Our take: President Obama's proposal to limit carbon dioxide emissions
Wednesday, June 26, 2013
President Barack Obama announced yesterday at Georgetown University his climate action plan to reduce carbon dioxide emissions, including creating greenhouse gas standards for new and existing generating units.
While the actual carbon dioxide standards are not yet developed, the overarching plan outlined by the president includes deploying clean energy; setting standards for the transportation industry; promoting energy efficiency; and reducing other greenhouse gas emissions such as hydrofluorocarbons and methane.
Specifically, from an electric power industry aspect, Obama directed the Environmental Protection Agency to begin work on a set of CO2 standards for new and existing power plants.
Note that the EPA has already acted to limit emissions for new fossil-fueled plants, but that regulation is not yet final.
He also committed to increase permits for renewable energy on public land, expand and modernize the electric grid, and increase funding for clean energy technology.
“We have analyzed possible impacts on our customers. In many scenarios, carbon dioxide regulations would be very costly to our customers and to Kentucky’s economy,” said Paul W. Thompson, chief operating officer for LG&E and KU. “It’s our hope that proposed climate regulations will be well-thought-out and consider the costs to consumers and businesses as well as the possible benefits to the environment. As always, we will comply with regulations that are put into place.”
LG&E and KU are currently spending $2.3 billion to meet the current environmental air regulations.
According to Edison Electric Institute, in 2012 the U.S. power sector carbon dioxide emissions were 15 percent below the 2005 emission levels and were at the lowest levels since 1996.
This trend is expected to continue as companies, such as ours, retire their older coal-fired generation and replace it with cleaner, natural gas-fired generation.
