In recent times, the country’s Environmental Protection Agency has begun crafting new energy rules and regulations with regards to emissions of carbon dioxide. The governmental agency has taken these drastic and unparalleled steps due to the inaction and apathy of the Congress. On the whole, these new set of rules and regulations threaten the country’s energy prices, allocation as well as supply. For this reason, Congress must step in now before it is too late; it needs to all it can to not only emphasize its constitutional authority but restore a certain amount of balance to the country’s energy policy. It has to put an end to the ability of the EPA to make laws through regulation.
The energy situation of the country
With each passing year, the country’s energy landscape undergoes significant changes such as changes in rules and regulations governing the environment, the supply of natural gas at extremely low prices in addition to the expansion and operation of distributed energy generation that has an impact on not only the customers but suppliers and utilities as well. At the same time, there has not been much change in the industry as a whole. Customers continue to seek low cost energy while power utilities continue to deliver energy and make profits in the process. Overall, the changes brought in by the EPA will definitely change the utility and energy world for every concerned stakeholder.
Outcomes of the new rules and regulations
Of the various changes, the most significant one is going to be the impact on new and current generators. These new carbon dioxide regulations will change the manner in which power and utilities generators generate electricity. According to the new regulation, while no brand new coal generation units will be constructed in the country; there will also be restrictions on the levels of carbon dioxide that the current power plants can emit. As a result, the survival of coal generation units will come under threat. Along with the new sets of rules regarding carbon dioxide emission, there are also other rules that the EPA is planning to implement that will surely have a lasting impact on the availability of power and price. In a survey conducted by two American states, it has been found that these new changes could bring about a rise of over 60% in prices for customers.
Before coming out with any new rules or energy policy, it is imperative that the country’s policy and law makers should not only have the necessary information but have a clear understanding of the issues and points of disagreement as well as take in the consequences before arriving at a decision. Instead of the current one-sided approach, there should be a realistic study of the supply and demand status of the energy market.