In-state renewable credit rules push over half of clean-energy costs in NJ, PA and D.C.
A new report shows that mandates requiring utilities to buy in-state renewable credits account for more than half of the cost of clean-energy programs in New Jersey, Pennsylvania and Washington, D.C., adding hundreds of dollars to customer bills.
A study from Always On Energy Research found that rules forcing utilities to purchase in-state renewable energy credits make up 51 % of New Jersey’s, 52 % of Pennsylvania’s and roughly 57 % of Washington, D.C.’s renewable-portfolio costs. Utilities meet these mandates by buying credits equal to one megawatt-hour of qualifying power, and the expense is passed on to ratepayers, adding about $775 per customer in D.C., $298 in New Jersey and $227 in Maryland.
D.C. Mayor Muriel Bowser’s office declined comment, and the Maryland Public Service Commission, New Jersey Board of Public Utilities and Pennsylvania Public Utility Commission have not responded. The report also details a surge in Pennsylvania’s Tier II credit costs and a Commerce Clause lawsuit filed by West Virginia Attorney General JB McCuskey. Analysts criticize the mandates as costly and inefficient, especially local solar requirements that cost far more per megawatt-hour than other renewables. The Energy Department warned such policies can raise electricity prices by up to 45 % compared with states lacking similar standards.
Why it matters
The findings reveal how state renewable policies are inflating electricity bills for millions of consumers.
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