Support CWIP
All clean energy sources are large initial investments with low or zero fuel costs. Accordingly, a utility rate structure that allows the cost of fuel to be passed on to ratepayers but does not allow a surcharge to cover the cost of initial investments is a major disincentive to all clean energy projects. Construction Work In Progress (CWIP) surcharges were once commonplace, but "electric rate reform" groups staffed by anti-nuclear activists eliminated CWIP surcharges nationwide as a tactical move to kill off nuclear power in favor of natural gas. Power plants that burn natural gas are cheap to build, meaning that a utility that builds a natural-gas-powered generator does not go as deeply into debt as one that invests in clean energy. Unfortunately, natural gas is expensive and insecure--and pollutes. Furthermore, when the occasional clean energy project comes online, anti-CWIP statutes require that the cost of construction be recovered only when the plant operates--resulting in a sudden spike in rates when the plant comes online. Ultimately, anti-CWIP statutes result in volatility, high rates, and pollution.
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