Numbered Days, Lurking Options

This Congress has a limited number of days to take action. The three weeks before the August recess were critical for Senator Harry Reid (D–NV). The Senate majority leader wants to pass an energy bill to regulate carbon emissions and he needs 60 votes to even consider a bill in the Senate.

There are several senators with their signatures on an energy bill, each with a little different twist on how to regulate carbon and reduce our dependence on coal-fired electric generation plants. Senators John Kerry (D–MA) and Joe Lieberman (I–CT) have introduced the American Power Act. This bill started as a bipartisan effort with Senator Lindsey Graham (R–SC) also on the team. He departed when Reid shifted his attention away from energy to immigration, which still has not been taken up.

As introduced, the American Power Act includes carbon regulation for the utility industry, manufacturing, and transportation. The provisions in the bill are a cap-and-trade program to put a price on carbon emissions, an energy efficiency requirement, and a domestic energy production requirement emphasizing renewable energy.

Targeting Utilities?

When Congress went back into session after the Independence Day holiday recess, frustrations about the oil spill were high. With only three weeks before the August 9–September 10 recess, Senator Reid spent hours negotiating to get an energy bill introduced. Chances of success closer to the election season are very slim. During negotiations, Senators Kerry and Lieberman said they would be willing to consider a “utility-only” energy bill as long as there is a price on carbon emissions.

This is where the months of negotiation with environmental groups, the Edison Electric Institute (EEI) that represents the investor-owned utilities, and small utility consumer groups break down and fracture apart. A “utility-only” carbon regulation is basically a carbon tax and puts the burden on our electric consumers only. Our national organization, the National Rural Electric Cooperative Association (NRECA), along with several co-op CEOs have met with Senator Kerry to explain how the costs of such a plan end up on the co-op members’ energy bill. Electric co-ops are not on board with asking our members to pay the burden of these carbon costs for the country, much less the world.

Enough Hurt

The Wisconsin Electric Cooperative Association members do not support an energy bill that includes a carbon cap-and-trade program that increases the electric rates to our Wisconsin electric co-op members. Our members have already seen their rates go up 40 to 50 percent in the last five years to build renewable energy projects, add a bag house to collect nitrogen oxide and sulfur dioxide emissions from legacy coal plants, contribute to energy efficiency and low-income programs, and pay higher coal-shipping costs. How much is enough in this difficult economy? We haven’t said no to building renewables or environmental improvements, but we need more time to absorb these costs. Federal elected officials should not try to rush through an energy policy so they can check it off the list before this Congress adjourns.

The August recess ends after Labor Day on September 10. The administration and congressional leadership are committed to getting an energy bill passed before year’s end. We will be paying close attention to the debates and working hard to keep electric rates from skyrocketing. Join our efforts by expressing your concerns at www.ourenergy.coop.