by Gene Denardo

Created on: April 27, 2009

Energy subsidizes of any kind to any industry, whether oil, coal, wind or solar, are simply transfers of wealth from the pockets of the working citizens to Resource and Energy Corporations. They serve no practical purpose other than bolstering the bottom lines of these companies and interfering with consumer choice.

The entire United States electrical system is a study in subsidy and market intervention. For the most part, all large power plant projects, including dams and nuclear plants, have been either directly paid for and built by the Federal Government often through the Army Corp of Engineers, or been highly subsidized. The electrical grid system, the fairly inefficient collection of nationwide power lines that transfer electrical power from centralized power plants to far away cities and towns, was constructed by the Government.

Once knowledge about electricity became commonplace, it was only a matter of time until people would "demand" that they were able to utilize this wonderful product. But, this in no way predetermines that bringing electricity to the citizen couldn't have been accomplished much more efficiently through the "free market". In fact, if done in that manner, we would be eons ahead of the situation we find ourselves in today; burdened with a fundamentally flawed and energy wasting system. A true market would only compensate efficiency and low cost, not inefficiency and the seemingly unlimited finances of the taxpayer.

Electricity is at its best when it is produced and consumed in relatively close distances. Our grid system utilizes huge power plants, planted many miles from the destination of the power. It is then transported at extremely high voltage over a very expensive but insufficient web of wires to its distant goal; homes and businesses. The further electricity travels, the more waste occurs as heat because of the inherent friction known as resistance. It is estimated that up to one third of the original electrical power is wasted before it gets to its final destination.

These large subsidized power plants are also very inefficient and waste up to half of the fuel consumed. This is primarily due to the fact that when Government enters the market, they have no need to compete. They cannot experience insolvency because of a bad or inefficient decision. Well, at least not yet! So, using taxpayer funds responsibly and competitively is not a concern.

Subsidies to all the Resource Energy Corporations, those that market our coal, oil, gas,

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