Federal climate change legislation ahead

At the federal level, the single most important issue facing the utility industry is the likelihood of future legislation that would regulate carbon emissions and restrict carbon dioxide (CO2) emissions from power plants and other sources. We are responding to this issue with active advocacy for a cap and trade system that protects the environment while also mitigating costs for consumers.

In June, the U.S. House of Representatives passed a landmark bill in response to the threat of climate change. The centerpiece of the bill is a plan to regulate carbon emissions through a cap and trade program that would place a limit, or "cap," on the total amount of CO2 emitted in the country. Allowances would be distributed to CO2 emitters such as utilities, and entities would be required to buy or sell allowances based upon their needs in this new carbon market - the "trade."

WPPI Energy has already been successful in advocating for changes in the bill to protect utility customers from some of the costs of moving to a cap and trade system. The original bill proposed using an auction system to purchase CO2 allowances, but a group of Midwest utilities, including WPPI Energy, was able to prove that the costs of an auction system would result in alarming energy cost increases for consumers. The bill as passed does not employ auctions for utilities.

Momentum is clearly building in Washington on this issue. WPPI Energy will remain fully engaged in this debate. It is WPPI Energy's position that any final legislation should protect member communities and rate payers to the maximum extent possible; WPPI Energy will continue to advocate for a bill that balances the need to preserve the environment, ensure a secure energy future and mitigate costs for consumers.