Legislative Update - June 9
On May 21, 2009, the U.S. House Energy and Commerce Committee approved carbon control legislation in the form of H.R. 2454, the American Clean Energy and Security Act 2009 (ACES Act). Considerable improvement in the language was made over the earlier version, thanks to the active participation of Indiana utilities and consumers. Indiana’s Partnership for Fair & Affordable Energy greatly appreciates the Indiana Congressional delegation’s willingness to listen to ratepayers’ concerns and to make improvements to several of the provisions. However, the legislation has a long way to go before it will be within the boundaries of affordability for Indiana consumers. We have to remain fully engaged in this process!
Progress was made in the renewable energy sections of the bill by including landfill gas as a renewable energy. Adjustments in the Renewable Electricity Standards section also addressed the concerns expressed by some of the smaller utilities. Another major improvement for Indiana consumers was made when the bill changed from a full auction of the carbon emission allowances to a partial auction with some free allocations to emitting entities.
But there is still bad news and areas that must be addressed to keep electricity costs in Indiana fair, balanced and affordable. Changes made by the committee to the emission allowance formula will unfairly punish consumers in Indiana compared to other parts of the country. Utilities on the East and West coasts that are not heavily reliant on coal for their electricity will not have to pay as much for their allowances as Midwestern utilities, and therefore those consumers will see far less impact than we will. The new, unfair formula would grant only between 60 to 70 percent of the allowances Indiana utilities need to help their consumers. The emission allowance formula must call for a fair and equitable distribution of allowances for all emitting utilities or go directly to their customers who will ultimately be paying the costs. Consumers served by members of the Indiana Partnership for Fair & Affordable Energy must continue their efforts to contact members of Congress and express the need to keep Indiana’s electric rates AFFORDABLE!
Indiana is among the hardest hit states in the country under H.R. 2454. Our voices have helped improve the legislation for Indiana, but we have a long way to go. Ask Congress to keep our energy affordable. The time to get involved is NOW: House leadership intends to have this bill passed by the end of June!
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