Some context from the Senate Fiscal Agency report:
-- Appalacian coal was priced this week at $99.50/ton, up from $45/ton in early 2007.
-- Natural gas prices have increased by 45 percent since early 2007
-- The construction of one new $1.5 billion coal-fired electrical generating plant will lead to an overall electric rate increase of approximately 5 pecent for Detroit Edison and 7 percent for Consumers Energy (my note: these increases IN ADDITION TO increased coal costs and IN ADDITION to any deskewing costs for residential ratepayers)
Also, while Nick broadly labels the it "alternative energy" legislation, most of the additional costs he cites are not from alt energy at all, but from the "deskewing" portion of the package, and a pending rate case. NONE of the increases cited by Nick include future increases in the cost of coal or the likely carbon taxes or constraints that each of the three likely Presidential hopefuls has supported.
The renewable energy portion of the package would establish a modest amont of power that IS NOT dependent on the rising cost of fossil fuels. It would be a modest hedge against an uncertain energy future.....sort of a savings bond to cling to while the rest of your portfolio is going to he**.
