A new study by NERA Economic Consulting exposes the truth about EPA’s proposed carbon regulations for America’s power plants: the price tag of the plan is unlike anything we’ve seen before and American consumers and businesses will be stuck with the tab.
NERA’s analysis confirms the economic costs of EPA’s plan are staggering, and include:
- Compliance costs totaling $366 billion or more
- Annual costs for consumers of $41 billion or more
- Double-digit electricity price increases in 43 states
- Peak year electricity price increases exceeding 20 percent in 14 states
These costs are especially concerning when compared to other rules imposed by EPA. As proposed, EPA’s carbon regulations will far outpace the costs of compliance for all EPA rules for power plants in 2010 ($7 billion) and the annual cost of the Mercury and Air Toxics Standards rule ($10 billion), which is already responsible for the planned shutdown of a significant portion of the U.S. coal fleet. EPA’s proposal will rapidly increase coal retirements, shuttering 45,000 megawatts or more of coal-based electricity—more than the entire electricity supply of New England. With most of these retirements projected to occur within the next five years, EPA is sending us down a dangerous path towards weakened electric reliability and power outages during critical times.
Despite these significant costs and threats to reliability, EPA’s proposal would have a meaningless effect on global climate change: atmospheric CO2 concentrations would be reduced by less than one-half of a percent, equating to reductions in global average temperature of less than 2/100th of a degree, and sea level rise would be reduced by 1/100th of an inch—equal to the thickness of three sheets of paper.
Our fears of economic downturn, weakened electric reliability and rising electricity costs for American families and businesses will become an everyday reality if EPA imposes these dangerous and overreaching regulations. Join us and tell EPA that its “all pain, no gain” regulatory agenda must stop. Submit a comment at www.KeepAmericasPowerOn.org today.