THERE’S A GREAT deal of fuss in some quarters about Governor Carcieri’s veto of Senate Bill 2849, better known, albeit dubiously, as the “renewable energy” bill. “Renewable profits” might have been a better name.

The bill was originally designed to direct National Grid to enter into long-term agreements for the purchase of electricity generated from renewable energy sources (e.g., wind power) and pass along the costs to consumers. We absolutely agree with, and support the need to pursue, this type of legislation to encourage projects that would reduce our dependence on carbon-based fuels.

Unfortunately, on the way to the final draft the lobbyists got hold of the bill and larded it with extra goodies for their clients, all of which would be paid for by us consumers. National Grid would be rewarded with a 3 percent “bonus” on all such purchases for an added cost of approximately $3 million per year. The Division of Public Utilities and Carriers strongly objected to this provision, saying it “could find no justification for the incentive payment” in a situation in which the company would be fully reimbursed for all its costs and overhead in conjunction with such purchases.

Why does National Grid need a bonus for doing what it should be doing anyway? Good question! National Grid is a publicly regulated utility. Under current Rhode Island law, all utilities, including National Grid, are already guaranteed a profit. And, to no great surprise, British-owned National Grid almost always makes a profit in Rhode Island. To add insult to injury, just a week ago National Grid proposed a rate hike of more than 20 percent — a request that it conveniently kept under wraps until after the General Assembly had adjourned.

But the 3 percent add-on bonus was not the only problem with the bill. Another group of lobbyists managed to slip in a requirement that a certain amount of the electricity must come from solar facilities — rather than wind power — located within Rhode Island. Yet according to the University of Rhode Island, we are “not well positioned” for solar power because of our northern latitude and low average elevation.

By contrast, Rhode Island’s off-shore coastal areas are regarded as well-positioned for wind power. During a presentation by the same group earlier this year, the cost of Rhode Island solar energy was described as three to four times higher than wind, and nearly five times the cost of conventional power sources. The added cost of the solar mandate could easily be another $10 million per year. Like National Grid’s 3 percent bonus, all of this would be financed by National Grid consumers, year after year.

Even National Grid testified against charging ratepayers to finance uneconomical solar power projects. On March 25, during testimony before the House Corporations Committee on another bill, National Grid testified that “just because it’s a renewable project doesn’t mean it’s a good project” and that “the costs (of solar) would be extravagant to ratepayers.”

Curiously, once such costly ideas were folded into a bill containing the 3 percent bonus for National Grid, the problems — however “extravagant” they may be for ratepayers — seemed to fade away.

Simply put, the issue in Rhode Island is not whether we should encourage renewable energy; it is how, and at what cost to Rhode Island ratepayers. As presented, the General Assembly’s solution is simply too costly and generous to special interests.

In January 2006, the governor opened a major initiative to develop alternative energy. The governor’s office is now actively reviewing a number of bids for a wind farm off Block Island, and the Coastal Resources Management Council is paving the way with a special area management plan to facilitate the approval process.

Vetoing S-2849 is actually a badly needed signal that we are cutting out the “special deals for special interests.” We compliment Governor Carcieri for having the courage to stand up for Rhode Island ratepayers, who are being asked to finance yet another round of special-interest deals while giving National Grid a 3 percent “bonus” for doing what should be done anyway.

As is so often the case, the General Assembly version of “renewable” energy is overstuffed with special-interest deals that cannot be justified. Governor Carcieri, thank you for the veto!

A better way lies before us and it is easy to pursue. A few quick clicks of the delete key can eliminate the fatal flaws from this bill. We are prepared to work expeditiously with the leadership of the General Assembly and the governor to put this right, as a first order of business when we reconvene in January.

Laurence Ehrhardt (R.-North Kingstown) and Nicholas Gorham (R.-Coventry) are members of the Rhode Island House of Representatives.