The cost of cap and trade

Last month, the U.S. House of Representatives passed monumental climate change legislation that will change the future of energy in America. Over the past several weeks there have been opinion articles applauding the passage of this bill and encouraging the U.S. Senate to pass even tougher legislation. The bill as crafted in the House will have a profound effect on our nation’s economy. Energy prices will increase dramatically as utilities rush to purchase carbon offsets in order to generate electricity since no reasonable technology is available to capture carbon emissions from current power plants.

Recent data on the cost impacts to Americans range from about $100 per year up to $3,000 per year. Utility industry forecasts have concluded that retail electricity rates could increase by 30 percent or more. This legislation will have a profound impact on everything we consume in this country because of the fact that energy is such an important part of our lives. Increased energy costs will be felt throughout the entire economy.

A recently published opinion article thanked Congressman Walz for putting Minnesotan’s pocketbooks first when he voted for the American Clean Energy and Security Act. In fact, it is Minnesotan’s pocket books that will take a real hit when the full impact of this legislation takes hold if significant changes are not made to the bill. We should be sure to thank Congressman Walz for demanding changes to the bill that will help mitigate the impact to rural Minnesotans, but it will still be at a cost.

Many lawmakers have touted the number of green jobs this will create in America, but the question is how many other jobs will be lost to other countries that will now have a lower cost of energy? Will we in fact have a net loss of jobs because of this bill?

As the U.S. Senate takes up debate on climate change, we should be encouraging our senators to develop a comprehensive energy policy that addresses greenhouse gas concerns while at the same time not putting the health of our fragile economy at risk.

Jim Krueger

president/CEO

Freeborn-Mower Cooperative Services