The American electrical grid is built and managed by separate companies that contract to supply power to a consortium of local power companies. Each year they hold a capacity auction in order to determine how much power the companies they contract with will require in the future and to set the price that the companies will pay for the electric needs they anticipate.
The transmission company that services the 13 Mid Atlantic states recently held an auction to determine the 2015 needs and prices, and the results are upsetting. For 2015 the market price will be $136 per megawatt. In 2012 the price has been $16 per megawatt…that’s an 850% increase in cost to the user.
The reason for such a startling increase over such a short period of time is defined by one word, Regulations. New regulations have been issued that are the result of Obama’s war on coal and other energy producers. The EPA has mandated that by 2015 all coal plants must install “Maximum Achievable Control Technology”, a vague term and an equally vague set of goals. This requirement, because of aging power plants that are difficult to upgrade will remove an estimated 14,000 megawatts of coal generated power from the national grid. In addition the administration has announced that will not issue permits for any future coal powered electrical plants.
The bottom line is that the cost of everything that uses or is produced using electrical power will in 3 years time be increased by a factor of 8. Everything we buy or use will cost more and there will not be an increase in magnitude in your take home pay. In short this is much more than a “tax the rich” scheme, it’s a stick it to the masses program that will beggar our economy.
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