New restrictions on coal-fired power plants will be a hard hit to the economy

The Detroit News
June 23, 2011

The Environmental Protection Agency’s crusade against coal-fired power plants is on a fast track to raise electricity bills in Michigan by as much as 20 percent and restrict the state’s economic growth.

The latest attack on America’s economy by the EPA is tough new requirements on mercury and other emissions at coal plants that the agency hopes to have in place by the end of the year. Utility companies would have just three years to comply with the new standards or shut down the offending plants.

In Michigan, DTE estimates installing scrubbers on its coal plants will cost $2 billion, which will be passed on to consumers in higher monthly bills.

The industry says it can meet the new standards with more time to develop less costly technology. Congress should give it that time.

Because it isn’t economical to install the expensive technology on older plants nearing the end of their productivity, the most likely scenario is that those facilities will be closed down.

DTE predicts the closure of four to five of its older coal plants, or about 20 percent of its capacity.

Environmentalists will celebrate those shutdowns, of course. But getting rid of coal plants doesn’t get rid of the demand for power. The most likely alternative won’t be wind or solar, as the greens hope, but natural gas.

Shifting to natural gas builds more volatility into the cost of electricity.

The shutdown of coal plants also decreases the reliability of the power generation network and leaves consumers vulnerable to brownouts.

But the real impact is on jobs and economic growth. The International Brotherhood of Electrical Workers forecasts 50,000 of its members will lose their jobs within three years, and 200,000 additional jobs down the supply line.

In addition, coal-dependent states such as Michigan would risk losing business to states — and countries — that can now produce electricity cheaper.

President Barack Obama made a big deal out of promising to put the kibosh on regulations that threaten jobs and growth.

And yet he allows Lisa Jackson, the EPA administrator, to continue to impose rules that put growth at risk.

DTE says if it had a longer period to implement the changes — six to eight years instead of three — it could smooth out the impact. That would also allow technology the time to catch up with the regulatory demands.

Congress should act to give utilities the extra time to avoid another unnecessary hit to the economy.

From The Detroit News: http://detnews.com/article/20110623/OPINION01/106230345/Editorial–Stop-EPA-from-killing-coal#ixzz1UqNzF7YE