Obama: “electricity rates would necessarily skyrocket”

2 11 2008

So yesterday we learned that Obama thinks that painfull price signals are necessary. Today we learn about his extreme plans for CO2 cap-and-trade that would bankrupt coal industry and make electricity rates skyrocket.

[Obama] … I was the first to call for a 100% auction on the cap and trade system, which means that every unit of carbon or greenhouse gases emitted would be charged to the polluter. That will create a market in which whatever technologies are out there that are being presented, whatever power plants that are being built, that they would have to meet the rigors of that market and the ratcheted down caps that are being placed, imposed every year.

So if somebody wants to build a coal-powered plant, they can; it’s just that it will bankrupt them because they’re going to be charged a huge sum for all that greenhouse gas that’s being emitted.

…. You know, when I was asked earlier about the issue of coal, uh, you know – Under my plan of a cap and trade system, electricity rates would necessarily skyrocket. Even regardless of what I say about whether coal is good or bad. Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it – whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.

BTW, 48.5% of electricity in the US is generated from coal. So if Barack is against coal, against new nuclear power, against drilling off-shore, what is his plan for the Energy?

He wants to ratchet up the electricity, gas, and generally energy prices so that consumers will no longer be able to afford it and will be forced to cut on consumption or spend money on “energy efficiency”, like new AC units ($4k a piece), smaller and/or more expensive cars etc.

Regarding commercial energy consumers, their higher energy cost would certainly trickle down and result in increases in prices of goods manufactured in the USA.

So what Obama giveth you with one hand (e.g. $500 refundable tax credit) , he with the other hand taketh away (higher energy and goods prices).

As expected media keeps silent about this.




One response

6 11 2008
Dow Jones U.S. Coal Index down more than 15% « What’s Arugula

[…] Could this have something to do with Obama’s promise to bankrupt coal? […]

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