The Cost Of Clean Air: A Postage Stamp A Day Or Much More?

BRISTOL, Va. – Pending federal clean-air legislation would increase consumer electric bills by only a small amount, U.S. Rep. Rick Boucher said Tuesday.

But a major power provider offered a costlier outlook.

The bill, which was approved last month by the House of Representatives and could go before the full Senate later this year, would impose limitations on “greenhouse gas” or carbon dioxide emissions – directly affecting coal and energy companies.

Boucher, D-9th, chairman of the House Energy and Commerce Committee, said he negotiated a series of amendments to the legislation.

“The Environmental Protection Agency has estimated the total cost of the program for a typical American family will be no more than the cost of a postage stamp a day when this is implemented in the middle of the next decade,” Boucher said during a news briefing at City Hall. “Lower-income families will experience no cost increase as a result of the program, according to a cost estimate by the Congressional Budget Office.”

That would translate to an expected increase of $80-$110 annually on electric bills, if the measure passes, and $175 per year by 2020. That figure is about a tenth of the $1,000 per year estimated by some opponents of the legislation, Boucher said.

Appalachian Power research estimates electric bills could rise much more, spokeswoman Melissa McHenry said in a phone interview Tuesday.

“Our estimates are 15 [percent] to 25 percent increase, depending on the state and depending on what happens,” McHenry said. “We support the legislation – which is a better deal than having the EPA regulate CO2. They would offer much less flexibility and that would involve retrofitting or shutting down a number of coal-fired plants.”

Such an alternative could mean a 65 percent to 70 percent increase in electric costs for consumers, McHenry said.

Appalachian Power serves about 500,000 customers in Southwest Virginia.

“The amendments were focused on keeping electricity rates affordable, which we’ve done,” Boucher said. “We’ve also assured the coal industry in our region is protected. According to the Environmental Protection Agency, coal use will be greater in 2020 than it is at this time.”

Under the bill, electric utilities wouldn’t have to purchase their emission allowances from the federal government, which would significantly reduce the program’s cost.

“We’ve provided two billion tons of offsets on an annual basis, so that, instead of actually reducing emissions at the site where electricity is generated, the utility can invest in agriculture or forestry [somewhere else] in a low-cost way. That way they can reduce greenhouse-gas emissions and still produce the electricity without expensive changes,” Boucher said.

McHenry said Appalachian supports the offset amendment because it’s a less costly alternative that provides more options for the power company.

Tennessee Valley Authority spokesman Jim Allen said the agency is still studying the bill.

“TVA is reviewing the bill that passed the House on June 26 and following the progress of climate and energy discussions in the Senate,” Allen said. “While it’s too early to comment until we see a final bill that passes the House and Senate, TVA remains committed to improving our environmental footprint by producing more power from carbon-free emission sources such as nuclear power and developing energy-efficient incentives for our customers.” 

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