OPINION: Delegate Boteler Opposes Tax Increase to Fund Wind Energy

Editor's Note: Republican Delegate Joe Boteler III of Legislative District 8, which includes parts of Perry Hall and Parkville, submitted the following opinion editorial as a letter to the editor.

Although Gov. Martin O’Malley campaigned that he would lower ratepayer costs and residential energy costs, his proposal to raise almost every state resident's electric bill for the next 20 years runs contrary to that promise. The legislation (Senate Bill 861- Maryland Offshore Wind Energy Act) is meant to fund some of the nation’s first offshore wind power. According to legislative analysts, the monthly tax for residential customers is estimated to be around $3.61. However, according to utility analysts, the monthly tax can be as high as $7. Meanwhile, industrial customers would be paying thousands more on utility bills.

The offshore wind project is projected to cost $1.5 billion for turbines located approximately 11.5 miles off the coast of Ocean City. O’Malley believes that if similar projects are launched in surrounding states, the industry will mature in 10 years or so and prices will be competitive with the prices for oil and gas. The initiative is also meant to provide construction and manufacturing jobs that are not going to be sent overseas. Under this plan, utility companies would be required to buy wind energy at a fixed price for at least 20 years. The prices, though, would be above the market price. That is good news for developers and investors, but not for consumers.

While wind power energy costs may be relatively reasonable at 21 cents per kilowatt hour in 2016, that rate may climb to 44 cents per kilowatt hour in 2040. Meanwhile, electric energy costs, currently at 11.1 cents on average (U.S. Energy Information Administration), are projected to decline in the long-term.

I oppose any tax increase, especially if all the factors are not considered, as in Senate Bill 861. I am against the bill not because I am opposed to alternate forms of energy, but because there is not enough information available on the costs involved with the plan to actually try to implement it. 

If you have any questions or concerns, feel free to contact me at Joseph.Boteler@house.state.md.us. I always look forward to hearing from you.