Sunday, May 24, 2009

Cost of cap-and-trade bill would trickle down to consumer

Study says Texas ratepayers could see $600 increase in utility bills per year
Copyright 2009 Houston Chronicle
May 23, 2009, 3:34PM

President Barack Obama and liberals in Congress support federal regulation of carbon dioxide. Proponents of CO2 regulation claim that taxing polluters is an effective way to reduce carbon emissions, but the staggering costs of a cap-and-trade program will stifle our domestic energy and manufacturing sectors and result in major rate increases for consumers. The cap-and-trade plan should really be called “the light switch tax,” because if this bill becomes law, you will pay a tax every time you flip your light switch.

U.S. Reps. Henry Waxman, D-Calif., and Edward Markey, D-Mass., recently introduced the American Clean Energy and Security (ACES) Act of 2009, which would create a cap-and-trade program requiring CO2 emissions to be reduced 17 percent below 2005 levels by 2020 and 83 percent below 2005 levels by 2050. The bill would set up a cap-and-trade system that sets a limit (or cap) on total CO2 emissions from fossil fuels and establishes a yet-to-be-defined carbon allowance on each utility or company. Details such as cap levels and which companies are subject to allowances are still being finalized by Democrats, but the outcome looks grim for consumers.

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