Wednesday, May 27, 2009

Your Taxes Are Going Up...Again (Unless You Don't Pay a Utility Bill)

Ol' Ready Kilowatt is feeling pretty chipper today. He got a raise!

Last year, the legislature approved a bill to force electric and gas utilities to move towards a "renewable portfolio standard." Ten percent of the state's energy must come from renewable sources by 2015 according to this law. But because it is impossible to achieve without huge cost increases to the utility companies, the legislature allowed them to raise your rates with a new surcharge (tax) to cover the cost.

According to a story in the Jackson Citizen Patriot, electric bills will go up seventy-one cents a month starting next week. Gas bills will increase $1.72 per month and then, in September, electric bills will have an additional $2.50 per month added on. The utilities wanted $10.00 per month, and eventually they will get it, I predict.

Here is a story about how some small businesses are being affected by the rate increases, which are much larger for them. It is not good for business. But, if you want to read the positive spin, here is a letter from Governor Granholm about how "11,000 jobs" have been created in clean, renewable energy.

Oh, you will notice one of the new industries she announced as coming to Michigan to create those jobs is United Solar Ovonic. The governor proudly announced in March, 2006, hundreds of new jobs would be created with this company. Millions of taxpayer dollars in grants from the MEDC along with tax breaks were offered. Sadly, it was announced this month that they are laying off most of their workforce.

So, what we have is central planners (legislators and the governor) telling us what the next big thing is going to be, laying out millions in grants, and forcing new taxes on rate payers to cover the cost of "going green." And what we end up with is higher rates, at least one business going bust with your tax dollars, and existing small businesses (who aren't getting any MEDC grants) getting closer to going under. The experts in Lansing strike again.



Jhuspek said...

Politicians are getting so sickening I can barely stand it.

John Hendrickson said...

Isn't it time that we put it on the ballot to put our reps and senators on a pay scale that parallels our other civil servants, the military? They put their lives on the line every day and get paid a pittance while our federal reps and senators are lavished with salary and benefits. Maybe that would help them plug back into the real world we all live in.

Kathy Holman said...

Our new president was elected on the slogan,Spread the Wealth. I''m still waiting for him to spread some of his wealth my way. So far all I've seen is our government draining the life blood out of the American taxpayers. Are our representatives in Congress sacrificing as much as they're demanding the American people sacrifice? They're not asking for our opinion. The are making decisions that will effect our futures with no thought to our preferences. It's time we take control of our country back, and reming Congress they will be out of jobs unless they start putting the welfare of the American voter before their own selfish agendas!