ON-Lion Letter

In August, the U.S. Environmental Protection Agency released the final rule in its so-called "Clean Power" Plan.  The plan "takes aim at coal-fired power plants in an effort to drop carbon emissions levels 32 percent by 2030, based on their 2005 levels," according to an August op-ed by Matt Crumb in Watchdog.org.  "Each state will have to submit a plan tailored specifically to their emissions levels no later than 2018 and start full compliance no later than 2022."

Crumb is a research associate at the MacIver Institute in Madison, Wis.  The Lynde and Harry Bradley Foundation in Milwaukee substantially supports the MacIver Institute.

"The plan is only slightly altered from its original form, which had a 30 percent emissions reduction target and required plan submittal by next year and full implementation by 2020," Crumb continues.

"Wisconsin gets 62 percent of its electricity from coal-fired power plants," he writes.  "Manufacturers and other commercial users of electricity rely heavily on this cheap form of energy.  Under the original 30 percent reduction proposal, Wisconsin stood to lose $920 million in 2030, see a 19 percent electricity price increase and lose out on nearly $2 billion in disposable income, according to a joint study by the MacIver Institute and the Beacon Hill Institute at Suffolk University.  Now that the finalized rule requires a larger percentage of carbon emission reductions, these figures could be even higher for the Badger State.

"This will hit Wisconsinites hard," he continues.  "Under a 19 percent electricity price increase, households will pay an additional $225 a year, commercial ratepayers an additional $1,530 a year and manufacturers would pay an additional $105,094 a year in 2030 for electricity."

"It could be even worse if projections from Wisconsin's state utility regulator are true, which estimate as high as a 29 percent increase in electricity prices."

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