The Cost of Carbon

By Mark Glaess, Manager, MN Rural Electric Association

Earlier this month the Environmental Protection Agency (EPA) issued a "proposed endangerment finding," which says that carbon dioxide "threatens public health and welfare" by triggering global climate change. Absent Congressional action, EPA will next implement a "prevention of significant deterioration" (PSD). The PSD will allow EPA to regulate any source producing more than 250 tons of CO2 a year. As a reference point, the average Minnesotan produces 23 tons of CO2 annually. That output includes energy use, auto emissions and industries that emit CO2 , which pretty much covers everything. All told, this PSD will affect over 1 million sources (bakeries, dairy farms, hotels, colleges, churches, utilities, etc.).

Several Congressional measures have been introduced to reduce overall CO2 by 80 percent by 2050 (based on 2005 emission levels). Those proposals, guaranteed, will raise the average Minnesota household electric bill by $50 (based on 1000 kWh monthly usage).

The lack of affordable technology to capture CO2 vastly complicates the effort to cap carbon dioxide emissions. Renewable energy sources like wind and solar are unpredictable and expensive. Nuclear power, which emits no greenhouse gasses, takes 20 years to build and is also extremely expensive.

The Minnesota Rural Electric Association, which represents the state's 44 member-owned electric utility cooperatives, supports renewable energy and conservation—we always have. However, we are concerned that the cost of a carbon tax or cap and trade system to our member-owners, whose per capita income is 20 percent below the state average, is simply unaffordable. That's why we are asking Congress to carefully consider the lack of technology, the need to meet growing electricity demands, and affordability as it shapes carbon emissions legislation. We'd be pleased if you would join our efforts by participating in that grassroots campaign. You can do so by accessing www.OurEnergyMN.coop