The Charlotte Observer reported today that,
Duke Energy says Carolinas electricity rates would rise by at least 13 percent under President Obama’s plan to address climate change by auctioning off carbon credits…
… Duke CEO Jim Rogers, who supports the carbon cap, says Obama is wrong to insist that those allowances be initially auctioned to carbon emitters. Rogers calls an auction a “carbon tax” that would be passed on to consumers, with most of the burden placed on coal-dependent states such as the Carolinas.
“He’s going to create a market that’s going to dramatically drive up the costs for allowances,” Rogers said Monday. “It’s going to be a feeding frenzy.”
Allowances auctioned for $15 each would raise Carolinas rates 13 percent in 2012, when the system could go into effect, Duke estimates. A $30 auction price would raise Carolinas rates 27 percent, it says.
Obama’s proposed budget assumes allowances would go for $20 each.
Apparently as comic relief, the Charlotte Observer offered a response from the greens:
“He’s doing what the utilities are going to try to do – scare people,” said Stephen Smith of the Southern Alliance for Clean Energy.
As you know, of course, only the greens are allowed to “scare people.”