Thanks to new analysis from NERA Economic Consulting, we now know beyond a shadow of a doubt that the Environmental Protection Agency’s politically-concocted power plan comes with a price tag few can afford.
EPA tries to downplay the costs associated with its plan saying it is “efficient” and “minimizes the cost on customers.” NERA’s analysis takes the wind out of this argument, however, as its analysis shows double-digit electricity price increases in 40 states. Worse yet, 28 of those states will face peak year increases of at least 20 percent with 14 of them facing increases of 30 percent or more. States such as Utah, North Dakota and Wyoming face exceptionally high increases with prices climbing north of 40 percent.
The analysis also counters claims that regional cap-and-trade programs would mitigate electricity price increases because under the plan the average electricity price nationally would increase as much as 14 percent.
All of these findings are bad news, but they are especially bad news for the more than 59 million middle- and low-income households who are already struggling to make ends meet. Living on less than $2,000 a month, they already devote 17 percent of their budgets to energy costs. As electricity costs rise, so does the necessity for these families to choose between keeping the lights on and paying for groceries.
With prices projected to soar so high and the financial devastation millions of Americans will feel – how can the president and his bureaucratic D.C. friends not recognize their power plan is a step in the wrong direction for American progress?
To top it all off EPA’s power plan does nothing to advance its goal of reducing global greenhouse gas emissions despite putting enormous fiscal pressure on consumers and businesses. Policymakers, regulators and elected officials across the country recognize this plan is all economic pain and no environmental gain.
That is why so many are rightfully opposed to letting EPA encroach on states’ rights and dictate how each state regulates emissions. Twenty-seven states, 24 national trade associations, 37 rural electric cooperatives, 10 major U.S. companies and three labor unions are suing to stop implementation of the rule. They’re not doing so for fun. They’re doing so because they know this rule has real costs few of us can afford.
As the president prepares to take the stage at COP21 to discuss climate pacts, world leaders should take note of the facts presented by NERA’s analysis and the widespread opposition the president’s plan is drawing before committing their own countries to similar economic and political peril.
Laura Sheehan is the Senior Vice President for communications at the American Coalition for Clean Coal Electricity.