I’ve mentioned a few times that affordable energy is vital to rebuilding our economy.
What do I mean by that?
Well, it’s a fact that American businesses need affordable electricity.
According to Economy.com’s 2008 North American Business Cost Review, energy costs are second only to labor costs in determining the viability of a business in a given location.
So that’s why you see states like Kentucky with traditional low-cost energy doing very well at attracting manufacturing jobs. Georgia doesn’t have many coal industry jobs, but coal provides over 60 percent of the state’s electricity. As a result of the low electricity prices that coal provides, Georgia sees a significant economic impact. Other states like California and several in New England that have among the highest costs of electricity have lost industry.
How expensive is electricity in your state? Take a look at this map.
Remember, coal is a third of the price of other fuels, so it’s likely that if coal provides the majority of electricity in your state… you’ll have cheaper power and be in a better position to attract businesses.