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You are here: Home Energy news Traditional energy Local electricity providers expect customer costs to go up

Local electricity providers expect customer costs to go up

Saturday, 22 August 2009 16:26 energy

Local electricity providers expect customer costs to go up if a proposed federal cap-and-trade climate legislation passes the U.S. Senate without changes.This summer, the U.S. House of Representatives passed the American Clean energy and Security Act of 2009, which has a number of provisions to limit carbon emissions and global warming.

Among other things, it requires electric utilities to meet 20 percent of their electricity demand with Renewable energy and energy efficiency by 2020. It also sets up a cap-and-trade system in which carbon emitters must buy allowances for increasingly large portions of the Carbon dioxide they release. Allowances are permits for the discharge of a ton of carbon dioxide each.

My energy bill should not increase because TX taxpayers built new nuclear reactors when others refused; however, TX deregulated its energy market to increase consumer prices. Hence, instead of TX benefiting, others like CA did with resulting lower prices for them.

Expenses from buying allowances and upgrading facilities to be more efficient are expected to be passed on to consumers.

The Senate must now consider the bill, and could change it.

“We understand that the estimates that came out of the legislation before amendments felt like we would be looking at 20 percent (cost increases),” said Lance R. Adkins, general manager of Curry County’s Farmers Electric Cooperative Inc.

The 20 percent rise could happen as early as 2013, he said.

Under the current bill, the federal government would provide 80 percent of the needed allowances in 2012, meaning the electricity providers would only pay for 20 percent. However, Adkins said the 80 percent is calculated using 2005 emission measurements.

That means they don’t take into account the past four years of growth, he said, so providers will need to buy more allowances than it would appear, driving up the cost to consumers more quickly.

Everyone will see higher energy rates for electricity, and everything that uses energy for production, transportation, or any service that uses energy. The Cap and Tax bill will put an enormous burden on our already strained economy.

There's an international energy market, this Cap and Tax bill will raise energy prices for everyone. That's not all:

Every product or service that uses energy, is shipped, marketed or used with energy, will increase in price. The so called Clean Energy Bill will hurt our strained economy and drive us further into recession. The bill means more poverty, fewer jobs, higher prices and less economic activity.

Why not end the 27 year ban on offshore oil and gas exploration and production to help us all enjoy lower energy prices?

It's been my experience that no utility companies have ever needed an excuse to raise rates; more than likely they have needed regulators to keep the rates within reasonable versions of capitalism and historical experience with ENRON should be enough to remind those who may have forgotten about greed as a factor. Selective ignorance such as preached by trolls and big oil fixated runts & ranters ought to be disregarded

It's been my experience that the government, state/local/federal, never needed an excuse to raise my taxes either. You don't think that the government is the greediest of all?? Power, control. Come on... AND this is going to cripple not the just US citizens directly with higher prices for energy, and EVERYTHING else that requires energy to produce. It will cripple our entire country's edge in the world. Companies will move in mass to countries where they don't have to comply to the outrageous demands and higher expenses (taxes and cost of doing business). Thus, not only will everything cost more, there will be fewer jobs for people to afford the higher prices. Mostly labor jobs and lower middle class jobs will disapper. Nice, helping the poor. I agree we need to invest in finding other ways to produce energy. The private sector will do it, if there is a profit. All companies exist for a profit, and thus the innovate.

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