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XsunX, Inc. Renewable Energy Alert: April 19, 2011
An XsunX, Inc. (OTCBB: XSNX) shareholder's newsletter offering insights to technology and policies helping to shape the solar industry.
Governor Brown Signs Bill Increasing California's Renewable Portfolio Standard to 33%.
It has been months since our last Renewable Energy Alert but the latest announcement from the State of California that will require all utilities in the state to produce 33% of their power from renewables by 2020 is significant. As we know, California has the largest population and state economy in the USA and for decades the saying has been, "as California goes, so does the nation."
Why are the requirements to produce more electricity from renewable sources continuously increasing in states all over the nation? It's fairly obvious; it's the rising costs for coal and natural gas as the global demand for these commodities heats up, and the need to mitigate the pollution caused when coal and natural gas are used to make electricity. Comparatively, China has instituted only a 3% renewable mandate for an economy that is building nearly one new coal fired power plant per week. China's growth in the demand and dependency on commodities such as coal and natural gas may provide the long-term justification for California's renewable energy approach today.
So what is California doing to reduce its dependency of fossil fuels?
California's Governor Jerry Brown signed Senate Bill ("SB") X1-2 on Tuesday April 12, 2011 requiring California's electric utilities to procure 33% of their energy from renewable resources by 2020. Upon signing the bill, Governor Brown stated the "bill will bring many important benefits to California, including stimulating investment in green technologies in the state, creating thousands of new jobs, improving air quality, promoting energy independence, and reducing greenhouse gas emissions."
Details concerning the implementation of the new legislation will have to be worked out at various California regulatory agencies, including the California Public Utilities Commission and the California Energy Commission. The legislation will likely spawn numerous regulatory proceedings as the various power production agencies struggle to come to grips with the new Renewable Portfolio Standard (RPS) mandate.
Do government mandates such as the ones in California make economic sense?
Some who read this newsletter may argue that renewables such as solar can only compete due to government subsidies. The fact is that all fuels receive some form of government subsidy: oil, coal, natural gas, solar power, wind, and nuclear power. While there may appear to be an imbalance in which fuel receives how much subsidy, the reality is that solar subsidies invest in durable assets that over time help to reduce operating costs while fossil fuels, like natural gas and coal subsidies, do nothing to reduce long term operating costs.
The debate over where to best place "subsidy dollars" will continue to be driven by special interests, but at XsunX we believe that the debate should be reduced to a simple comparison, "Do we as a society continue to subsidize the daily operating costs of an electrical power plant for its coal or natural gas consumption and environmental pollution, or do we invest in durable long term assets in the form of solar power parks that deliver a clean, efficient, and long term solution well into the future."
We would like to hear what our investors think about this issue so feel free to email us at Investors@xsunx.com with your opinions and insight to these pressing long term issues.
As always, if you have any questions in the meantime, please contact our Investor Relations desk at investors@xsunx.com or (888) 797-4527.
Sincerely,
Joseph Grimes, President and COO, XsunX, Inc.
Safe Harbor Statement: Matters discussed in this shareholder newsletter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this shareholder newsletter, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
AI
