Is Your Electric Bill Going to Sky Rocket? Electric Rates Going Up?

By Energy Consultant • November 24th, 2011


Are Electric Rates Heading for the Stratosphere?

Click Here for Video Obama and why electric rates will go up

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I recently saw on TV that electric rates may go up next year. The idea is that there have been laws in effect for the EPA to force coal powered electricity plants to retro fit their equipment. Well, the older plants need this. This necessarily means that costs will go up. No one actually knows how much. There are two main arguments, each diametrically opposed in viewpoint. Let us consider them.

President Obama’s point of view:

We have health concerns with older coal plants. They spew mercury at high levels into the atmosphere. The wind can carry mercury and other pollutants across state lines. These pollutants hurt citizens in the following ways. First there is a higher incidence of asthma and COPD in places near to old coal plants. Children and the elderly are especially at risk. This means that there is a financial cost anyway, but it is born by the young and old.

The mercury that is released by the old style coal plants is a powerfully dangerous chemical. It especially hurts children. It causes mental disabilities, and therefore a lifetime of costs for the young that are affected. This is not a guess that this is happening. This problem has long been studied, and the effects are known and not disputed.

These old coal fired plants were scheduled long ago to re-tool for efficiency, and pollution worries. This has not happened. Why not make it happen? This is not a political issue, it is a human issue. We are killing and maiming people every day. Why don’t we protect the young, old and weak? Why don’t we protect ourselves?

Authors comment: The issue is for health safety which the country is moving towards with extra taxing of cigarettes for instance, and working toward a health care system that is not financially broke. Brain damage is a life long problem that is completely avoidable as a problem related to old coal power plants. The fear is that the electric rates will sky rocket, but could that be avoided? One reason they could sky rocket, is that the electric companies have made no plans for many of the plants. Yes, some have, and they are being implemented anyway. But, some are not.

If all these plants go offline at once, then we are saddled with a problem of supply. This too could hurt Americans. Why do we need to force all the change at once? This may not be necessary. Keep in mind that at some point these old plants will break down and have to be replaced anyway. Why not now? Well, a schedule could be used, where a certain amount of coal fired electricity plants would be replaced yearly let’s say. This of course would need to be done in a way so that the energy lobbyists don’t pay off congress to set the issue aside again, as has happened over and over for years.

The Electric Companies Point of View:

I do not see how the electric companies are in a position to argue against the clear health risks that at least mercury poses. Their argument centers on money. Retro fitting a coal fired electricity plant costs money. If done all at once it could very well cause a nightmare scenario. This scenario includes shuttering the coal fired plants all at once. This having the negative effect of lowering available electricity. This causes blackouts. This also causes electricity spikes. Especially for people on a month to month electricity plan this would be a disaster.

Even if the costs of upgrading coal fired plants to a newer plant or a retrofitted plant would in the end be born by the consumer. The upfront cost would be born by the electricity provider. That could put a huge dent in their pocketbooks. Some electric companies may not have huge sums of money available for this task. The electric companies see this problem not as a health issue, but as an economic one. Some even see it as a political one, government versus big business. Not all companies are fighting change and upgrading it should be noted.

Editors Note: Each side in this debate has strong reasons for what their point of view is. My personal point of view would be to realize that both sides have important concerns. Yet, why not merge them both together and find ways the up front costs are not impossible for the remaining electric companies? Why not spread the timetable out, and not allow political wrangling to stop a needed process?

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