Bonnie Raitt has a song that goes “turn down the lights, turn down the bed” that might have been expressing the only way to cope with the new EPA regulations regarding carbon dioxide emissions. Squarely in the sights of this new regulation is the industry that provides 44% of our electricity. What provides almost half of all generating capacity in the US, coal? You don’t have to be an economic major to realize removing half of a supply will increase demand and result in higher prices.
Since the EPA receives its authority under the Clean Air Act of 1970 which doesn’t even mention carbon dioxide how did we get here? That same question was asked in 2007 of the Supreme Court who ruled it is covered under “air pollution”. The court also asked the EPA if it would like to increase its power over citizens to produce a report to determine if it would like to regulate carbon dioxide. Over the next two years between surfing for porn and part time work for the CIA (PORN) the EPA issued its “endangerment finding” which is the corner stone for these new regulations.
Meanwhile at the White House newly elected Obama was pushing his promise to enrich donors with cap and trade. During his campaign he stated “Under my plan of a cap-and trade system, electricity rates would necessarily skyrocket”. The Democrats in the Senate followed like lemmings but the House and the people stopped it cold. Undeterred Obama put it aside to work on destroying our healthcare system. Now with more flexibility in his second term and already leveled the playing field on our formally unfair advantage of lower gas prices than the EU he is back working on electric rates.
So as not to alarm the LIVE voters (Low Information Voters Everywhere) he has sent his minions out to candy coat his original plan. The Natural Resource Defense Council has claimed it would save money overall. (Like the $2,500 we saved under Obamacare). The EPA estimates the regulations will cost somewhere between $7.3 to $8.8 billion. (Obamacare real costs, est. $.9 trillion, actual $2.8) They also stated that for every dollar of the $8.8 billion we would see $7 in health benefits. (Like Pelosi’s food stamp and unemployment rate of return)
But wait, some might say these regulations are about clean air and not cap-and trade. Who doesn’t want clean air? That is exactly what those looking to profit hope people believe. But part of this regulation is the outside the fence exemption. That’s where if you can’t meet the arbitrary goals you can purchase clean air credits from not yet bankrupt wind and solar companies. Well not directly but thru Al Gore and David Blood’s Generation Investment Management (GIM) Company.
The real cost for this regulation will be hard to ascertain until it is too late and implemented. But using the EU as a guide and our current average of 12 cents KWH we can expect a low of 19 cents to a high of 41 per KWH. Germany where electricity is now considered a luxury the cost is 35 cents. (German Electricity) Ironically Germany is using more coal than ever to keep costs down. Don’t forget that is the added cost to your bill not the additional taxes to heat and cool government building like the EPA headquarters. The cost to your local economy is summed up in the following charts.
After turning down our lights and extra covers to survive this regulation onslaught the rest of Bonnie Raitts’s refrain is a shout out to Obama and the EPA. “Lay down with me, tell me no lies. Just hold me close and don’t patronize me, don’t patronize me.”
Note: Carbon Dioxide: noun, a gas without color or smell, produced when you breathe out, or when substances containing carbon are burned.