The American Thinker just informed me of the destructive force on the horizon that is the increase in energy prices over the next few years. They pull a quote from the Chicago Tribune that proves we are in for a rough time as the cost of electricity increases via government regulation instead of natural market forces. Increases in costs within a free market I can understand. With those natural increases comes increased investment into new sources of energy (mainly clean and sometimes cheaper energy) because of the increase in earnings from energy companies they are freer to invest. These investments can take years to play out, but we would be able to wait, because energy price increases would happen slowly over years as well. But no, we won’t be seeing much of that.
Because of environmental regulations put into place during Barack Obama’s short time as our President, coal fired power-plants (which account for 45% of our energy production) must undergo a massive retrofitting process to be more environmentally friendly which I imagine is going to cost more than it’s worth if just one company, American Electric Power is any indication:
American Electric Power, one of the country’s largest coal-burning electricity generators, said Thursday it will retire nearly a quarter of its coal-fueled generating capacity and that it will spend up to $8 billion to retrofit remaining units to meet regulations that start taking effect in 2014. (Chicago Tribune)
So here’s the deal. Firstly, coal power plants are going to close because it is too expensive for energy companies to retrofit them which will reduce the amount of power our nation produces. Secondly, the retrofits on power plants that will not close do nothing to increase efficiency, but only to reduce emissions, which unnecessarily increases the cost of energy. We will be paying significantly more for less electricity. Thank you Negative Nancy Government Mother.