Friday, May 25, 2012

Obscene electricity price increase imposed by Obama EPA.

With the ongoing  shutdown of coal-fired generating plants by the Obama Administration's insane Green Energy policies, the recent power-capacity auction for the year 2015 produced a market-clearing price of $136 per megawatt, or eight times above the 2012 auction price. For northern Ohio, the price was a surreal $357 per megawatt – because northern Ohio has been heavily reliant on coal plants that will all be shut down by 2015.

This isn’t information from a model; it’s a real-world, market-driven data point. It’s going to cost that much to generate power without the coal plants.  These increases can only be passed on to the consumer – or taxpayer. This is what bidders actually committed to pay for power generating capacity.

Suppose the eight-fold increase in the auction price produced a commensurate eight-fold increase in the unit price of a kilowatt-hour for the consumer. (It may not, but it will produce a significant increase, probably on the order of 500-700%.). 

Imagine a $120 or so monthly electric bill exploding to $960 a month. The 500-700% increase would produce average bills running from $600-720 a month. Even just doubling the amount of people’s electric bills would entail a huge economic shock.

Only a small percentage of Americans would riot in the streets, but millions of Americans would begin fleeing the areas where they could no longer afford to live. Those who already live in rural parts of northern Ohio would no doubt turn exclusively to diesel generators, propane heaters, and wood fires. (Which we can expect would then be outlawed.) They and their rural confreres in the neighboring states would be joined by more and more refugees from the cities. Suburbanites would go off-grid to the extent they could, but would remain captive to urban regulation. Many in the Northeast and Midwest would make the long delayed decision to move elsewhere – south and west – even if that meant losing the investment in their homes. Still others would begin considering the move for the first time.

How many Americans will happily revert to living in 19th-century conditions?

The cost of everything in life that relies on electricity – in other words, everything – will skyrocket. Retailers, no matter what they sell, will have to charge much, much more for their products, not only because making them costs the producers more, but because keeping the lights on or the machines operating in the retail facility will cost so much more. 

This brilliant Obama Bomb will force thousands of businesses to shut down.
 
It will kill more jobs than anything has to date, making the Great Depression look like a roaring recovery.

It will make things we take for granted, like fresh produce, impossible to obtain unless you live right next to a farm.

It will distort and suppress all kinds of sophisticated and packaged production, including those related to the most basic necessities.

The massive shutdown of coal plants will compromise the reliability of the power grid in the Northeast. But we must also consider the likelihood that power companies will lose so many customers, and lose so much revenue, that they will go under.   -  So much for driving those self-igniting electric cars!

Keep in mind, this is not a prediction, it is future fact.  Electricity for the coming years has already been set.

This is government policy, made independently of any sort of outside crisis. Nothing imposes this on us except the Obama administration’s acceleration of hallucinatory ideological extremism.

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