From Deseret News archives:
Will green initiative cost Utahns dearly?
The Western Regional Climate Action Initiative calls for an overall regional goal to reduce greenhouse gas emissions from six Western states, including Utah, and calls for a cap and trade program whereby emission credits could be sold.
But the implementation of such a program could mean a hit in the pocketbook for Utah industries and consumers, who currently pay among the lowest prices nationally for electricity.
In fact, Utah residential electricity prices are about half of what California residents pay.
Utah Sen. Mike Dmitrich, D-Price, said if Utah implements laws regulating carbon dioxide emissions, electricity rates in the state will skyrocket.
"It really surprises me that Gov. Huntsman got in bed with California when they have had severe brownouts not that long ago and they are predicted again this year," Dmitrich said. "We have to look at the many, many jobs that could be lost if something this drastic takes place. The income to the state and the economy from electric power generation and the coal industry is enormous."
Huntsman has said the initiative does not mean coal-fired power plants will become a relic of the past. In addition, Huntsman is unwilling to say he opposes the building of new coal-fired power plants.
But in California a new law implemented this year bars utilities and cities from renewing or negotiating new contracts from high-polluting sources, like coal-fired power plants.
Major California cities — like Anaheim, Burbank, Glendale, Pasadena and Riverside — currently rely on Utah coal-fired power plants for their electricity needs. By 2027, those cities will no longer be allowed to purchase coal-fired power.
"We don't have such a thing as Democratic air or Democratic water or Republican air or Republican water," said California Gov. Arnold Schwarzenegger at a news conference Monday. "Three and a half years ago when I campaigned to become governor I said I want to take care of the economy and take care of the environment. They said, 'You can't do both.' But we have proven that you can do both."
Still, for Utah consumers, a cap and trade program could have tremendous economic impacts, according to Dave Eskelsen, a spokesman for Rocky Mountain Power, which serves 75 percent of the state's residents.
"A cap and trade program doesn't in and of itself reduce emissions. It makes emissions more expensive," Eskelsen said. "We want to be part of these discussions to make sure that energy policy changes are well informed as to their impacts on consumers. Our experience has been that customers generally do not favor rate increases for any reason."
E-mail: danderton@desnews.com
