New Analysis Underscores Power Plan’s Costly Consequences
November 9, 2015
“Energy policy needs to ensure all Americans have affordable and reliable electricity to meet everyday challenges and to help build a strong foundation of economic success. Regardless of where you stand politically, this plan fails to meet that threshold.”
Washington, D.C. – New analysis from NERA Economic Consulting shows the Environmental Protection Agency’s power plan comes with a hefty price tag that could approach $300 billion and raise electricity prices in each of the 47 states subject to the new regulation. Despite these enormous costs, the rule does nothing to prevent global climate change.
“This analysis makes it abundantly clear the president’s power plan will result in higher electricity prices and delivers a sharp wake-up call to states and consumers,” said Mike Duncan, ACCCE president and CEO. “Common sense tells us that with 27 states seeking judicial action to stop this plan from being implemented there is reason enough for EPA to take this rule off the table. Sadly, however, common sense isn’t prevailing and as result Americans’ economic well-being and livelihoods are at risk.”
Despite the fact that the president’s plan will have virtually no effect on climate change, NERA’s analysis shows that all of the Lower 48 states will see electricity price increases because of the rule. Consumers in 40 states could see double-digit electricity price increases, and 28 states could face electricity price spikes greater than 20 percent. The annual cost of at least $30 billion per year for the plan is three times greater than the cost of EPA’s Mercury and Air Toxics rule, which the U.S. Supreme Court criticized by saying, “It is not rational … to impose billions of dollars in economic costs in return for a few dollars in … benefits.”
“Energy policy needs to ensure all Americans have affordable and reliable electricity to meet everyday challenges and to help build a strong foundation of economic success. Regardless of where you stand politically, this plan fails to meet that threshold,” Duncan said.
The American Coalition for Clean Coal Electricity is a partnership of the industries involved in producing electricity from coal. Coal, an abundant and affordable American energy resource, provides nearly 40 percent of our power. By 2018, the coal-based power industry is expected to have invested more than $126 billion to develop technologies to use this critical resource more cleanly and efficiently than ever before.