New market information indicates that the Environmental
Protection Agency’s war on energy waged through an onslaught of new rulemakings
to limit emission of CO2 is going to be expensive for American households and
businesses. Critics of the unilateral rulemaking efforts of the EPA have
predicted that energy costs will increase due to new government regulation,
while administration officials, environmentalists and other supporters of the
new EPA rules have argued the costs will be minimal.
The market is starting to speak, and the news is not good.
Peter Glaser, who has been tracking the EPA rulemaking in Washington and who
testified to the Michigan Legislature earlier this year on this issue, reports
that Louisville Gas & Electric has filed for a 19 percent rate increase by
2016 to pay for the upgrades required by the new EPA regulations. PJM
Interconnection, a FERC approved regional transmission organization that serves
13 states and the District of Columbia, has had to pay in market auctions $2
billion to $3 billion just in capacity costs for a one year period (2014-2015).
This was attributable to the new EPA regulations, and two and a half times more
than analysts had predicted.
Any illusion that the EPA’s heavy-handed regulation of CO2
will not be costly to consumers is quickly being dispelled in the market place.
An increase in energy costs could not come at a worse time for the American
economy, with unemployment numbers being reported today that indicate the
national unemployment rate is headed back up and now stands at 9.1 percent.
Americans who have shivered through one of the coldest springs in recent
history should be mindful of what the government’s ideological war against
global warming is costing them in terms of less discretionary money to spend in
their monthly budget and the loss of more U.S. jobs.
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