Truth #10: Raises Electricity Prices and Kills Jobs
What the bill does: The bill mandates a “cap” on carbon emissions, while providing a percentage of carbon-emission “allowances” to the electricity sector. These allowances will be arbitrarily allocated by the authors of the legislation and will decline each year until they are phased out in 2030. If the number of allowances do not cover the carbon emitted by coal plants, for example, they would either have to spend more money to retrofit their operations or purchase additional allowances from the federal government. This will cause electricity rates to go up as companies purchase the necessary amount of emission allowances. (H.R. 2454, American Clean Energy and Security Act of 2009, Sec. 321, p. 536, and Sec. 116, p. 90.)
What this means for Americans: As President Obama said, electricity rates will “necessarily skyrocket” and those costs will be passed on “to consumers.” (San Francisco Chronicle, 1/08) Plants will be forced to close down, putting even more workers out of a job. Either way, the American people will pay a heavy price for the Democrats’ costly national energy tax – at a time they can least afford it.
NOTE: To see other truths about the Democrats’ plan for a national energy tax, click here.