Governor’s Bill Helps OSW Companies by Driving Up Costs for MA Ratepayers
The Massachusetts Fiscal Alliance joined State Senator Michael Barrett (D-Lexington) in warning the public against Gov. Charlie Baker’s offshore wind bill (OSW) that would bail out international wind companies from rising inflation costs. The Governor is expected to offer testimony in support of his bill today at a Joint Committee on Telecommunications, Utilities and Energy hearing. As inflation hits a 40 year high, recent reports show that the OSW industry is facing significantly higher prices to produce energy. Inflation is driving up the price for steel, copper, aluminum and fibre product, coupled with a four-fold increase in logistic costs. According to analysis from the Wood Mackenzie report, these costs will continue for the foreseeable future. The report also notes that demand is softening, a major contributor in the rise in costs for OSW producers. The Governor’s bill would remove the price cap provision, an important price protection for Massachusetts consumers. This would open the door to high costs as international OSW companies will de-emphasis price, knowing consumers will be left with no choice but to purchase their expensive form of electricity.
“As Senator Barrett warned in his letter to Governor Baker, Massachusetts electricity prices are already 60 percent higher than the national average. Now is not the time to increase those prices, especially while demand is expected to increase. Governor Charlie Baker and Secretary of Energy and Environmental Affairs, Kathleen Theoharides need to understand that the concerns for Massachusetts ratepayers must be a priority over those of powerful international offshore wind companies,” stated Paul Diego Craney, spokesman for the Massachusetts Fiscal Alliance.
“Under President Biden’s failed policies, inflation is at a 40 year high. Massachusetts ratepayers cannot be expected to pay inflated prices in order to save face for a failing President. The price cap is a safeguard for Massachusetts residents, and it needs to be protected at all costs. While many affluent in Massachusetts would be happy to pay higher energy prices, most of middle class Massachusetts cannot afford it. The legislature would be wise to protect the middle class,” concluded Craney.