The U.S. House of Representatives passed the American Clean Energy and Security Act of 2009 on June 26. The Senate is currently debating their own version. It is a very important time for Tri-County EMC members to fully understand this bill’s impact on affordable electricity.
A major component of the ACES bill is "cap and trade," considered by many industry experts to be tax legislation cloaked in the promise of environmental improvements and energy independence. Under "cap and trade", emission levels of carbon, primarily carbon dioxide (CO2), would be capped and an auction system would be established for "trading" carbon credits. As carbon limits increase each year, utilities would be forced to purchase more credits. The impact would dramatically increase costs for electricity.
What are the costs of "cap and trade?" Many experts feel the program could drive up electric rates 30 or 40 percent. The Heritage Foundation, a conservative think tank, says the measure could increase the annual electric bill of a family of four by $1,870.
Beyond reducing emissions, the point of the "cap and trade" program is to increase energy prices so that consumers use less electricity. But these price increases will have far-reaching impacts. Electric costs to process food, refine gasoline, and manufacture goods will increase, and these added costs will be passed on to consumers. Facing increased costs to operate, employers may be forced to reduce employees or defer adding jobs at a time when our economy needs to have jobs created to further recover. Worse, manufacturers may seek to locate factories outside of America to find more competitive energy prices.
So are the costs of a cap and trade program worth the potentially staggering impact on our economy? The stated goal by the current administration of a cap and trade program is to reduce carbon emissions, and thereby reduce the impact of "green house gas" on global warming. But scientists who oppose and support the measures agree that the impact of even an aggressive cap and trade program would reduce the earth’s temperatures by only a paltry 0.07 degrees Celsius by 2050. And several European countries with similar programs have actually seen carbon emissions increase in the last five years.
The majority of Georgia’s delegation understands the impact of cap and trade. All but four of Georgia’s representatives voted against ACES and both senators oppose such a measure. But it is important for all of Georgia’s electric consumers to understand the threat a cap and trade program poses to affordable electricity and the state’s economy. Watch for additional details here in Current Lines or visit ourenergy.coop to learn more about how you can make a difference. <<
