A  report out from the Government Accountability Office (GAO) notes that  due to new regulations from the Environmental Protection Agency (EPA),  consumers in the Midwest may see a rise in energy costs and instability  in the power grid. The reports notes some coal-fired generators may not  have time to retrofit in time to meet an EPA deadline which will cause  closing of plants and laying off hundreds of workers, according to The Examier.

In a report last week to Senator Jay Rockefeller of West Virginia, the GAO said, “Several  representatives from power companies and officials from federal and  state regulatory agencies have expressed concerns that as companies  incur additional costs in responding to these additional regulations,  and as the electricity supply is affected by generating unit  requirements, electricity prices could increase and reliability — the  ability to meet consumers’ electricity demands — could be compromised.”

At issue are 4 specific regulations:

1. The Cross-State Air Pollution Rule
2. The Mercury and Air Toxics Standards
3. The Cooling Water Intake Structures
4. The Disposal of Coal Combustion Residuals

The study pointed out, “For  example, a study by the Midwest Independent Transmission System  Operator (MISO) . . . projected that 18 percent of the coal-fueled  capacity in the U.S. portion of it’s region could retire.”

Also pointed out was that maintaining the grids reliability “after potential unit requirements,” could cost between $2-$10 billion.

The EPA deadlines could be a factor, GAO noted, saying, “Available  information suggests the actions the power companies take in response  to the four key regulations will have costs, and some may be challenging  to complete by the the regulations’ compliance deadlines.”

The GAO also reported on the cost impact stating about Kentucky for example, "In  addition, these actions may have varied implications across the country  — increasing electricity prices in some regions and contributing to  some potential reliability challenges."

Then alluding directly to Kentucky the  GAO said residents could face “increase  residential electricity bills by 18 percent for one company and 10  percent for another — about $16 and $7 per month for an average  customer, respectively, by 2016.”

From  the Cornfield, the nation does need to address the impact and the  severity of pollution on each of our lives. However, we need to take a  common sense approach to the issue and address the concern with  circumspection.

For more information:

http://gao.gov/products/GAO-12-635

http://gao.gov/assets/600/592542.pdf