Our View: An energy-fraud twofer insult

Proposition 7's arrogance should offend every Californian. Its two alleged benefits are that it will "reduce the rising costs of energy" and "limit the dangers of global warming."

First, the more-obvious canard: Even if you buy the theory that man-made greenhouse gas emissions create higher global temperatures, which we don't, the certainty of growing reliance on fossil fuels by developing nations alone would far outweigh whatever relatively meager emission reductions California might accomplish through Prop. 7.

The other preposterous claim that Prop. 7 will "reduce the rising costs of energy," is, at best, wishful thinking. The independent state Legislative Analyst concluded, "Higher electricity rates are more likely in the short term," and "the same cost factors ... might also lead to higher long-run electricity rates." So much for reducing energy costs.

The Legislative Analyst also states that the proposition's imposed government manipulation of electricity prices, artificial price caps and efforts to determine electricity's "market price" will have unknown effects. We shudder at the thought of government determining market prices. Recall President Nixon's wage and price controls of the early 1970s.

What Prop. 7 would accomplish is a new requirement that utilities must generate half their electrical output from renewable energy sources by 2025. The state already requires nongovernment-run utilities to provide 20 percent of their power from renewable sources by that date.

Prop. 7 would force the conversion from affordable and proven coal, oil and nuclear power to alternative sources such as solar and wind. If solar and wind are so economical, affordable and reasonable, why haven't utilities already converted?

The Draconian proposals and over-the-top claims of Prop. 7 have achieved one, heretofore implausible outcome. A highly unlikely coalition of 160 groups oppose it, including the Democratic and Republican parties, unions and the Chamber of Commerce, the California Taxpayers Association, California League of Conservation Voters and many other environmental groups.

Interestingly, many environmental groups oppose Prop. 7 because its rigid, top-down mandates would drive smaller-scale, renewable energy providers out of the market; others object to the arbitrary cap on pricing.

These are the inherent flaws of government dictating prices and products, which are matters best determined by the free, unregulated market through voluntary exchanges that benefit all participants.

Prop. 7 is an example of a ham-handed, onerous scheme for government to pick economic winners and losers based on preconceived notions and arbitrary preferences of a handful of cloistered, self-styled experts. That's more than offensive. It's economically dangerous and freedom-