| Sourced From |
The organization that controls the electrical grid in Delaware and much of the region says legislation that would reduce carbon emisisions from coal-fired plans could cause wholesale electricity prices to rise sharply.
The study from PJMs economist says proposals now before Congress would send wholesale prices from $7.50 to as much as $45 per megawatt hour in 2013. PJM says it is not lobbying against the legislation, but wanted consumers and businesses to know the costs involved.
The added costs would amount to annual costs of between $5.9 billion to $36 billion in the PJM market area, which includes must of the mid-Atlantic region and portions of the Midwest.
PJM is the largest entity on the North American electrical grid. It is based in Valley Forge, Pa., outside Philadelphia.
PJM claims more aggressive use of energy conservation and windpower could reduce consumption of fossil fuels at a lower cost than emissions caps. A large percentage of new generation coming on line is from windpower and offshore wind projects could add even more power.
As for natural gas, it is far more expensive than coal in large generation plants and would become competitive if pollution standards result in the costs fossil fuel plants rising near the top end of the price range
Related posts: