National Center for Public Policy Research press release

For Release: December 21, 2011
Contact: David Almasi at (202) 507-6398 x11 or (703) 568-4727 or [email protected]
or Judy Kent at (703) 759-7476 or [email protected]


President Obama Gives Hardworking Families Higher Electricity Prices for Christmas

EPA's Utility MACT Rule to Cause Skyrocketing Electricity Prices, Significant Job Losses and Jeopardize Reliability of Electricity Supply

EPA Administrator Lisa Jackson Exploits Children to Advance Obama's War on Coal, says National Center for Public Policy Research


Washington, D.C. - Responding to the Environmental Protection Agency's announcement this afternoon of its Utility MACT rule, policy experts at the National Center for Public Policy Research are calling attention to the harsh economic consequences of the agency's new regulations targeting coal-fired electricity.

"Coming with a price tag of about $11 billion/year, EPA's Utility MACT rule is the most expensive regulation issued by the agency on utilities. The huge costs will be passed on to hardworking American families, small businesses and the manufacturing sector. The consequences of the EPA's war on coal will result in double digit electricity price increases and millions of job losses," said Tom Borelli, Ph.D., director of the National Center's Free Enterprise Project.

Currently, coal powers about 45 percent of our country's electricity. A study conducted by NERA Economic Consulting on the impact of EPA's Utility MACT and the Cross State Air Rule found these regulations will cause a loss of 1.4 million job-years by 2020 and increase electricity prices up to 24 percent.

"Utilities have made great strides in reducing emissions from power plants but EPA's rush to extinguish coal-based electricity will result in significant economic harm while jeopardizing the reliability of our power supply. Because of the enormous compliance costs to meet EPA's new standards, utilities are finding it's cheaper to close power plants. The loss of electricity from these power plant closures will jeopardize the reliability of our power supply," added Tom Borelli.

"I'm outraged EPA Administrator Lisa Jackson used a children's hospital to announce the agency's new rule. Exploiting children during Christmas is pure propaganda and it unmasks the radical agenda and shameless tactics of Jackson and the Obama Administration," said Deneen Borelli, full-time fellow of the National Center-sponsored African-American leadership group Project 21.

Electricity price increases are being reported nationwide as a result of the EPA's actions. In North Carolina, Duke Energy is seeking rate increases of 14 and 17 percent for households and business respectively, and in Chicago the rates may spike by up to 60 percent.

"The real story is how Obama's war on coal will harm the American family. To be accurate, Jackson should have held her press conference at an unemployment line in an urban community. Obama's economic policy has had horrible consequences to the black community and the skyrocketing electricity prices resulting from Jackson's EPA will drive more blacks to the government plantation," added Deneen Borelli.

The National Center For Public Policy Research is a conservative, free-market non-profit think-tank established in 1982. It had $12 million in income in 2010 and is supported by the voluntary gifts of over 100,000 individual recent supporters, receiving about one percent of its revenue from corporate sources. Contributions are welcome and greatly appreciated.


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