Monday, January 07, 2013

Approaching California's Green Energy Wasteland Catastrophe

The California government's firm commitment to intermittent unreliable forms of energy is taking the state into an economic, energy, and employment wasteland, from which it may take several decades to recover.
California residents already pay nearly three times the rate as many other states and that figure is headed straight up as well. All this will weigh heavily on the California economy. Businesses are already responding by moving out at a very rapid rate...

...electricity prices are headed straight up. This is because wind and solar are still far more expensive than fossil fuels and nuclear. These costs are often disguised in that wind and solar can be produced at zero marginal costs when the wind blows or the sun shines. But these sources must be constantly backed up by gas, coal and nuclear, which become more expensive to run when they can only sell their power intermittently.

All this is driving business out of the state. As The Wall Street Journal reported last week, several states have now opened full-time recruiting offices in California hoping to lure away businesses. Chief Executive Magazine ranks California last in the country for its business climate. Taxes and regulations are often mentioned but the “high cost of doing business” – which includes electricity prices – always a major factor as well. _RCE

California's badly structured energy policy is reminiscent of its disastrous immigration policy combined with its catastrophic policy of public employee compensation packages -- all of which are combining to create the perfect storm of catastrophic collapse for California government.

Particular counties and municipal areas may be in a good position to weather the coming storm. But most of the state will be devastated.

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