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The AP Carries Water for Obama’s Coal Closures December 19, 2011

Posted by geoff in News.
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AP conducted a survey of coal-burning power plants, and is now trying to assure us that everything’s gonna be all right:

More than 32 mostly coal-fired power plants in a dozen states will be forced to shut down and an additional 36 might have to close because of new federal air pollution regulations, according to an Associated Press survey.

Together, those plants — some of the oldest and dirtiest in the country — produce enough electricity for more than 22 million households, the AP survey found. But their demise probably won’t cause homes to go dark.

“Probably” isn’t especially reassuring, but overall it’s good news, yes? But later, waaaayyyy later in the article, they drop this little nugget:

Kentucky Utilities expects its customers to see as much as a 14 percent rate increase to make up for the $800 million it is spending to replace what will be retired, and the $1.1 billion it plans to spend on anti-pollution upgrades. Other power companies have applied to recoup the cost of retrofits or of building new gas-fired power plants. The EPA estimates that industry will spend $11 billion complying with the two rules by 2016.

A 14% increase in electricity rates is a huge hit to both residential customers and businesses. Smart move in a recession. Of course the government will probably decide to give subsidies to customers in those areas: yet another instance where the government ends up spending more to fix a problem that it created.

Comments»

1. LC Aggie Sith - December 19, 2011

I’m no psychic, but I see lots of rolling blackouts in the future.

2. Lipstick - December 22, 2011

The govt. will only give subsidies to democrat-friendly areas. Companies who have employees who donated to Republicans need not apply, either.


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