Wednesday, May 23, 2012

Energy Cost Sticker Shock

PJM Interconnection is a regional transmission organization that manages the high voltage electric grid and wholesale electricity market for 13 mid Atlantic states and the District of Columbia. They recently held a capacity auction to fix the prices for electricity for 2015. The results are ominous! The market price was $136 per megawatt. In 2012, the price was $16 per megawatt. If you do the math, that's an 850% increase!

This is not speculation. These are real prices. Here's the press release.

Why, PE, you may ask, is the price increasing so much? In a word, Regulations. In Obama's war on coal, the EPA instituted regulatory changes to require coal plants to install MACT, or Maximum Achievable Control Technology, on their emissions by 2015. This regulation will effectively remove 14,000 megawatts of coal powered capacity from the system.

You won't see this news in the MSM. The Fox story is here along with information on what our legislators are doing about. Remember that this issue goes far beyond "tax the rich". Everyone will have to pay more for electricity. How would you pay for an electricity bill that increased by a factor of 8? What do you think manufactured goods will cost because of this increase? What will your food cost? Get busy and write your Congress Critters!


Old NFO said...

Time to move... I can't afford a $1700/mo electric bill, and you damn well those price increases WILL be passed along...

Kevin said...

But it's not a tax increase.