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May 23, 2012

As Obama Promised: Energy Prices to Soon Skyrocket

Topics: Political News and commentaries

... and by skyrocket, we're talking about going from $16 per Megawatt to as High as $357 per Megawatt, thanks to the regulatory assault on the coal industry by Obama's EPA.

But we can't say he didn't warn us:

And what he failed to do under Cap and Trade (it couldn't get through Congress), he's having the EPA do by regulatory assault.

According to Phil Kerpen at Fox News (via Nice Deb), the market-clearing price for new 2015 capacity will be eight times higher than the price for 2012, and those numbers are not computer models, 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.
And the effect will be devastating to most of America's families:
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.

As Kerpen makes clear in his piece, America's only hope is for Congress to step in and stop the EPA's regulatory assault on the coal industry, otherwise the economy and American life as we know it will cease to be. And the Senate will have an opportunity to do something in the next couple of weeks:
The vote is on the Inhofe Resolution, S.J. Res 37, to overturn the so-called Utility MACT rule, which the EPA itself acknowledges is its most expensive rule ever.

This vote is protected from filibuster, and it will take just 51 votes to send a clear message to Obama that his War on Coal must end.

Given the disastrous effects that we are faced with, it's urgent that you act immediately by going to www.WarOnCoal.com for information on how to contact your senators on this crucial issue. A sample letter is provided at the link, each letter is individually addressed to each official, and the letters are private. The entire letter writing process takes only a minute or two.

Posted by Richard at May 23, 2012 10:43 AM



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