Green Energy Mandates Meet the Commerce Clause

RealClear Energy ^ | 29 Sep. 2026 | Jonathan Lesser

[MtnClimber]

Pennsylvania's renewable energy mandate is finally facing a constitutional test. In a lawsuit filed September 3, West Virginia argues that Pennsylvania's requirement that many qualifying renewable generators be located within the state violates a basic principle of interstate commerce: states cannot rig markets to favor their own businesses. The case highlights a broader problem with renewable energy mandates: their high cost.

Twenty-eight states and the District of Columbia mandate that electric utilities purchase increasing percentages of their customers' electricity from specific types of 'green' generating resources. Qualifying suppliers are issued renewable energy credits, or RECs, which utilities must purchase. Utilities then pass the costs on to consumers.

Most RECs come from wind and solar generation, but some states, including Pennsylvania, allow other resources, such as waste coal and burning garbage. Moreover, solar RECs are often carved out into their own category, called SRECs.

The rationales for the mandates have spanned everything from fighting climate change and reducing U.S. dependence on foreign oil to promoting economic development and “green” jobs. While none has accomplished those goals, they have all increased electricity costs by forcing electric utilities to purchase increasing quantities of RECs and SRECs. Over the six-year period, 2020–2025, U.S. electric ratepayers paid almost $45 billion more for their electricity. As the mandates increase, so do the annual costs. The economic damage is compounded because higher-cost electricity ripples through the entire U.S. economy, increasing costs for virtually all goods and services.

In their zeal to promote in-state economic development, several mid-Atlantic states, notably Pennsylvania, also require generation owners eligible for RECs to be physically located within their boundaries. That's problematic for ratepayers and out-of-state suppliers, as a lawsuit West Virginia filed against Pennsylvania points out.

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TOPICS: Business/Economy; Society
KEYWORDS: climatechange

[MtnClimber]

The increased cost of electricity ripples through the economy to make most things more expensive.

[Brian Griffin]

FLORIDA POWER&LIGHT

RESIDENTIAL SERVICE RATE SCHEDULE: RS-1

In all areas served.

For service for all domestic purposes in individually metered dwelling units and in duplexes and triplexes, including the separately-metered non-commercial facilities of a residential Customer (i.e., garages, water pumps, etc.).

Also for service to commonly-owned facilities of condominium, cooperative and homeowners’ associations as set forth on Sheet No. 8.211, Rider CU.

SERVICE:
Single phase, 60 hertz at available standard distribution voltage. Three phase service may be furnished but only under special arrangements. All residential service required on the premises by Customer shall be supplied through one meter.

MONTHLY RATE:
Minimum:
$30.00

Base Charge:
$10.52

Base Energy Charge:
First 1,000 kWh
7.865¢ per kWh
All additional kWh
8.865¢ per kWh

Additional Charges:
Residential Load Management Program (if applicable), See Sheet No.8.217

BILLING ADJUSTMENT RATES [added]

FUEL
1st 1,000 kWh 2.893¢/kWh
all addn kWh 3.893¢/kWh

CONSERVATION
0.148¢/kWh

CAPACITY
0.052¢/kWh

ENVIRONMENTAL
0.345¢/kWh

STORM PROTECTION
0.995¢/kWh

https://www.fpl.com/content/dam/fplgp/us/en/rates/pdf/electric-tariff-section8.pdf

[Tell It Right]

In Alabama, my past 12 power bills averaged $83/month. That's for a 2,300 sq ft all-electric house. And also includes charging our EV, which we drove 16K miles in the past 12 months (1,300 / month) just on home charged miles alone.

No natural gas bill. Little gasoline cost (what little we drive the gas pickup). That's the value of decentralized solar -- buying your own equipment and regulating it yourself.

[oldtech]

Sounds like I got overcharged. My home is a little smaller & I have naturual gas bill to heat it & for hot water. Not sure what my average for last year was, but you live in a warmer area, so it should be cheaper. I can’t afford to move if I wanted to.

[not in the club]

Finally. This appears to be a proper use of the interstate commerce clause. It looks like PA is trying to implement a protectionist tariff on electricity without calling it a tariff.
I am not a lawyer, but I strongly disagree with any decision that says interstate commerce is anything other than commerce between state governments.

[MMusson]

The Biden Administration estimated that Going Green would TRIPLE ELECTRICITY COSTS.

[spintreebob]

It would be useful for someone to create a graphic that depicted the cost of electricity... probably at the two extremes of the US.

The cost of the raw input. The cost of the processing plants and equipment. The cost of government regulation, including the staff of management and lawyers on all sides to handle the regulation. The cost of taxes and fees. etc.