As lawmakers in Washington debate the best way to control greenhouse gases, local power suppliers say one option under consideration could significantly increase costs for their customers.

South Carolina Electric and Gas spokesman Eric Boomhower says a cap-and-trade bill before Congress has the potential to add $100 more to the average electric bill.

“That’s going to be more than tough to swallow,” he said. “The people need to understand how this is going to impact them.”

A cap-and-trade bill sponsored by U.S. Rep. Henry Waxman, D-Calif., would set a cap on greenhouse gas emissions like the carbon dioxide emitted by coal-burning power plants. Companies could then reduce emissions to meet the target or buy credits from those that have reduced their emissions.

Tri-County Electric Cooperative spokesman Chad Lowder said he’s heard estimates that electric bills could go up somewhere between 30 and 50 percent if Waxman’s bill becomes law.

Lowder said many customers had a difficult time paying their bills last winter because of the economy.

“With cap-and-trade, it will really hurt the local person,” he said.

Santee Cooper Vice President Laura Varn said energy companies would have to pay between $20 and $40 for every ton of carbon that’s emitted.

“The impact to our customers would be significant with the current proposal,” she said.

Local utilities are adopting a wait-and-see approach.

At the Department of Public Utilities, Manager Fred Boatwright thinks the short-term implications of a cap-and-trade system won’t be too drastic. DPU purchases its power from SCE&G.

It “will cause electricity prices to go up in the long-term,” he said. But until something concrete happens with the legislation, it’s just speculation.

Albemarle Corp.’s Orangeburg Manager Rebecca Schmidt said her company is carefully watching the progress of the legislation.

Schmidt said Albemarle is implementing measures to reduce its energy consumption and greenhouse gas emissions.

“We do anticipate the financial consequences will be significant to all industry, not just the chemical industry,” Schmidt said.

She expects companies will have to think very hard about introducing new products if cap-and-trade becomes law.

Varn said there isn’t any commercially viable technology that can effectively reduce carbon emissions right now. Industry analysts predict such technology won’t available until 2020 at the earliest, she said.

In the 1990s, the federal government placed similar cap-and-trade restrictions on sulfur and nitrous oxide emissions. Varn said the technology to limit those emissions was available then.

SCE&G is moving forward with plans to build two nuclear power plants, which do not emit greenhouse gases.

But coal is still far and away the dominant power source in the Palmetto State. The state relies on coal for 61 percent of its electricity generation, according to a recently-released report from the State Regulation of Public Utilities Review Committee.

Lowder noted the state is not a fertile testing ground for renewable energy like solar, wind and hydroelectric power. He anticipates the legislation would benefit Western and Northern states and hurt the Southeast.

Nuclear energy is the short-term answer, he said.

“But it takes 10 years to build one. Those will come, but it doesn’t happen overnight,” he said.

Boomhower said any cap-and-trade system should be phased in gradually to allow the industry to develop carbon-reducing technology.

“The faster they have to be into place, the more difficult and costly it’s going to be,” he said.

The cap-and-trade bill could cost the average American family $3,128 annually, according to Congressman Joe Wilson, R-S.C. Wilson says that figure came from a Massachusetts Institute of Technology study on the subject.

“There’s not a family I know that can withstand a $3,128 expenditure,” Wilson said. He also said the legislation would push companies abroad due to rising energy costs.

U.S. House Majority Whip Jim Clyburn, D-S.C., said the legislation is designed to address three major priorities: creating clean-energy jobs, reducing America’s dependence on foreign oil and lessening the impact of global warming.

“There are a variety of regional concerns that are being taken into consideration. I am committed to ensuring that states like South Carolina are not penalized for their dependence on nuclear power,” Clyburn said.

U.S. Sen. Jim DeMint, R-S.C., said, “South Carolina families are already hurting in this recession but the Democrat cap-and-tax scheme would make things much worse by destroying jobs and imposing massive electricity taxes on families and small businesses.

“President Obama admitted his plan would force electricity prices to ‘skyrocket,’ even though experts say it won’t have any noticeable improvement of global temperatures.”

The Obama administration projects revenue from selling carbon credits will generate $645 billion over 10 years. Obama says he favors that money going toward investing in clean energy projects and providing tax credits for low and middle income families.

T&D Staff Writer Lee Tant can be reached at ltant@timesanddemocrat.com or by phone at 803-534-1060. Discuss this and other stories online at TheTandD.com.

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