An analysis of the cap-and-trade bill pending in the U.S. Senate by Missouri's utilities and electric cooperatives concluded that the legislation - if passed in its current form - would mean steep rate increases for Show-Me State residents.
According to the study, the state's ratepayers can expect their electric bills to jump 12 percent to 50 percent by 2012, if senators pass House Resolution 2454, which caps carbon dioxide emissions and establishes a system for trading and buying emissions allowances.
By 2020, average electric rates in Missouri could soar 25 percent to a staggering 77 percent if a costly cap-and-trade system forces utilities to switch to natural gas from coal - the Show-Me State's primary energy source.
The Missouri Public Utilities Alliance and City Utilities of Springfield spearheaded the cost analysis after the U.S. House of Representatives passed HR 2454 - also known as the American Clean Energy and Security Act or the Waxman-Markey bill - in late June, said Floyd Gilzow, MPUA director of public affairs.
Missouri's three investor-owned utilities - Empire District Electric Co., Ameren Corp. and Kansas City Power & Light Co. - and the Association of Missouri Electric Cooperatives also participated in the study, which appears to be the only one of its kind in the country, Gilzow said.
Letters highlighting the study's findings and the utilities' recommendations were sent to every federal lawmaker and signed by the respective executives, including CU General Manager John Twitty and James Jura, CEO and general manager of Springfield-based Associated Electric Cooperative Inc.
Maria Speiser, a spokeswoman for U.S. Sen. Claire McCaskill, D-Mo., said in an e-mailed statement that Missouri's junior senator has some reservations about the bill.
"Sen. McCaskill recognizes that climate change is a serious problem that must be addressed, but she won't support a bill that unfairly passes the costs of fixing it to Missourians and their businesses," the statement read. "People in Missouri have no choice but to be dependent on coal-based utility companies. She will be paying close attention to how families and small businesses will be impacted."
Read SBJ's Sept. 14 issue for more on the cap-and-trade issue.
Reader Comments
Posted: Friday, September 11, 2009
Article comment by:
Nora Marie
I agree with Carol. This bill has been estimated by the U.S. Department of Energy and the EPA to cost the average family 10 cents a day, and the allowances avoid utility bill increases.
Furthermore, we have a lot to gain economically from this bill. A study by the University of Massachusetts found that the clean energy bill would create over 35,000 new jobs for the state of Missouri alone, when coupled with the stimulus bill. It's up to Senator McCaskill to see that this bill is in Missouri's favor--it includes the investment we need to develop sources of energy other than coal, and the allowances to make those other energy sources affordable. Senator, don't let the utility companies sway you: Missouri needs your vote in favor of the clean energy bill.
Posted: Wednesday, September 09, 2009
Article comment by:
Carol
The study was done by utilities - what do you expect? The current bill passed by the house actually has lots of allowances (= $)to help Mo's energy consumers transition. There are 64 million allowances (the bill sets these allowances at a minimum of $10 each) that will go directly to Missouri for energy consumers through local distribution companies, renewable energy, and adaptation. There are lots more allowances on the federal level to help low-income energy consumers adapt as well. learn more here: http://www.wri.org/stories/2009/08/climate-change-legislation-myths-and-reality
