EPA Assesses Cost of Regulation at $9.6 Billion
December 21, 2011 – The EPA has released a cost estimate of a rule that was signed December 16, 2011, that will require the reduction of emissions of toxic air pollutants from power plants in the U.S. The cost, estimated by the EPA, is expected to be $9.6 billion in 2015, and nearly that amount in 2016 and beyond. Because this is the agency that is writing the rule, costs could be much more than they estimate. “This is another example of the Obama Administration using its power to follow through on campaign promises to make it much more expensive to generate electricity using coal,” said Ray McCarty, president of Associated Industries of Missouri. “The costs of this rule will be felt by all consumers, but the rule will be especially costly for Missouri manufacturers and will certainly result in job losses.”
What does this mean to your business? Electric utilities must pass this cost through to its customers. A $9.6 billion increase in rates will increase electricity costs for all businesses. Manufacturers will be one of the hardest hit sectors, since manufacturers are large consumers of electricity. The EPA estimates rates will rise by an average of 3.1% nationally as a result of this rule alone. Because Missouri generates a major portion of its electricity from plants that will be affected by the rule, the impact to your rates are estimated to rise by 6.3% in the far western part of Missouri, 2.8% in Eastern and Central Missouri, and 3.1% in Southeast Missouri.