Get your business ready for a spike in electricity prices of as much as 12%, the result of tougher EPA regulations on a common source of power.
The agency is instituting new emission rules on coal-fired power plants to control ozone and toxic emissions. And the threat of resulting predicted price hikes isn’t the usual dire warning from partisan lobbying groups or think tanks.
This assessment comes in a new analysis by the Government Accountability Office (GAO).
The increase in electricity prices is coming because some owners of the older coal-fired plants targeted by EPA emission control rules, particularly in the Midwest and South, are expected to close rather than invest in the modern emission controls.
Utilities pass on control costs
The facilities that do decide to add control systems will be spending billions to comply with four major Clean Air Act rules from EPA, according to the GAO report.
States most likely to see price increases are Arkansas, Kansas, Louisiana, Missouri, New Mexico, Oklahoma and Texas.