Face alternative energies realities
As Congress begins the debate again over federal cap-and-trade/climate-change legislation, Pennsylvanians need to wade through the thick air to get a true assessment of our energy needs, along with the economic impacts associated with the sources that produce electricity we depend on daily.
While the oil spill and recovery efforts in the Gulf of Mexico appear to have created momentum for federal action, I'd suggest these motives are misguided and require a careful analysis of the facts to avoid knee-jerk reactions that fly in the face of the reality of our energy infrastructure. Not doing so by going along blindly will ultimately cause a long-term economic catastrophe for Pennsylvania and the entire country.
It is clear that the bills being considered in Congress are all focused on moving the country away from coal — our most affordable and reliable source of electricity — for now and for many years to come.
Let's consider some facts.
A just-released study on the economic impacts of coal mining in Pennsylvania, issued by the Pennsylvania Economy League of Southwestern Pennsylvania, reveals that the coal industry contributes more than $7.5 billion and 41,500 jobs to the commonwealth's economy every year.
It also is important to remember that more than half of the electricity consumed by Pennsylvanians is derived from coal, while solar and wind make up just more than 1 percent.
Even more, 59 of our 67 counties have coal-related businesses, and coal equipment and machinery is one of the few industrial sectors in our state experiencing growth.
While the various alternative energies have a role in our energy consumption, they clearly cannot meet the country's current demand for electricity, nor will they do so as that demand grows by an estimated 31 percent over the next 25 years, according to the U.S. Environmental Protection Agency. These energy sources already receive significant state and federal subsidies, despite the fact that they have clearly not been practical, reliable or affordable options.
The U.S. Energy Information Administration (EIA) calculated the estimated costs per kilowatt hour for electricity generated by renewable sources in Pennsylvania for 2007 against the cost for coal. Solar energy costs between $27 and $41 per kWh, depending on specific technology, and wind averages $7.50 per kWh. The cost to generate electricity from coal is only $5.70 per kWh.
Another theme raised in arguments to dump additional tax dollars into renewable energy options and mandate a greater percentage of their use in our nation's energy portfolio is the promise of "green jobs." Recent headlines even touted the potential of 129,000 green jobs if Pennsylvania alone simply increased its current alternative energy mandates.
According to a recent review by an energy and environmental forecaster, Energy Ventures Analysis, Inc., (EVA) of Arlington, Va., it turns out these "jobs" really are "job years" over a 15-year period, and even that number is over-estimated by a whopping 93,000 job years. The real number of sustainable jobs from expanded alternative energy is closer to just over 2,000.
The coal industry isn't the only organization opposed to this climate-change legislation. The Pennsylvania Chamber of Business and Industry, and the American Council for Capital Formation (ACCF) predict the enactment of a cap-and-trade bill would cost Pennsylvania 90,000 jobs, increase gas prices by at least 19 percent, and cost each Pennsylvania family approximately $1,500 annually by the year 2030.
The average person consumes the equivalent of 20 pounds of coal a day to meet his or her energy needs for lights, cooking, electronics and other essentials needed every day. Driving up the cost of electricity at a time when there is concern over pending expiration of electricity rate caps and predicted rate hikes, along with pending expiration of federal tax cuts and an overall unsettled economy, will impose an enormous financial burden on taxpayers, especially in states like Pennsylvania.
The dog days of summer provide a reminder about the need for reliable electricity, and coal is the source that keeps our homes and workplaces cool in a cost-efficient manner when the temperature spikes.
As taxpayers get the facts, rather than hot air, about our electricity sources, their cost and their potential, they should discourage our elected officials from going "all in" on options that are unrealistic, not supported by fact, and harmful to Pennsylvania's economy.
George Ellis is president of the Pennsylvania Coal Association.