ever succeeded in trying to shape industrial policy with state subsidies, for the simple reason that it has neither the knowledge nor the incentives to pick which fields make sense to invest in or which firms in these fields have latched onto a viable technology.

No government should, of course, ban investments in solar and wind energy, but the prudent strategy is to let these investments be made by venture capitalists and other entrepreneurs who might actually know what they are doing. And currently, the smart money seems to be steering clear of renewable energy technologies.

And yet we continue to see these sorts of attempts by government to do something it is entirely unequipped (and unneeded) to do.

You know, act like it has better information than … markets.  It never has, it never will.  The results are just about as predictable as sunrise.

Failure.  In some cases epic failure.

In the case of Nevada, government intrusion, at the cost of $1.3 billion of your dollars, has created a whopping 288 jobs and managed to quadruple energy costs for the state’s residents.

And yes, I put that in the epic failure column – but then we’re talking Harry Reid here, so one should be used to epic failure when his name is mentioned.

~McQ

Twitter: @McQandO

Economic Statistics for 7 Aug 12

The following statistics were released today on the state of the US economy:

Redbook reports year-on-year same store sales growth at 2.0%, but the 4-week average, at 1.5% is at a recovery low. ICSC-Goldman Store Sales are unchanged from last week, and up only 1.4% from last year, also a recovery low.

The report on Consumer credit is due out this afternoon.

~
Dale Franks
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There is no voter fraud, except when there is voter fraud

Like in the MN Senate race that put Al Franken in office and provided Senate Democrats with their 60th vote.

Byron York provides the short version of the story and what was found subsequently:

In the ’08 campaign, Republican Sen. Norm Coleman was running for re-election against Democrat Al Franken. It was impossibly close; on the morning after the election, after 2.9 million people had voted, Coleman led Franken by 725 votes.

Franken and his Democratic allies dispatched an army of lawyers to challenge the results. After the first canvass, Coleman’s lead was down to 206 votes. That was followed by months of wrangling and litigation. In the end, Franken was declared the winner by 312 votes. He was sworn into office in July 2009, eight months after the election.

During the controversy a conservative group called Minnesota Majority began to look into claims of voter fraud. Comparing criminal records with voting rolls, the group identified 1,099 felons — all ineligible to vote — who had voted in the Franken-Coleman race.

And what has happened since?

And so far, Fund and von Spakovsky report, 177 people have been convicted — not just accused, but convicted — of voting fraudulently in the Senate race. Another 66 are awaiting trial. "The numbers aren’t greater," the authors say, "because the standard for convicting someone of voter fraud in Minnesota is that they must have been both ineligible, and ‘knowingly’ voted unlawfully." The accused can get off by claiming not to have known they did anything wrong.

Still, that’s a total of 243 people either convicted of voter fraud or awaiting trial in an election that was decided by 312 votes.

And, of course, the probability is these felons absolutely knew they were breaking the law and fraudulently voted anyway.

Obviously making a connection between them and Democrats is likely impossible, but it does point to something that the left consistently denies – the existence of voter fraud.

It exists.  Denying it exists, as the left does, only damages their credibility. 

Many times it is the system itself which enables fraud to be carried out.  Incompetence and inefficiency within government agencies charged with supervising voting are as much the problem as the frauds.  For instance:

The Houston-based True the Vote said it has identified 160 counties across 19 states with more registered voters on their rolls than eligible live voters. This chart highlights the 19 states and how they voted in the 2008 election.

Keeping the voter roles current and ensuring all registered voters are eligible would seem to be a primary mission of any state’s voter bureaucracy, wouldn’t it?

Yet what did we recently see – the Obama DoJ go after the state of Florida for doing its job and purging it’s voter roles of the dead and ineligible.  You’d think that they’d encourage such an action because it helps guarantee the integrity of the voting system.

But instead, it tried to stop it.

There is all sorts of fraud.  That like York points out.  That like this case in Miami:

It’s a shady world, as the case of 56-year-old Deisy Cabrera in Hialeah shows.

Cabrera was charged Wednesday with a state felony for allegedly forging an elderly woman’s signature on an absentee ballot, and with two counts of violating a Miami-Dade County ordinance banning the possession of more than two filled-out absentee ballots.

Much of the fraud takes place within the early voting venues.  As the above case illustrates, preying on nursing home residents is only one of many ways fraudulent ballots are cast.

However the Democrats contend that voter ID laws are a means of stopping a problem that doesn’t exist.  They claim there is very little if any fraud to be found in same day voting.  Of course that’s hard to substantiate when voter roles are larger than the pool of eligible voters in many areas and no on is asked to prove who they are. 

The other complaint is that voter ID laws “disenfranchise” minorities and the poor.  Yet Georgia’s experience directly contradicts that claim with minority and overall voter turnout increasing in the elections following the implementation of a voter ID law.

Bottom line: the integrity of the voting system is paramount to instilling confidence in the citizenry that their voices are being truly heard.   If ever there seemed to an issue that should be truly bi-partisan, this would be it.  Yet there are very clear battle-lines drawn with one side claiming fraud doesn’t exist (and they’re factually incorrect about that) and the other saying it does and something should be done about it.

Guess which side I come down on?

~McQ

Twitter: @McQandO