Wednesday, May 23, 2012

This One's Gonna Hurt You, Me, Everyone

You thought gas prices were high? Wait till the war on coal hits your electric bill.

Obama's war on coal hits your electric bill
These are the first real, market prices that take Obama's most recent anti-coal regulations into account, and they prove that he is keeping his 2008 campaign promise to make electricity prices "necessarily skyrocket."

The market-clearing price for new 2015 capacity – almost all natural gas – was $136 per megawatt. That's eight times higher than the price for 2012, which was just $16 per megawatt. In the mid-Atlantic area covering New Jersey, Delaware, Pennsylvania, and DC the new price is $167 per megawatt. For the northern Ohio territory served by FirstEnergy, the price is a shocking $357 per megawatt.

Why the massive price increases? Andy Ott from PJM stated the obvious: "Capacity prices were higher than last year's because of retirements of existing coal-fired generation resulting largely from environmental regulations which go into effect in 2015." Northern Ohio is suffering from more forced coal-plant retirements than the rest of the region, hence the even higher price.

These are not computer models or projections or estimates. These are the actual prices that electric distributors have agreed to pay for new capacity. The costs will be passed on to consumers at the retail level.
Notice how this won't really kick in until after Obama thinks he is re-elected. The most important thing you can do this year is vote Obama out of a job.
The only thing that can stop this massive price hike now is an all-out effort to end Obama’s War on Coal and repeal this destructive regulatory agenda.

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