Posts filed under Affordability

Wyoming sets coal mining milestone

This week, Governor Matt Mead announced a new milestone: Wyoming will mine its ten billionth ton of coal in May.  According to the EIA, “The Powder River Basin in northeastern Wyoming is the largest coal-producing region in the Nation, accounting for nearly two-fifths of all coal mined in the United States.”

“This is a significant achievement for our state and country. Coal mining has provided thousands of jobs in Wyoming over the last 150 years, all the while fueling America’s economy,” Governor Mead said. “Coal has helped make America great because it is an affordable and reliable source of energy. It keeps the lights on in our homes and powers America’s industries.”

The announcement also applauded two Wyoming-based mines Arch Coal’s Black Thunder Mine  and Peabody Energy’s North Antelope Rochelle Mine—that accounted for 20% of all U.S. coal production in 2012 combined.  Overall, 401 million tons of coal were produced in Wyoming last year.

Coal fuels American homes and businesses with affordable and reliable energy, and will continue to play a vital role in our nation’s energy mix.


The Cost of Los Angeles Prematurely Replacing Coal-Based Electricity

In a story from yesterday’s Los Angeles Times, a city watchdog has attached a large price tag to the city’s initiative to move the city away from coal-based electricity.

According to the article, “Fred Pickel, the ratepayer advocate at the Department of Water and Power, said Monday that eliminating coal from the utility’s power mix ahead of a state-mandated deadline is projected to cost more than $600 million. What that could mean for ratepayers’ electricity bills is unclear, he said.”

At a meeting of the City Council’s Energy and Environment Committee on Wednesday, Pickel said he would urge city officials to look for ways to lower the costs. “The question is, can we do this cheaper?” he said.

Two coal plants currently provide nearly 40 percent of the city’s energy. Under the new plan, the city would supplant most of that with power produced by switching to natural gas.

Fuel switching is an interesting approach for Los Angeles considering clean coal technology enjoys majority support among California voters. It is especially noteworthy that this support is broad-based, encompassing majorities of Republican, Democratic and voters declining to state a party affiliation. Given that the most important issues to California voters are “jobs and the economy,”voter sentiment that the state’s energy policies have made it less competitive should be a red flag to Sacramento legislators.

In a recent survey of California voters, nearly 57 percent answered yes when they were asked “Do you support or oppose developing new clean coal power plants in California?” When asked the question, “Do you think that California’s energy policies have made the state more or less competitive?”, more than 43 percent answered yes. And particularly telling is the fact that nearly one-quarter of California voters feel that the state’s energy policies have made the state far less competitive.

These numbers are in stark contrast to comments recently made recently by Los Angeles Mayor Antonio Villaraigosa when he announced that the city will become the only city in America that won’t get any electricity from coal by the year 2025.

Coal-based electricity is one of the least expensive, most reliable means of producing electricity, and it’s a central part of the American energy portfolio. Not only that, coal has a long history of providing energy to Americans.

America has depended on the reliable and abundant coal that comes from our land and powers our lives for more than a century. With the energy in America’s coal reserves being roughly equal to the world’s known oil reserves, it’s clear that coal should continue to be a reliable source of electricity for all of us.


Is the EPA an Impediment to Economic Recovery?

Further evidence that the EPA continues to ignore the damage that its new regulations are causing to the U.S. economy, and to states that depend on coal for jobs and affordable electricity, comes from a recent blog post by Hannah Fjeldsted at the Heritage Foundation.

In her post, The EPA: an Impediment to Economic Recovery, she states, “The rapid pace and severity of EPA regulations on the energy sector during the past four years illustrates an ongoing problem—the government’s impediment to an economic recovery.”

She goes on to say:

“The EPA’s mandates have unfairly discriminated against certain sectors of the energy industry, most notably coal, pointlessly killing desperately needed jobs. On top of the regulations that have questionable benefits at best, the EPA has withheld permits for coal mining that were already approved by other agencies, gratuitously delayed permits, and even rescinded previously issued permits. There are real consequences to actions like this.”

In fact, earlier this week U.S. Representative Ed Whitfield of Kentucky said, “The EPA, without question, has established an unfortunate trend line, methodically establishing a regulatory framework to eliminate coal, and taking away diversity choices from utilities throughout the country.”

As we’ve stated, we hope for a more constructive working relationship with the next EPA administrator. We will continue to emphasize that the best approach is a more balanced path that recognizes America’s continued need for coal, and the importance of clean coal technology.

The EPA needs to analyze and understand the full, cumulative economic impacts of its regulations, and not seemingly choose sides when it comes to energy production.  American jobs are at stake, as well as access to affordable, reliable electricity that is essential to our economic recovery.