Energy

Green New Deal? Biggest US City To Go ‘100 Percent Renewable’ Lost Millions On Solar, Wind Contracts

TheCityofGeorgetown /YouTube

Daily Caller News Foundation logo
Michael Bastasch DCNF Managing Editor
Font Size:
  • Georgetown, Texas, officials are lashing out at critics of its costly plan for 100 percent renewable electricity.
  • Green energy contracts have cost the Texas city $30 million in three years, providing a cautionary tale for Green New Deal supporters. 
  • Former Vice President Al Gore called the city a “trailblazer” on renewables, but now electricity rates will be going up.

As Congress debates the Green New Deal resolution to transition the U.S. economy to “net-zero” greenhouse gas emissions, a Texas town struggles under the growing financial burden of going green.

Georgetown has spent $30 million since it began its transition to 100 percent renewable energy in 2016, and, now, city officials are lashing out at local reporters and a conservative think tank for scrutinizing the cost to taxpayers.

“The entire 100 percent renewable claim is misleading,” Bill Peacock, vice president of research conservative Texas Public Policy Foundation (TPPF), told The Daily Caller News Foundation.

TPPF has been holding public hearings with angry Georgetown residents since last fall. The group also called out the city’s renewable energy claim that it runs solely on renewable power. (RELATED: Green New Deal? Wind Power ‘Dropped Off’ The Grid During Polar Vortex)

Peacock said the city’s “dogged, almost blind pursuit of renewables” has cost residents $30 million, maybe more, in additional electricity costs because of how it structured its contracts. Georgetown, with a population of roughly 70,000 people, is reportedly the largest U.S. city to claim to run on 100 percent renewable electricity.

“Nobody enters into contracts for twice as much electricity as they need,” Peacock said. “The only way it makes sense is if you’re trying to make the point that you’re 100 percent renewable.”

“Nobody else made this mistake that we’re aware of,” Peacock said.

Former U.S. VP Gore at Nobel Peace Prize Forum in Oslo

Former U.S. Vice President and 2007 Nobel Peace Prize winner Al Gore speaks at the Nobel Peace Prize Forum, in Oslo, Norway, on Dec. 11, 2018. NTB Scanpix/Heiko Junge via REUTERS

Now, the city is scrambling to get out of its long-term, fixed-price energy contracts. But what’s also remarkable is the city distanced itself from its claim to fame — running on 100 percent solar and wind power.

“The City has never claimed that the electrons produced by its energy contracts are the same electrons consumed in Georgetown,” city spokesman Jackson Daly said in an emailed statement.

Except, that’s the opposite of what city officials sold to the media over the past few years. In fact, “100%” is emblazoned on the city utility’s logo. The city says it can claim this because it purchases more wind and solar power than it actually needs, even though it doesn’t directly get all that power.

GUS_Logo

Photo: Screenshot of YouTube/TheCityofGeorgetown

Georgetown also produced videos on its solar and wind contracts, framing them as the “first step in Georgetown’s 100 percent renewable plan.” Those videos also suggest Georgetown is directly receiving all that green power, which isn’t the case.

There was likely no bigger proponent of going all in on renewables than Mayor Dale Ross, a Republican called the “unlikeliest hero of the green revolution” by Smithsonian. Ross even gained international attention. The BBC recently called him “an unlikely climate change hero.”

Since joining the green revolution, Ross has been featured in films, including a cameo in former Vice President Al Gore’s 2017 film “An Inconvenient Sequel.” Gore even called Georgetown a “trailblazer” for being the largest U.S. city to go 100 percent renewable.

WATCH:

Georgetown’s actions inspired other cities, including Washington, D.C., to follow suit and pledge to go 100 percent renewable. The news outlet CityLab compared what Georgetown was doing to the Green New Deal that’s touted by Democratic 2020 presidential hopefuls.

But, now, Ross seems to be buckling under the public backlash. He reportedly threatened Lorraine Brady, the editor of the local newspaper, for reporting on the city’s green energy woes.

“I was stunned and felt threatened,” Brady wrote in early February, detailing how Ross said he would use his influence as mayor to hurt The Williamson County Sun’s finances. “This apparent effort to silence the press suggests a disregard for the people and their right to know.”

Three weeks earlier, The Williamson County Sun published an article showing Georgetown had lost roughly $30 million since it began purchasing wind energy in 2016. Losses amplified in the last year after it began buying solar power in 2017.

Ross declined to speak to TheDCNF, instead referring questions to Daly, who criticized TPPF and local reporters scrutinizing the city’s decisions. (RELATED: Here’s How Much The Green New Deal Could Cost Your Family)

“Reports by a local newspaper and an anti-renewable energy advocacy organization have attempted to question Georgetown’s status as an electric utility that uses 100 percent renewable energy,” Daly said.

U.S. Representative Ocasio-Cortez and Senator Markey hold a news conference for their proposed "Green New Deal" at the U.S. Capitol in Washington

U.S. Democratic Rep. Alexandria Ocasio-Cortez of New York and Democratic Sen. Ed Markey of Massachusetts hold a news conference for their proposed “Green New Deal” to achieve net-zero greenhouse gas emissions in 10 years, at the U.S. Capitol in Washington, U.S., Feb. 7, 2019. REUTERS/Jonathan Ernst.

Green Raw Deal?

Georgetown started its move toward renewables in 2012 when the city paid the Lower Colorado River Authority $4.1 million to end its contract. Officials then began looking for other power providers, eventually signing long-term contracts with a solar and wind farm.

Ross called the decision a “no-brainer” that was based on dollars and cents, not global warming activism. The idea was to set electricity rates for the next 20 to 25 years, which he said natural gas providers wouldn’t do.

“This is a long-term pocketbook issue,” Ross said in August. “It’s a win for economics and a win for the environment.”

Georgetown’s utility signed up for wind and solar at fixed prices until 2035 and 2043, respectively, contracting to buy about twice as much power as it actually needs — the excess of which would be sold on the grid.

John Hesser, who joined the Georgetown City Council in 2013, said he was the only council member to oppose the long-term green energy contracts, which the city signed in 2014 for wind and 2015 for solar.

“Renewable energy has its limits,” Hesser told TheDCNF. “I was the only one who objected to the contract.”

Wind turbines generate power at the Loraine Windpark Project in Loraine

Wind turbines generate power at the Loraine Windpark Project in Loraine, Texas, U.S., Aug. 24, 2018. Picture taken August 24, 2018. REUTERS/Nick Oxford

After a career in finance, Hesser said he saw the risk in betting everything that electricity prices would go up, especially from natural gas and coal plants.

“What I saw was the financial contract looked like a futures contract,” Hesser said. “You do not take a fixed rate contract in a variable rate market. It’s like a mortal sin in finance.”

Energy prices plummeted, particularly natural gas prices, meaning the city lost money selling power back to the market. City figures show it exceeded its electricity budget for 2018 by $10.5 million.

City officials are looking for ways to make up the shortfall, including raising electricity rates. Recent rate hikes raised the average resident’s bill about $13 a month to recover losses from selling power on Texas’s electricity market.

The city is also trying to renegotiate its power contracts, and Hesser said “some good things” were happening on that front but did not go into detail.

TheDCNF reached out to other members of the city council, but none responded.

Follow Michael on Twitter

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel