The old adage says that, “what goes up must come down” and this is true of energy commodities at least eventually.
As with any commodity they are due for the expected rise in prices as well as their eventual fall. Politicians use this seasonal type of issue to herd their constituents down the path they want them to think.
Liberals are extremely susceptible to this herding because of their zealous love for nature and the environment above even mankind.
And please don’t give me the argument that Eco lunacy such as global warming regulation is helping mankind. There will always be a trade off as we are consumers by nature and the ridiculousness of climate change should never be something we compromise our well being for when it comes to the environment.
This year the general arguments used are either there is too little regulation of electricity suppliers or there is too much regulation in the form of global warming and climate change emissions legislation.
A republican by the name of Ken Cuccinelli who is also the Attorney General of Virginia has blamed rising electricity rates on environmental laws that have passed in Virginia.
The democrats in VA are blaming the spike in electricity prices on not enough regulation but what is really to blame for rising electric rates.
According to industry experts the issue has to do with the rising cost of energy generation, transmission and congestion and regulations halting cheap petroleum based fuels. You may have heard of some of these cheap petroleum based energy products like coal, oil and natural gas. Yes there are supply and demand factors as well as energy traders sending these prices even higher but it is primarily oil that is going higher and oil has about a 1% effect on electricity generation costs.
More and more companies, hedge funds, and investors are using energy commodity markets and futures as a way to hedge against declining value in currencies.
So not all the people who buy energy are actually needing to use it to create electricity, power turbines, and run industrial facilities and with this increased demand on price you see higher electricity rates.
So yes fuel prices do cause a significant impact on the price of electricity but we cannot discount what liberal environmental legislation has done to impact price as there is data and proof to show it has raised rates.
In fact a large portion of the recent increase in electricity prices is attributable to environmental improvements made to the power generation facilities in Virginia to comply with federal laws and regulations.
The rise in electricity prices from Eco legislation was backed almost exclusively by the Democrats and much of this was related to the hotly debated CO2 related emissions retrofits.
When conservatives bring up the innovative efficient idea of deregulating the Virginia electricity markets all of a sudden liberal candidates say electricity rates will go up.
So Democratic candidates will create laws to raise electric rates but when the idea of deregulating the electricity market is brought up they conjure up theories that this would cause rates to rise?
At issue with Democrats in Virginia who are against deregulation are the millions of energy consumers in other deregulated states that overwhelmingly agree that deregulation does in fact work to lower rates and provide alternate choices.
Democrats have an ideology that says it is good for the government to control the major sectors of the economy such as retirement, energy, education, and health care.
When conservatives who see the efficiencies and benefits of allowing those companies really good in specific niches of the electricity sector to come in and compete all of a sudden this means rates will rise?
Can you see the artificial arguments liberals make when it comes to energy deregulation? They fundamentally want the government to have broad control over sectors such as energy as this is the liberal agenda.
They will of course resort to lies that something as common sense as competitive deregulation will cause prices to rise instead of fall. Why do people in Juarez Mexico travel across the boarder every day to El Paso to shop at Wal-Mart? The answer is more choice, higher quality and for cheaper prices.
So what do Virginians have to look forward to by not voting out liberal politicians that want to shut down the coal industry?
- The stoppage of the coal industry dead in its tracks even though their are clean coal technologies available to keep the environment clean while also keeping down the price of electricity.
- Less jobs in the manufacturing sector
- Much higher electricity prices in Virginia
