With the continued rise of CO2 emissions resulting from the growth in combustion of fossil fuels, coupled with the potential increase in state and federal regulation of CO2 emissions, cost impacts on the electric utility industry could result in a nationwide electric-rate increase. Highlighted in an article for Natural Gas and Electricity, R. W. Beck presented the economics of CCS to the U.S. Senate Energy and Natural Resources Committee. By fusing technical expertise with business and financial implications of CCS, our analysis presents the future cost implications on electric utilities and consumers.

The predominant persuasion is that regulations and legislation will continue, and the electric utility industry will need to find better ways to regulate their CO2 while keeping production high and costs low. With the rise in CO2 regulations and cost to adhere to these regulations, electric utilities will essentially pass this cost on to the consumer.

“The carbon footprint of the electricity sector is hanging in the balance, while we await passage of substantive carbon legislation in the U.S.,” says Vince Hahn, Vice President of Global Asset Consulting. “Utilities and independents are in the position of having to develop new projects before the details of a national carbon policy are laid out. For their part, lawmakers must balance greater environmental scrutiny against the impacts of low carbon caps or high taxes on U.S. power prices. This is one of the most critical environmental and economic policy issues of the past century.”

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For more information on this subject and other R. W. Beck expertise, please contact:

Tim Corrigan
Executive Vice President, Energy
PH 303.299.5328
email