The FINANCIAL — While the U.S. currently benefits from a wide range of electricity sources, federal regulations and a narrow focus on renewable energy and natural gas will threaten our diversity.
If the two most vulnerable sources of energy—coal and nuclear energy—which provide almost 60 percent of electricity, are removed from our supply it could result in over 1 million jobs lost and a reduction of over $2,000 in annual household disposable income for every household, according to a new study supported by the U.S. Chamber’s Institute for 21st Century Energy.
“The federal push to eliminate coal and favor some technologies over others could turn a major strength of our nation—a diverse supply of electricity resources—into a big vulnerability,” said Karen Harbert, president and CEO of the U.S. Chamber’s Energy Institute. “This new IHS study should serve as a wake-up call to policymakers and consumers to pay attention to our electricity mix and start protecting each and every source,” Harbert added.
“EPA’s proposed rules on new and existing power plants will significantly reduce our coal-fired generation, prevent the construction of new coal-fired power plants, and could even threaten natural gas in the future. Other federal policies and state mandates promote renewable production, while placing nuclear energy at a competitive disadvantage even though it also is an emissions free power source,” Harbert said.
The IHS study, titled “The Value of US Power Supply Diversity,” finds that from 2010-2012, retail power prices for consumers would have been 25% higher and wholesale power prices would have been 75% higher without significant contributions from coal and nuclear resources. In addition, electricity rates would have been far more volatile, according to the U.S. Chamber of Commerce.
“The polar vortex last winter demonstrated the value of America’s diverse electricity portfolio,” said Heath Knakmuhs, senior director of policy at the U.S. Chamber’s Energy Institute. “The colder temperatures in some parts of the country stretched natural gas demand, and utilities turned to coal to provide power. While increasing natural gas production is a very good thing for our economy and our security, it should not be at the expense of other sources,” Knakmuhs added.
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