• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Here Come Obama’s 'Necessarily Skyrocketing' Electricity Rates

    President Obama’s infamous words—saying electricity rates will “necessarily skyrocket” under his cap-and-trade program that would impose a costly energy tax on American consumers—are set to come true. Just ask the market.

    Although cap and trade is not law, the Environmental Protection Agency’s (EPA) backdoor train wreck of energy regulations is forcing utilities to file for significant rate hikes in years to come because of the upgrades they will have to make or the complete shutdown of older plants.

    Take Louisville Gas & Electric (LG&E), for instance. In what’s labeled as an “environmental cost recovery,” the utility says ratepayers will see their electric bills increase 19.2 percent by 2016. Why? LG&E spokesman Chip Keeling answered,

    The EPA is forcing utilities to do this. We don’t have a choice. It’s not a question of are we going to meet them. The question is when and how and how much money. We have to meet these regulations because the EPA is mandating it for us to do it. They’re forcing us to do it.

    LG&E isn’t the only one building cost increases into its projects as a result of EPA regulations. PJM is a regional transmission organization that manages the electric grid and coordinates the wholesale electricity market for 13 states and the District of Columbia. The organization conducts electricity capacity auctions for future years to meet anticipated demand, and it projects EPA regulations are going to increase capacity costs in the magnitude of $2 billion–$3 billion for a one-year period. PJM also “concluded that “60 to 80%” of the increase in generators bid costs in the May 2011 auction was due to environmental regulations.”

    As this American Legislative Exchange Council study shows, the EPA’s train wreck of energy regulations leaves a complicated and expensive mess of new requirements for U.S. power plants. A new analysis from the National Economic Research Associates (NERA) looked at just two of those regulations, the Clean Air Transport Rule and the Utility Maximum Achievable Control Technology (MACT). The study finds “Average U.S. retail electricity prices in 2016 would increase by about 12%, with regional increases as much as about 24%.”

    American households will be hit hard, as will American businesses. Producers everywhere will try to cover their higher production costs by raising product prices. As a result, consumer demand will fall, and income and employment will drop. There’s no other way to put it: These are unnecessary job-killing, economy-destroying regulations.

    Posted in Energy [slideshow_deploy]

    44 Responses to Here Come Obama’s 'Necessarily Skyrocketing' Electricity Rates

    1. Chasoo says:

      When I hear TV talking heads talking about Obama's policies and job performance I feel like throwing up. They try to rationalize the presidents actions in a way that they believe the president is trying to make this country better. But actually he's not, people better start taking notice, because Mr. Obama is purposely destroying our economy and our way of life. Socialism is already beginning to take root here in America and if this president wins re-election, it will be over for all of us. You give this amn another 4 years and he will finish the job. Our country has always been too strong for someone to conquor, but we are being conquered from within. Some people have taken notice, but not enough and I'm worried by the time enough people do take over, it will be too late.

    2. James Miller says:

      Where the hell is congress? Why are they letting the EPA legislate? They need to defund the EPA or do whatever is necessary to stop the EPA from putting in these regulations that are robbing the American people blind.

    3. Redfray, Pea Ridge, says:

      Time for a good hard push to end the EPA as we know it. Starting by cutting the money used for supporting these environmentalists. Then make EPA clean up all the out dated rules, regulations by reducing all cumbersome language, that will keep them busy for the next 200 years. Did I say something about cutting the staff in half?

    4. Bill B LC,NM says:

      This man is purposely trying to destroy our country, our economy and our way of life. When are the voters in this country going to wake up and vote this a@*hole out of office. We cannot take another four years of his (lack of) leadership. We have to repeal all of his policies and let's repeal the EPA's power. If congress won't do it where does it say they have the power to implement this. He won't be happy until we look like all of the other socialist countries in Europe and we are under the New World Order. I say do the letters F. O. mean anything to you?

    5. Dave, Deming says:

      IMPEACH OBAMA NOW!!!! If he is re elected, I will no longer be able to live the lifestyle I now live, which is just above the poverty line. I will be forced to live off the grid, out in the desert someplace. I won't even be able to afford gasoline for a generator. It will be like pioneer days all over again.

    6. CJ Michigan says:

      WAKE UP AMERICA OR THERE WONT BE AN AMERICA LEFT TO WAKE UP TOO! This obasshole is a complete failure, his policies are financially destroying our way of life, and the lives of our future family members. The economy is in shambles, unemployment is worse now than it was during the great depression,(per capita), fuel prices unaffordable unless you are rich, deficit spending OUT OF CONTROL, national debt can not be recovered in any of our lifetimes, and it is ALL on the backs of this moron's policies. He can NOT blame this mess on Bush, this is ALL him and his puppets in Congress. His people like his BS policies because of the entitlements, but what they aren't smart enough to figure out is, those programs are all funded by working taxpayers, and if people aren't working, there is NO TAX INCOME to support them and their handouts will stop! AMERICA'S GLOBAL CREDIT IS OVEREXTENDED NOW, AND THERE WILL BE NO MORE LOANS FROM CHINA, SOUTH AMERICA, SAUDI ARABIA…ECT. HIS AGENDA IS TO DESTROY THE AMERICAN WAY OF LIFE, AND IT IS UP TO THE VOTING PUBLIC TO STOP HIM!

    7. david weaver says:

      Its this Mans Agenda to Cripple this Country.When he spoke of Change what it means is Socialistic Change.When the countrys compleatly broken thats when you'll see the CHANGE.

    8. Mark Gruszecki says:

      Sarah 2012

    9. Jason, Oklahoma City says:

      I understand that any regulation leads to costs that would otherwise not be incurred. However, what are the reasons for these regulations. I am a biochemistry major, and I can tell you that many of the chemicals released by coal plants are not good for your health. While it is uncertain to what degree this is hurting people around the plant (including people possibly as far away as thousands of miles from any plant), shouldn't we implement regulations that protect the health of our family members and neighbors? Or should we just hope for the best and let these business run its course. The ironic thing is that many of these regulations don't regulate the free market. Most energy companies are government controlled monopolies. With some states as the exception, most states and municipalities have one energy company. For instance, in Oklahoma, we get OG&E. This isn't the free market at work at all. So this isn't government regulating the free market. Or the introduction of socialism. If anything socialism is already present with a single monopolized company, and the government controlling this socialized system. Of course, if deregulation occurred, then that would be a different story. Either way, my point is, these regulations are not about politics, economics, or even environmental protections. Instead, they are about providing a healthy place for our families to live. Leave the politics out of it.

    10. Ann Omonous says:

      I agree with Chasoo, Obama has to go! Cap and Trade, ObamaCare, how much more do the American People have to take? The rich will only pay so much before they pack up their companies and move them out of the country. Then, the middle class will be stuck with all of the bill and no jobs to pay them with.

    11. Ronald Strou says:

      Going to solar panels,green energy,many companies will go off the grid.So this tax will be obsolete,they wont make as much money as they think.I hope this is what 1000's of companies will do,it would be a smart choice.And save alot of money.

    12. Stirling, Pennsylvan says:

      This is why the last congress pushed thru so many bills to give the EPA the ability to bypass the new congress before the past elections in November. This is the liberal green movement agenda on steroids now (backdooring the cap and tax agenda.) Anyone who is behind the green movement will never get my vote ever again.

    13. Chippy55 says:

      It's not a matter of how big he loses in 2012, the way I see it is that he either carries ONLY CA and NY, and NEVADA is iffy, that is if Harry Reid can manage to lie, cheat, and steal another election, after all, that's the only way a lot of these Liberal Socialist Progressive _______s can eke out a win.

      ELECTIONS HAVE CONSEQUENCES! This is what happens when you elect a liar who had ZERO experience in anything except being a rabble rouser Community Organizer. Axe the person next to you right now to define "Community Organizer" without using either word, and axe them how big? 3,000 people? 400? ZERO business experience, and there appears to be one whole year missing from his time at Columbia, which by the way, nobody knows how he managed to pay for any of this schooling because THE LIBERAL MEDIA WON'T DO THEIR VETTING. CANCEL ALL SUBSCRIPTIONS TO ANY LIBERAL PRINT MEDIA. BOYCOTT ALL SPONSORS OF ABC News, CBS News, MSNBC, NBC News, and CNN, and call the sponsors and tell them you are sick and tired of the Obama/Messiah can do no harm.

      300 million bin Laden followers will be hunting him down after he leaves office, let's make it sooner than later.

    14. Bobbie says:

      For an imposition on citizens to be "necessarily skyrocketing costs" without compelling reason, shows no purpose to necessarily skyrocket costs! Stop this corruption! There is evidence of fraud and no evidence of reason for necessarily skyrocketing costs.

      We deserve to expect integrity in the quality of character in American leadership. Stop this overpowering government and their allies!

    15. Pingback: Here Come Obama’s ‘Necessarily Skyrocketing’ Electricity Rates | The Foundry « BUNKERVILLE | God, Guns and Guts Comrades!

    16. tiff says:

      WOW..Looks like a perfect plan to further destroy the economy. :-/ What exactly is this supposed to help if not jobs, business etc?

    17. Jerryb, texas says:

      I agree with Chsoo,we are going the be the soaialist states of America and instead of WE THE PEOPLE it will be WE THE PEASANTS.

    18. Jersey Dave says:

      The Limousine Libs and government beauracrats don't care. They won't see any difference as they can afford it or pass it to the taxpayer for their own costs, and their buddies in the big companies and the Euro-Socialist dominated "International Organizations" (IMF, late of the maid attacker, G8, or the megabucks "seminars" is resorts around the world, and UN "Climate Change" panels headed by megacompanies looking to put competitors under by regulating them out of business and getting tax breaks for toeing the line like GM, who don't pay any taxes in exchange for "green energy" announcements and NBC shows full of favorable talking points) will get mega bucks kicked to them in exchange for a little "political contribution" love in return. They feel they are better than everyone and can do to families one paycheck away from losing it all what they do to their domestic staff. They can all go to hell, and mind their own damn business without bothering in ours.

      Ask yourself when the Democratic party last really stood up for the little guy. Was it when they responded to massive unemployment by kicking money to wall street and foreign bankers like Goldman Sachs and the European Banks? Was it when they responded to a call for more work for Americans by turning a blind eye to Illegal immigration, so they and their rich friends could get cheaper labor and drive down the payment to workers while putting American citizens out of work? Was it when the cost of everything from milk to electricity to gasoline got driven through the roof as they took crops for "biofuels" instead of food supply, and hindered drilling oil in the US (Yeah, why would we want our own oil, so much better to just trust OPEC and the big European Commodity traders to deal fairly for it) or was it when they hired a Treasury Secretary who flagrantly cheated on his taxes while raising the audit rate on average citizens through the roof? Somehow none of those seem to be sticking up for the "little guy." More like sticking it to him.

    19. Ginos' Opinion, says:

      I can only hope that the voters can understand what is going on here. The President says there are going to be bumps in the road to recovery.

      He should know, he is putting in the bumps himself.

      AEP announced that is will be shutting down 6 power plants due to these regulations at the cost of 600 power plant jobs and thousands of ancillary jobs.

    20. Angela, WV says:

      Here in WV, we just got word that our electric company, AEP will be closing several coal plants. We stand to lose 600 jobs and, yes, of course, gain higher electric bills. Yay! Thanks, Obama and the EPA!

    21. chatkat west franfor says:

      I am very disturbed at the way that our president is running our country, and making decisions that are so very gruesome like this energy bill it concerns me greatly, to the point of senior citizens that will possibly die because they won't be able to afford air conditioning or heat. It is inhumane at what he is doing now! I can't even wait until his term of office is over!!!!! And I pray to God that there is no way that he will make another term, surely people will wake up. Surely, he has done so much damage already, please america open your eyes we are going down by the count! You are being robbed, and where will it stop before it is too late, that is what concerns me he is not done yet. Is there anyone who can stop him? Our fabric is being destroyed as we speak!!

    22. TonyfromOz, Rockhamp says:

      Bean Counters at large scale coal fired plants will be doing their sums. It could just become economically more viable to close the plant down than to pay for the upgrades.

      Why close down?

      The value of their asset, the plant itself, will be worthless and unable to be sold.

      Wait for one, or some of those large scale plants to close down.

      The grid now becomes overloaded, and to prevent the cascading failure of other plants, electricity rationing will occur.

      Wait for the excuses then, and watch for the finger pointing.

      There has been a considerable ramping up of renewable power plants, namely wind power, and the U.S. now currently has 41,000MW of Nameplate Capacity just for Wind Power, the equivalent of 22 large scale coal fired plants.

      However, the actual power delivered to grids by those equivalent 22 large coal plants is four times what Wind actually did deliver during the whole of year 2010.

      On top of that, even with that ramping up of Wind Power, not one large scale coal fired power plant (1500+MW) has closed in the last three years despite that ramping up of Wind Power.

      On top of that, CO2 emissioms from coal fired and natural gas fired plants rose last year by a greater percentage than the increase in total power consumption, so not only are renewables failing to lead to a reduction in CO2 emissions, those emissions are indeed rising.

      Tony.

    23. Pingback: America’s energy starvation diet, by curtesy of the Obama Administration | JunkScience Sidebar

    24. George Colgrove, VA says:

      He's just doing what he said he would – a long time before the election! But did the left listen? Did the media report?

    25. EVELYN JOHNSON says:

      ITS NOT THE CONSUMERS FAULT, FINE ILL FIND ANOTHER WAY TO OVER COME THE GRID, KISS MY GRID!!!!!!!!!

    26. Julia, Pennsylvania says:

      Couldn't have said it better. This country was in dream-land when they elected Barak Obama, and only some ot us see the real "nightmare" his presidency has been, and how bad are his plans for this nation. None of this is coincidental or accidental. He is "knocking this country down to size" ON PURPOSE!

    27. Doug, Lexington, KY says:

      President Obama and his band of Merry Incompetents are the death-knell of America. If the House and Senate don't put an end to their attempts to ruin America, they too will be complicit in our nation's demise. The very foundation of our democratic republic are seriously eroded and near collapse — all because we the people have failed to assume responsibility for ourselves and kept alive the ideals upon which this nation was founded. May God awaken those who slumber so that we can vote these @ast@rds out for good.

    28. Pingback: PA Pundits - International

    29. Karen, Jacksonville, says:

      When the already too costly electricity goes up more how do the people who are not rich, pay their bills when they already are having trouble trying to pay it now?

    30. Pingback: Energy and Environment News

    31. Pingback: The King of Coal « Rogue Operator

    32. RightWinger says:

      Well said Chasoo. Our currency is being devalued with the printing presses non-stop, an energy policy that hinders production and exploration at home, inflationary forces on fuel and food about to explode, we are looking at a complete collapse of our society that will make the Great Depression look like a Sunday picnic in the country.

      Stock up on your board games and wax candles now before it gets too late.

    33. Pingback: Daily Dive 10 June 11 | adeliemanchot

    34. Judith Chittenden says:

      When is OUR GOVERNMENT going to start being for the people. We are at the mercy of our elected "leaders" to do what we need to be done, Not dream up more ways for the government to interfer with our day to day lives. The people in this country that have been blessed with the high end incomes better start paying a bigger amount for our government to get back into shape, after all no one can take it with them so why not help the many people who are out there working hard everyday just to put a roof over their families heads and feed them. We also need to start caring for those in our own counrty that are in need instead of helping other nations fight their own battles. How much has other countries sent to the USA to help our the huricane victims or the tornado areas of our country that have been destroyed?

    35. Pingback: Obama’s Energy Disaster Continues! « American Elephants

    36. Ben Siebert says:

      These so-called 'Train-Wreck' of EPA mandates are actually the Clean Water Act of 1973 finally coming of age. That's 38 years!! If this were a train-wreck, it would have been moving so slow even a 5mph bumper could have survived it.

      I am no tree-hugger, but I know corporate BS when I smell it. The utilities are just positioning themselves in a way that is supposed to garner good PR, when instead its a ploy so they can have an excuse to raise rates. Unfortunately, the obviously intelligent author of this article was fished in hook, line, and sinker.

      Call me a cynic, but anytime the utilities or politicians are involved, I always follow the money to see who is lying.

    37. Jbiehn says:

      Depressing.

    38. Terry Wells,Ft Worth says:

      why is it that all i here is really bad about this fool of a so called president but NOBODY IS GETTING RID OF THE DEVIL all i hear is talk talk talk but i don't hear anyone taking steps to rid us of this lying fraud of a comunist opressor,waiting for another election is too long ,and look at what the tole is on America because we are waiting ,why wait? get that ignorant aragent thing out NOW. he is destroring America is there noone in power that can get him out? or are they just scared little lambs?

    39. Marsha, FL says:

      What is being done to this country is madness. The free market is winding down to a crawl…I believe in cleaner air, and it can be done. Headway is being made by many companies, cities,and neighborohoods. However, for this administration to produce reems and reems of regulations for companies to try and make work in the 'real' world, is unattainable. And, I think it is a planned attack by those who want to see America brought to its knees. Too many Tzars and too much power bestowed to the wrong people.

    40. Pingback: Obama has failed | Pundit Review

    41. GC, Alberta says:

      The U.S. spends how much importing oil each year, and spend how many trillion on the Iraq incursion to protect oil supply? How much for for lost jobs in the gulf? and you insist you can drill your way to a higher standard of living, by using up declining resources. Do you understand economics, or are you just high on political BS. The renewable energy industry, urban renewal, modern transport, modern lighting, cogeneration, are key to providing new jobs, new skills, and diversifying your portfolio, and opportunities. Wake up America, you can be a great nation again, but you won't get there by returning to the policies that got you into to this mess, and that got Obama elected to create change.

    42. Pingback: What the mainstream media should be covering | The Daily Caller

    43. Jane Maller says:

      Obama is in over his head he has no idea what he is doing. All of his economic advisors have jumped ship like rats! Obama just does not know how to run this country, He is now trying to address jobs and the economy, 3 years later! to little to late! he should not have spent his time at the golf course or jetting all over the world making a fool of himself and embaressing America!

    44. Mark, originally fro says:

      Please flesh out the whole story. The EPA doesn't come up with regulations just for the fun of it. There will be obvious environmental consequences behind elimination of these regulations. Your choice, if you want the electricity, pay the true cost. Nobody is forcing you to use all that. Pittsburghers without regulations, as did folks in Chicago, saw its sun setting behind the smog before before dinnertime. Weirton streets were paved with soot and graphite. Folks were warned to stay indoors due to the pollution index of the day. EPA is just trying to help you and you'll live longer as a result.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×