Get ready for electricity prices to “necessarily skyrocket”

posted at 10:30 am on June 12, 2011 by Ed Morrissey

Have you had a lot of fun watching the price of gasoline shoot out of sight this year at the pump?  That will be just the appetizer.  Thanks to new regulations from the Obama administration, power companies will shut down a significant number of coal-fired plants by 2014, and without any other reliable sources of mass-produced electricity, consumers will see their bills go up as much as 60% (via Instapundit and Newsalert):

Consumers could see their electricity bills jump an estimated 40 to 60 percent in the next few years.

The reason: Pending environmental regulations will make coal-fired generating plants, which produce about half the nation’s electricity, more expensive to operate. Many are expected to be shuttered.

The increases are expected to begin to appear in 2014, and policymakers already are scrambling to find cheap and reliable alternative power sources. If they are unsuccessful, consumers can expect further increases as more expensive forms of generation take on a greater share of the electricity load.

You won’t just pay more to the utility company, either.  The Chicago Tribune runs the math on public-sector cost increases in just their city:

What analysts know is that a portion of ComEd bills that pays electricity generators to reserve a portion of their power three years into the future will increase more than fourfold. That would translate into increases of $107 to $178 a year for an average residential customer in ComEd’s territory, starting in 2014, according to calculations by Chris Thomas, policy director for consumer advocacy group Citizens Utility Board.

In 2014 those so-called capacity costs are expected to add approximately $2.7 million over the previous year to electricity bills in Chicago Public Schools, $3.3 million for the Metropolitan Water Reclamation District and $5.4 million to the city of Chicago, according to an analysis by Tenaska, aNebraska-based power development company that wants to develop a coal-fed power plant in central Illinois that would meet stringent regulations because it would capture and sequester emissions.

It’s the EPA gift that keeps on … taking.

On the other hand, we can consider this a rarity — an Obama promise kept:

Obama told the Chronicle:

The problem is not technical, uh, and the problem is not mastery of the legislative intricacies of Washington. The problem is, uh, can you get the American people to say, “This is really important,” and force their representatives to do the right thing? That requires mobilizing a citizenry. That requires them understanding what is at stake. Uh, and climate change is a great example.

You know, when I was asked earlier about the issue of coal, uh, you know — Under my plan of a cap and trade system, electricity rates would necessarily skyrocket. Even regardless of what I say about whether coal is good or bad. Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.

They — you — you can already see what the arguments will be during the general election. People will say, “Ah, Obama and Al Gore, these folks, they’re going to destroy the economy, this is going to cost us eight trillion dollars,” or whatever their number is. Um, if you can’t persuade the American people that yes, there is going to be some increase in electricity rates on the front end, but that over the long term, because of combinations of more efficient energy usage, changing lightbulbs and more efficient appliance, but also technology improving how we can produce clean energy, the economy would benefit.

If we can’t make that argument persuasively enough, you — you, uh, can be Lyndon Johnson, you can be the master of Washington. You’re not going to get that done.

Even without cap-and-trade — or perhaps more accurately, even with a backdoor carbon tax through regulatory adventurism — Obama kept his promise to have electricity rates skyrocketing, and putting the burden on consumers, business, and taxpayers.  Who said that every Obama promise comes with an expiration date?

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2 3

bayam on June 12, 2011 at 2:13 PM

Socialists are wrong.
Preeminent Socialists are still wrong.

Slowburn on June 12, 2011 at 2:19 PM

The parts of government we have gotten rid of include, but is not limited to (Wikipedia, YMMV):

1.Agriculture Adjustment Administration – Ruled unconstitutional in 1935.

2.Board of Economic Warfare – Abolished by the President, 1943.

3.Board of Tea Appeals – Abolished in 1996 by Congress.

4.Committee on Public Information – Abolished by the President, 1919.

5.Foreign Economic Administration – Abolished by departmental order, 1943.

6.Federal Theater Project – Canceled by Congress in the budget, 1939.

7.Office of War Information – Ended 1945 by Congress and the President.

8.Reconstruction Finance Corporation – Ended by Congress 1948.

9.United States Information Agency – Ended new production 1999, continues broadcasting.

10.War Production Board – Abolished by the President, 1945.

11.Works Progress Administration – Ended by Congress in 1943.

And don’t forget the removal of the National Bank back in 1832… the equivalent of our modern Federal Reserve.

The ways to get rid of government are many and varied. Some of these were defunded FIRST and then abolished via legislation, second… if you can find a way to see it violating the Constitution, then you can get rid of it via the court system.

No Congress can tell a later Congress what to spend money on. There are only a handful of Constitutionally required obligations to be met: the rest are if Congress wishes to fund them.

Each of these paths take the will and dedication to do it.

Currently those we elect lack that will.

We must change that and our view of government as ever-lasting, ever-ratcheting larger before you get to smaller government. I’ve had it with always fund it ratchet Republicans who accept every increase in size, scope and power of government as permanent. That has enabled our government to go from a necessary evil to a pure evil. Now it is we who must demonstrate the will not to vote for those who will not dismantle this creation of ours before it dismantles our society and our Nation.

ajacksonian on June 12, 2011 at 2:20 PM

This will be just another factor for a company to consider when they decide which country in which to build that new manufacturing plant. It’s amazing how little Bammie can rail against electrical power generation and they excoriate corporations for exporting jobs.

The socialism will continue until the economy improves.

slickwillie2001 on June 12, 2011 at 2:20 PM

Under my plan of a cap and trade system, electricity rates would necessarily skyrocket.

How predictable.

Finally, a politician actually delivers on one of his promises, but does it it make people happy???

/

RedPepper on June 12, 2011 at 2:36 PM

And how do you explain the complete lack of economic armageddon when the airlines failed for bankruptcy?

I’m willing to bet the airline industry employs vastly more people than the auto industry, taking into account the airlines themselves, airports, rental cars, hotels and restuarants where the airlines “won’t be flying anymore becuase they’re bankrupt”, suppliers, etc.

BobMbx on June 12, 2011 at 1:50 PM


They were bailed out by President Bush

The terrorist attacks of September 11 crippled an already financially troubled industry. To bail out the airlines, President Bush signed into law the Air Transportation Safety and Stabilization Act, which compensated airlines for the mandatory grounding of aircraft after the attacks. The act released $5 billion in compensation and an additional $10 billion in loan guarantees or other federal credit instruments.

Total Cost: $18.6 billion in 2008 dollars

What happened afterwards?

The Chrysler and airline bailout plans had a commonality: stock warrants. A provision inserted into the ATSS Act, which allowed the Treasury to purchase stock at below-market prices from any airline receiving a loan guarantee, allowed the Treasury to earn money. Reports varied on the total net profit, ranging from $141.7 million to $327 million. The loan guarantee program suffered one loss of about $23.2 million when ATA Airlines filed for bankruptcy protection.

SgtSVJones on June 12, 2011 at 2:49 PM

Using Roku, I can beam any of his shows to my TV anytime I want (starting September). Dynamite.

petefrt on June 12, 2011 at 12:10 PM

What’s the difference between ROKU and TIVO?
PS: Roku sounds like a Dragon Ball Z character.

mizflame98 on June 12, 2011 at 2:52 PM

By saying it is “made up” you are offending those who want to consider that, for no good reason. You need to be able to win the argument for your candidate regardless of the test the person you are arguing with is using.

GaltBlvnAtty on June 12, 2011 at 2:00 PM

LOL…mitt can’t win the South therefore he is unelectable. his poll numbers in GA show Obama beating him If mitt loses GA he is unelectable. I don’t care what the next 17 months bring I got a poll showing obama beating Mitt in GA therefore he is unelectable. The GOP can’t afford to lose GA’s 16 EV therefore Mitt is unelectable. Prove me wrong that mitt in unelectable……If Mitt loses GA that means he also loses VA and NC and if GA is a battleground state than Obama wins Mitt is unelectable.

see how easy it is to use a poll to prove someone is unelectable? It is the same as asking someone when they stopped hitting their wife. Palin or mitt’s eectablibity will not be known until you see how they run thier campaigns, how the people respond to the messages they break, to the debates they have, to the amount of money thay raise. Anyone that looks at “electabilty” at this stage of a election cycle are brainwashed people that have no knowledge of elections or campaigns or for that matter marxist PR.

unseen on June 12, 2011 at 2:55 PM

We’ll soon be dark as North Korea.

Dhuka on June 12, 2011 at 2:59 PM

I lived there before and I guess I can do it again.

FUBO

Key West Reader on June 12, 2011 at 12:06 PM

I really have you in my prayers friend.
This is such a terrible time for many.
Us included.
Even though the cattle market is high, it’s hard to climb out of a hole of a decade of prices that don’t recoup your expenses, i.e. high fuel costs etc.
That’s why the hubby decided to drive truck around here.
But even that is defined by the govt.
Load restrictions over all the roads, permits, fees, low sulfur diesel causing horrendous problems that cost lots of $$ to deal with, high insurance fees,top that off with the railroads not delivering their trains on time as promised & holding up the loads of wheat, corn, sunflowers, etc that could be hauled.
Then you’ve got DOT & cops swarming all over your a$$ trying to get you for something, anything.
People have been moving here to my area in SW ND buying cheap houses & eventually getting on welfare.
Bcs it’s cheaper in some ways to live here & the crime is almost nonexistent etc.
I really pray things work out for you.

Badger40 on June 12, 2011 at 3:03 PM

I already pay roughly $350 per month in the winter for an average house, about $250 in the summer.

Between that, and the price of gas (much of which is in taxes), it’s getting very tough to make it. (I pay for my own lousy health insurance, too, so add that in.)

Gee, if I can’t afford to go anywhere and I have to stay huddled under a blanket and it’s all by design, I’m going to start feeling like my president has it in for me.

//

capitalist piglet on June 12, 2011 at 3:19 PM

Anyone that looks at “electabilty” at this stage of a election cycle are brainwashed people that have no knowledge of elections or campaigns or for that matter marxist PR.

unseen on June 12, 2011 at 2:55 PM

So, if you are speaking with someone, an upcoming voter, who wonders if your candidate can be elected, rather than explaining why Sarah Palin can be elected you will unbrainwash him, educate him regarding elections and campaigns and marxist PR, and then trust that he will withdraw his question about whether Sarah Palin can be elected? Or, perhaps, you will just let this upcoming voter go because of his question? You could, instead, say something like: Well, of course she can be elected, because . . . , and list all of your good reasons.

GaltBlvnAtty on June 12, 2011 at 3:29 PM

What’s the difference between ROKU and TIVO?

mizflame98 on June 12, 2011 at 2:52 PM

Roku streams internet content from your computer from your router to your TV receiver, so that internet content is played over your TV. If you have a wireless network, Roku transmission from router to TV is wireless. If you don’t, you can use a cable.

With Roku, for example, you can play movies on your TV that are streamed to your computer (or other internet device) by Netflix, Amazon.com and others.

Tivo records/replays TV content, whatever comes through your Tivo device to your TV.

Most Roku channels use menu formats, so that (like Tivo) you can choose to watch any particular content at any time you want. But unlike Tivo, you don’t have to opt to download them first. You stream them over the internet any time you want. Instant gratification. It’s terrific.

petefrt on June 12, 2011 at 3:35 PM

We will get rationing for electricity like gas and food was rationed during WW2, because demand will exceed supply. Are you on the correct list, comrade?

Kissmygrits on June 12, 2011 at 3:45 PM

I don’t care if the GOP nominates a manatee for president in 2012. I am voting for it.

capitalist piglet on June 12, 2011 at 3:49 PM

Obligatory – the GOP IMPEACHED Bill Clinton for lying about sex.

HondaV65 on June 12, 2011 at 12:01 PM

No, they impeached him for lying under oath to a Federal Grand Jury.

HTH.

Del Dolemonte on June 12, 2011 at 3:50 PM

Well, this just sucks.
This man must be stopped. Come on GOP, grow a pair.

carbon_footprint on June 12, 2011 at 4:21 PM

Our rates on electricity shot up dramatically in January in PA when the PUC lifted the cap. We also experienced a lengthy frigid season this past winter.

What I pay for electricity for my humble all-electric townhouse is absurd. I do not know how families are coping with the multiple attacks on their budgets with the increase in the cost of gasoline, food, and electricity in our state.

The poor and working poor are being subsidized, but what is happening to the middle class?

The ObaMao economy is intentionally destroying our once prosperous country.

onlineanalyst on June 12, 2011 at 5:01 PM

Truly this socialist enviro-maggot needs to be removed from power. I hope the third-party conservatives are paying close, sober attention. Romney, Pawlenty, Daniels (when he was considering a run) — none of them have ever toyed with the idea that jacking up energy costs would be a good and worthwhile policy, or even a regrettable but necessary result of responsible policy.

This leftist piece of shiite stands alone in his destructive mindset. Retire this rotten prick in 2012.

Jaibones on June 12, 2011 at 5:05 PM

Truly this socialist enviro-maggot needs to be removed from power. I hope the third-party conservatives are paying close, sober attention. Romney, Pawlenty, Daniels (when he was considering a run) — none of them have ever toyed with the idea that jacking up energy costs would be a good and worthwhile policy, or even a regrettable but necessary result of responsible policy.

This leftist piece of shiite stands alone in his destructive mindset. Retire this rotten pr!ck in 2012.

Jaibones on June 12, 2011 at 5:06 PM

Remember when ObaMao was boosting the thermostat in the WH because he wanted the hothouse temps that his Hawaiian bloodstream demanded? Then he could run around in shirt sleeves and his wife could sport sleeveless outfits to show off those toned arms.

onlineanalyst on June 12, 2011 at 6:18 PM

Frame it as a tax hike on the middle class and the poor who can least afford it.

scotash on June 12, 2011 at 6:42 PM

It’s not just the CO2 regulation, it’s also the cost of coal is being pushed upward by permit denial and other regulatory schemes.

It’s all by design, of course. We’re just bitterly clinging to the past. Embrace your socialist future, serfs.

hillbillyjim on June 12, 2011 at 6:43 PM

In a more sane world, you’d admit that man-made global warming cannot be definitely proven or disproven based upon today’s science. And if you’re running the country the way you run an effective business, the only rational approach is cost-benefit analysis as to what action should or should not be taken.

bayam on June 12, 2011 at 1:29 PM

Exactly.

Which has been Mitt Romney’s position has been all along. Here’s what he had to say about that in from his book:

Even extreme mitigation measure taken by the US and other developed nations will have no appreciable effect on slowing the rate of greenhouse gas emissions. Massive spending–or even worse, borrowing for emission reduction–would only make us less able to remediate the effects of warming later.”

He wraps up his thoughts with his “no-regrets” stance and defines this as “taking action only when doing so is also consistent with our objective of reducing our dependence on foreign sources of oil. Internationally, we should work to limit the increase in emissions in global greenhouse gases, but in doing so, we shouldn’t put ourselves in a disadvantageous economic position that penalizes American jobs and economic growth.”

Conservative Samizdat on June 12, 2011 at 6:46 PM

In a more sane world, you’d admit that man-made global warming cannot be definitely proven or disproven based upon today’s science. And if you’re running the country the way you run an effective business, the only rational approach is cost-benefit analysis as to what action should or should not be taken.

bayam on June 12, 2011 at 1:29 PM
What gobbledegook claptrap elitist smug backward thinking: So, you admit that mmglobalwarming is not subject to proof, but then you are going to run the country doing a cost-benefit analysis, which itself is delusional model crap-in/crap out meaningless slop. Your genius will allow a cost-benefit analysis upon which to control previously free people, even though you admit that there are no tools to determine whether or not there even is a problem.

GaltBlvnAtty on June 12, 2011 at 7:07 PM

Typical Obama – kill jobs, destroy the energy sector while the country is suffering chronic unemployment worse than the Great Depression.

http://www.examiner.com/conservative-in-spokane/obama-s-epa-regulations-to-kill-jobs-cause-skyrocketing-energy-costs

jdawg on June 12, 2011 at 8:46 PM

Anyone that looks at “electabilty” at this stage of a election cycle are brainwashed people that have no knowledge of elections or campaigns or for that matter marxist PR.

unseen on June 12, 2011 at 2:55 PM

And anyone who doesn’t consider electability is simply a groupie who only cares about revenge for their favorite celebrity. They don’t care to win a stupid election, it’s all about who, did what, to whom, and how to get even.

If this election isn’t about getting rid of Obama it is about nothing.

Electability is all there is to care about.

petunia on June 12, 2011 at 9:09 PM

petunia on June 12, 2011 at 9:09 PM

electibility is the only positive your candidate has and that only because he has not engaged in the campaign yet. Just because it is the only thing your candidate can run on doesn’t mean it is important. In fact all it means is that it is a mirage

unseen on June 12, 2011 at 9:14 PM

If this election isn’t about getting rid of Obama it is about nothing.

Electability is all there is to care about.

petunia on June 12, 2011 at 9:09 PM

Sounds like revenge.

I thought you said a quality person does not need revenge?

Roy Rogers on June 12, 2011 at 9:23 PM

We need to post these links and articles without comment and build a steady record over the next 17 months to our squishy friends.

Post on facebook, send emails, etc. We can do our part.

PappyD61 on June 12, 2011 at 9:38 PM

Obama 2012 stickers on EVERY gas pump.

Roy Rogers on June 12, 2011 at 11:21 PM

Obama 2012 stickers on EVERY gas pump.

Roy Rogers on June 12, 2011 at 11:21 PM

I leave a yellow sticker every time I get gas. Handwritten each time it reads: “$4 gas? Thanks, Obama.”

GaltBlvnAtty on June 12, 2011 at 11:41 PM

And we say that Palin is stupid and unelectable…

and Obama is smart and will surely win by 2012!

WAKE UP AMERICA! THE SHIP IS SINKING*!!!

*Example: China’s accusing us that US is defaulting from its debt…. only in the watch of Obama!

TheAlamos on June 13, 2011 at 1:14 AM

O’s crony capitalism and his links to destroying the coal industry:
http://www.americanthinker.com/2011/06/crony_capitalism_and_obamas_anti-coal_crusade.html

onlineanalyst on June 13, 2011 at 8:51 AM

I hear that Obama is going after Govt waste. Evidently just now thought it would be a good idea. Are we wasting anymore like this?

“In a mind-boggling example of government corruption, billions of dollars flown to Iraq for post-invasion “reconstruction” have vanished and may never be recovered.

Bundled in chunks of $100 bills, the cash was sent from the U.S. to Iraq in turboprop military cargo planes known as C-130 Hercules. About $2.4 billion fit in each aircraft and 21 flights made trips, transporting a total of $12 billion in American currency to Iraq by 2004…

This is simply the latest of many reports documenting the pervasive fraud and waste in Iraq … ”

http://www.judicialwatch.org/blog/2011/jun/oops-pentagon-loses-track-6-6-billion-0

To the politicians it’s just other people’s money.

Chessplayer on June 13, 2011 at 12:35 PM

Not only will our electric bills skyrocket, but so will the cost of all consumer goods as stores pass on their higher operating expenses to consumers. Workers will be out of jobs when coal plants close. Where will we get the additional power needed to plug in all those electric cars we’re supposed to buy?

GrannySunni on June 13, 2011 at 1:30 PM

I’m simply pointing out the fact that there’s no simple, obvious, or easy way to grow out of the near economic collapse of our financial system that occurred three years ago.

bayam on June 12, 2011 at 2:13 PM

Read up on the Economic conditions in the 1920s. Harding took office in a depression with large unemployment and rampant inflation. After working with Congress to pass legislation to reduce the national debt, reduce taxes, protect farming interests, and cut back on immigration, America had its largest economic boom ever.

The DEPRESSION, which featured unemployment worse than we have now, lasted a grand total of 18 months, with recovery starting 6 months after Harding’s inauguration.

History proves your post wrong…

Conservative approach: 1920s depression, lasted only 18 months and afterwards had largest economic boom ever.

Progressive approach: 1930s depression, lasted 132 months and only slowly recovered after WWII.

Which would you prefer?

dominigan on June 13, 2011 at 2:41 PM

Comment pages: 1 2 3