Last week the U.S. Energy Information Administration reported a shocking drop in power sector coal consumption in the first quarter of 2012. Coal-fired power plants are now generating just 36 percent of U.S. electricity, versus 44.6 percent just one year ago.
Here’s how fast Barack Hussein has sent prices into the stratosphere:
Last week PJM Interconnection, the company that operates the electric grid for 13 states … held its 2015 capacity auction. These are the first real, market prices that take Obama’s most recent anti-coal regulations into account, and they prove that he is keeping his 2008 campaign promise to make electricity prices “necessarily skyrocket.”
The market-clearing price for new 2015 capacity — almost all natural gas — was $136 per megawatt. That’s eight times higher than the price for 2012, which was just $16 per megawatt. In the mid-Atlantic area covering New Jersey, Delaware, Pennsylvania, and DC the new price is $167 per megawatt. For the northern Ohio territory served by FirstEnergy, the price is a shocking $357 per megawatt.
Why the massive price increases? Andy Ott from PJM stated the obvious: “Capacity prices were higher than last year’s because of retirements of existing coal-fired generation resulting largely from environmental regulations which go into effect in 2015.” Northern Ohio is suffering from more forced coal-plant retirements than the rest of the region, hence the even higher price.
The immediate effect will be to lower our standard of living. Higher unemployment will quickly follow, as the increased costs hits businesses.
This gives an idea of how many coal plants Obama and his maniacal ecofascist attack dogs in the EPA plan to close:
If a foreign army came across the ocean to shut down our power plants, many of us would be out there throwing rocks at tanks. Yet there are Americans who would vote for more of the same, so long as it is inflicted by our own rogue government.
On a tip from DaddyOD.