| Sourced From Examiner.com |
Winners and losers under a Carbon Cap and Trade Law. Point Carbon, a market analyst firm, identified in a report released today the winners and losers of the Senate Carbon Cap and Trade bill. The power and oil sector represents 40% of covered carbon emissions. Southern Company is the biggest loser and Excelon Corporation the biggest winner.
The power sector is most vulnerable. Southern company would pay 12% of its operating income to comply with Cap and Trade, American Electric Power would pay 11% and Duke Energy would pay 5%. American Electric Power would pay $2.3 billion annually and Southern company $2.2 billion.
ExxonMobil is the largest carbon emitter in the U.S. at 6% of total national carbon emissions, but its operating income will only slightly suffer under a Cap and Trade law. Based on the price of a ton of carbon projected at $15 per ton, ExxonMobil would pay $5.9 billion annually to comply. Raising gasoline prices 5% would leave ExxonMobil’s total cost of compliance at $277 million per year out of its $84.1 billion operating income. A $15 per ton carbon price translates to an increase of $0.13 per gallon of gasoline.
Some power companies gain under a Cap and Trade system. Excelon would see a net increase of 36% in its operating incoming due to its large portfolio of low emission power generation plants. Other energy company winners are FirstEnergy and PG&E.
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We should talk about the losers, who are the American people. These increased costs will be directly passed on to consumers, at a time when we can ill afford it. Add that to the lost jobs and there is no denying that this legislation will hurt Americans. Write your legislators at http://tiny.cc/08jiT and let them know that you do not support this bill that will have such a negative impact on the American people.
The American people have used carbon for centuries now to build their economy, not unlike England before. Other countries like India and China are following the same trail. If we believe the scientific conclusions that global warming is on the brink of destroying our civilization, then we are forced to do something about it including help others find solutions. That of course presumes that we are moral people and are willing to make sacrifices that cause us only a small part of the pain we otherwise would be bestowing on our children. Absent the argument for climate change being caused by man’s use of carbon producing run away global warming there is no reason to back this bill.
One more thing to think about. The blood shed to build America was given for future generations. Think of the suffering of America’s brave soldiers who fought and died in our wars. What peace would they have if they knew before they died that the country they tried to save would finally be delivered to its destruction by the selfish greed of the very people they died for.