Recent Events
August 2011
At Women In Government's Third Annual Energy Summit, new energy regulations was an important topic of discussion. The U.S. Environmental Protection Agency’s air pollution control regulations will be implemented between 2012-2017 and could force many power plant owners to consider switching from coal to natural gas in order to reduce conventional air pollutants including nitrogen oxide (NOx), sulfur dioxide (SO2), and mercury. This session addressed practical issues for electric utilities in all states.
The first speaker was Kipp Coddington, an energy and environmental lawyer who represents clients in policy, regulatory, transactional and litigation matters. Mr. Coddington led the founding of, and currently represents, the North American Carbon Capture & Storage Association. His presentation emphasized five points about the upcoming EPA regulations, and the bottom line is that they will largely target coal. There is widespread agreement that the existing coal plants will have to be retired to adhere to these new rules, as it would not be not be cost efficient to update these plants. Why is EPA doing this? They are concerned with public health, and these regulations have overstated health benefits, and understated its costs. The EPA does not take tangential health benefits into consideration. For example, if a coal plant goes offline, and a person has diminished electric availability, therefore forced to lower his or her air conditioner and as a result suffers a heat stroke. Effective January 1st, many coal plants are being shut down because the EPA timelines have given extremely short timelines for compliance- in some instance just a few short months. Reliability of electricity is also a factor that the EPA has not assessed. The EPA evaluates health benefits, but did not assess the reliability of energy or the expected increased costs before requiring these regulations. Electric demand only grows, we are in an sinking economy. Coal provides base-load power. It is inexpensive, uncomplicated, and easy. The only other base-load power sources are nuclear and natural/shale gas, both of which have their own issues. The point is, every power industry has problems and issues, none is perfect. Having a diverse portfolio is the most important thing that states should consider. For more information, please see his presentation here.
The second speaker, Paula Jackson, is the Vice President Operations for the American Association of Blacks in Energy, a 2,500 member non-profit professional association whose focus is to ensure that African Americans and other minorities have input into the discussions and development of energy policy, regulations, and environmental issues. In this role, Ms. Jackson is responsible for the organization’s programs, membership and chapter development, communications, and national conferences. Ms. Jackson has spent more than fifteen years of her career in the natural gas and electric utility industry working in the areas of regulatory affairs, government affairs, community relations, and economic development. She spoke to Women In Government about the importance of coal as a cheaper alternative for those who do not make enough money to afford other options. If a family makes less than $50,000, it is estimated that they spend 50% of their income on paying energy/utility bills. The potential economic impact of the EPA regulations will not only increase utility bills, but will also increase food, etc. The regulatory adage claims to be “fair and balanced” but is not proving to be so. For more information, see her presentation here.