The Maneater

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Proposition C

State-level ballot issue in the 2008 general election

General information

Official ballot language

Shall Missouri law be amended to require investor-owned electric utilities to generate or purchase electricity from renewable energy sources such as solar, wind, biomass and hydropower with the renewable energy sources equaling at least 2% of retail sales by 2011 increasing incrementally to at least 15% by 2021, including at least 2% from solar energy; and restricting to no more than 1% any rate increase to consumers for this renewable energy?

The estimated direct cost to state governmental entities is $395,183.  It is estimated there are no direct costs or savings to local governmental entities.  However, indirect costs may be incurred by state and local governmental entities if the proposal results in increased electricity retail rates.

Other info

Proposition C would mandate electric utility companies to generate or purchase electricity from renewable sources including solar, wind, biomass and hydropower. Renewable energy must account for 2 percent of electricity sales by 2011, 5 percent by 2014, 10 percent by 2018 with the goal of 15 percent by 2021, 2 percent of which must be from solar energy. Electricity rates for renewable energy would not increase for consumers by more than 1 percent.

The cost to the state is estimated at $395,183 annually with no direct financial impact on local government and would not affect taxes. If the retail rate of electricity goes up because of the initiative, however, there might be additional indirect costs to both state and local governments.

Pros and cons

Pro Con

From Kathleen Logan Smith, Missouri Coalition for the Environment:

  • Would diversify Missouri’s energy sources and decrease dependence on coal, which has become more expensive and less available over time
  • Would contribute to decentralizing the energy system so the energy sources are closer to where they are being used
  • There are 875 manufacturing firms in Missouri capable of putting together wind turbines, Smith said.
  • Farmers can make money by having wind turbines on their land.

 

From AmerenUE’s company statement on Proposition C:

  • Certain types of energy mandated by the measure, most notably solar energy, are less dependable in Missouri, where the sun shines for fewer hours and with less intensity than in southern or western states.
  • Proposition C would force Missouri utility companies to buy credits from states where solar energy is more effective, which would increase the price of energy for consumers.
  • AmerenUE has said the focus should shift from solar to landfill gas and biomass, which are more easily available and would better fit the needs of the state.

(AmerenUE would like to clarify it does not oppose Proposition C, but it does have some concerns.)