Indirect Taxes through Energy

Early in president Obama’s campaign someone asked him about cap and trade.  He delared that, “Under my plan… electricity prices would necessarily skyrocket.”  Obama seems to be carrying out this famous “campaign promise”.  Don’t think so?  According to Phil Kerpen of Fox News, your electric bill will be impacted by an eight-fold or higher increase if you live in the mid-Atlantic states.

Think this won’t impact Douglas County?  The last major power plant OPPD built was coal fired, at Nebraska City.  Nuclear fired plants are impossible to build under current regulations – then as well as now.  With the troubles at Ft. Calhoun, OPPD has announced that natural gas will be a key part of filling the gap.  We are very happy with natural gas prices when compared to gasoline; however, Mr. Kerpen points out that natural gas was a key factor in the eight-fold increase.

The effect of this is a hidden tax on consumers.  Electric utilities pay fees to comply with regulations that are driving many plants to close.  Meanwhile rates go up for all power users.  The dollar is cheapened.  The sad thing is that the middle and lower classes are hit hardest!

The price increases are not a guess or projection; they are actual prices agreed upon by electric distributors on the grid.  They will go into effect in 2015 – of course, after the election.  But don’t you forget it when you vote this fall!

For an excellent analysis of the impact, give a listen to Mark Levin, on 5/22/2012, at the 78:21 mark.

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