Cap & Trade unfair to cooperative members – $277 more in annual electric bills, & gasoline or other fuel costs to skyrocket as well

The compromises made by Rep. Henry Waxman to ensure committee passage of the American Clean Energy & Security Act of 2009 are biased against consumers of electric cooperatives & municipal utilities. Some free emission allowances were added in the amended bill, but the formula to determine who receives them heavily favors merchant, for-profit generators, primarily investor-owned utilities (IOUs).

So, even though all three types of Ohio electric utilities use coal for the majority of their power generation, it is likely IOUs will pay less than cooperatives toward reducing carbon emissions. As rural consumers we’re at a disadvantage already, because we average higher electric use than IOU &municipal customers, but now we’d be penalized even more. Based on an estimate of $50 per ton of carbon in the allowance auction, the total cost for a cooperative member using 1,200 kWh is about $277more per year. That’s $57 to $129 more per year on your electric bill than your IOU neighbor’s bill.

For more information about Co-op Owners for Political Action® group, ACRE® or Our Energy, Our Future™ please contact Nanci McMaken at nmcmaken@pioneerec.com.