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NERA study: CPP compliance will hike electrical rates in 47 states

From NAM


Watchdog (11/12, Nikolewski) reports that a study from NERA Economic Consulting has found that the costs associated with the Environmental Protection Agency’s Clean Power Plan (CPP) “will be much higher” than the EPA’s estimates “by the time the CPP is fully effective.”

The study found that “all 47 states subject to the regulation could see higher electricity prices,” and 41 states could see “double-digit increases in electricity prices” during peak usage. The senior vice president of policy and federal issue for the American Coalition for Clean Coal Electricity, Paul Bailey, stated that two major reasons for the differences in estimates are that NERA has estimated higher costs for future energy efficiency measures than the EPA and that NERA projects only 47,000 megawatts of coal generation “will be retired before the CPP even goes into effect,” while the EPA assumes 100,000 megawatts will be retired.

Of NERA’s study, Bailey stated, “We think we did a better job of modeling” because estimates were based on more compliance scenarios than used by the EPA.

Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri.

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