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A National Meltdown

Discordant global-warming solutions may end up burning utilities.

Fortnightly Magazine - October 2006

Interest, Taxes, Depreciation, and Amortization] would be significantly lower because of the higher costs,” he surmises.

As a result, he says, “utility valuations could be cut by one-third.”

The Perfect Storm

A drawback to the Northeast carbon program, according to Americans for Balanced Energy Choices (ABEC), is that the program “covers only CO 2 emissions from electric generators, which account for about one-third of regional emissions. It ignores other source sectors such as transportation, as well as other greenhouse gases.” ABEC believes ignoring other emissions may lead to increased CO 2 emissions, not less. AEP CEO Michael Morris, chairman of EEI earlier this year, said, “EEI strongly favors an economy-wide approach, including all sources and sectors of the U.S. economy.”

Let’s not be timid. It is the U.S. economy that hangs in the carbon balance. Congress must develop a thoughtful, comprehensive national plan on climate change now rather than later.

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