Proposed “Clean Power Plan” Could Lead to Double-digit Price Increases
Guarding against rising electricity rates with Combined Heat and Power
There are so many factors that impact energy costs. As a building owner or facilities manager you probably pay close attention to economic forecasts, weather reports, and energy sector trends to see what increases might be coming your way.
Recent news from Washington, DC suggests increases in energy costs might be coming as a by-product of a new proposal from the Environmental Protection Agency.
The Clean Power plan is designed to regulate CO2 emissions from existing fossil-fuel power plants under section 111(d) of the Clean Air Act.
According the EPA website, The Clean Power Plan is “a commonsense plan to cut carbon pollution from power plants.” The EPA also says the plan “will maintain an affordable, reliable energy system, while cutting pollution and protecting our health and environment now and for future generations.”
The initial plan was outlined in June and just this week (Oct, 28, 2014) the EPA issued a second release calling for comments from stakeholders at all levels including states, utilities, industry, public health and environmental groups, labor, and community groups to add to the already 1.5 million comments by a Dec. 1, 204 deadline.
One group that has analyzed the plan, NERA Economic Consultant, argues the negative impact of the plan will far outweigh any projected reduction in emissions.
In short, NERA sees dramatically rising energy prices as a by-product of the plan. NERA projects that the costs to comply with EPA’s proposed plan could total $366 billion, or more, in today’s dollars. The analysis also finds that 43 states will have double-digit electricity price increases, with 14 states potentially facing peak year electricity price increases that exceed 20 percent.
Has your building / facility budgeted for 20 percent increases in energy costs?
For many, Combined Heat and Power can stand guard over these increases.
Aegis Energy, EDF Group’ CHP systems provide energy savings for a variety of facilities, from healthcare and assisted living facilities, to recreational and multi-residential complexes, and hotels. There are also institutional, educational, and industrial facility applications.
The Aegis CHP system reduces both costs and emissions by simultaneously generating power and thermal energy from a single fuel source.