Obama promised us in 2008 that under his “plan of a cap and trade system, electricity rates would necessarily skyrocket”. In 2009 the House passed Obama’s Cap and Trade Bill but fortunately it was defeated in the Senate and that was supposedly the end of it. Not so. Obama has effectively done an end around Congress with the EPA’s Utility Maximum Achievable Control Technology (UMACT) rule, also known as “Mercury and Air Toxics Standards” or “MATS.” If you happen to live in Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia or the District of Columbia your electric bill will soon arrive via the promised skyrocket. At least 4 of those states are considered “toss-ups” for the November election.
Last week the U.S. Energy Information Administration reported a shocking drop in power sector coal consumption in the first quarter of 2012. Coal-fired power plants are now generating just 36 percent of U.S. electricity, versus 44.6 percent just one year ago.
It’s the result of an unprecedented regulatory assault on coal that will leave us all much poorer.
Last week PJM Interconnection, the company that operates the electric grid for 13 states (Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia) held its 2015 capacity auction. These are the first real, market prices that take Obama’s most recent anti-coal regulations into account, and they prove that he is keeping his 2008 campaign promise to make electricity prices “necessarily skyrocket.”
The market-clearing price for new 2015 capacity – almost all natural gas – was $136 per megawatt. That’s eight times higher than the price for 2012, which was just $16 per megawatt. In the mid-Atlantic area covering New Jersey, Delaware, Pennsylvania, and DC the new price is $167 per megawatt. For the northern Ohio territory served by FirstEnergy, the price is a shocking $357 per megawatt.
Why the massive price increases? Andy Ott from PJM stated the obvious: “Capacity prices were higher than last year’s because of retirements of existing coal-fired generation resulting largely from environmental regulations which go into effect in 2015.” Northern Ohio is suffering from more forced coal-plant retirements than the rest of the region, hence the even higher price.
These are not computer models or projections or estimates. These are the actual prices that electric distributors have agreed to pay for new capacity. The costs will be passed on to consumers at the retail level.
Read the entire article here. Hat tip Fox News
Click on the link below to send a letter to your senator demanding that Obama and the EPA cease their war on coal.
The American people rejected cap-and-trade (President Obama’s plan to make electricity prices “necessarily skyrocket” and “bankrupt coal”) in one of the biggest landslide elections in history in 2010. The day after that election, Obama said: “Cap and trade was just one way of skinning the cat; it was not the only way. It was a means, not an end.”
Since then, Obama has worked overtime to act as if the cap-and-trade bill passed and to twist decades-old laws in order to bankrupt coal and drive up the price of electricity.
The lynchpin of the Obama’s War on Coal is the so-called Utility Maximum Achievable Control Technology (UMACT) rule, also known as “Mercury and Air Toxics Standards” or “MATS.” The rule requires expensive retrofits at coal-fired power plants, raising electricity prices nearly 20 percent with no environmental benefit.
The cost, according to EPA’s own estimate, is $10 billion per year. A more r
Previewealistic analysis from the national Economic Research Associates found compliance costs of $21 billion per year, with 183,000 lost jobs per year.
Worse, if the rule stands it will combine with Obama’s new greenhouse gas rules to shut down all coal-fired power plants in America, a genuine economic catastrophe that will make prices “necessarily skyrocket” and undermine the reliability of our electric grid.
The Senate will soon vote on a resolution from Jim Inhofe (R-Okla.) that would overturn the UMACT rule.
Take action now to urge your senators to stand up to Obama and to Stop the War on Coal!