COPE, S.C. – Second District Congressman Joe Wilson Wednesday morning criticized the proposed cap-and-trade tax as harmful legislation that will make it harder for U.S.-based companies such as South Carolina Electric & Gas’ Cope coal-fired generating station to compete globally.

“Sadly, it has been indicated that it (cap-and-trade) would cause electric rates to skyrocket,” Wilson told a couple of dozen economic and government officials, along with plant employees, during his annual five-day tour of his district.

Rates “would double under the cap-and-tax program. Additionally, gasoline costs would double,” he said.

The sweeping climate change bill would cap greenhouse gas emissions – from industrial facilities and electricity generators – beginning in 2012.

In turn, the Environmental Protection Agency would establish two regulatory initiatives known as cap-and-trade programs, one covering greenhouse gas emissions and one covering hydrofluorocarbons.

The EPA would issue allowances to emit those gases under the cap-and-trade programs.

The legislation passed by a seven-vote margin in the House. The Senate is expected to take up the bill next year.

Wilson said the legislation has some traction because some of its proponents live in urban areas and drive for recreation.

“For us, it (driving) is commuting to work,” Wilson said. “Orangeburg County is a big county. So when people drive to work, it is not for fun. It costs a lot of money.”

Wilson said the cap-and-trade bill would also negatively impact economic development.

“Another downside of cap-and- tax ... it makes an American manufacturer noncompetitive in the world,” he said. “By doubling the cost of energy, our companies will not be able to compete in manufacturing with our competition of India and China. Have a clean environment, but we need to do all we can with the economic downturn we have to create jobs.”

Wilson said he supports the ‘all of the above energy plan’ such as alternative fuels for hydrogen fuel cell research and cellulosic.

“I want economical energy for the people who I represent,” Wilson said. “We need to be able to have affordable electricity so that people of all economic status can have a healthy and safe lifestyle.”

Mark Folsland, SCE&G Cope Plant manager, said the plant is currently facing some challenges.

He said the price of coal has increased fuel costs for the plant about 40 percent in the last couple of years. The annual budget for coal purchases is about $80 million for the plant, Folsland said.

“As well as this fuel cost going up, our industrial load has really fallen off,” he said, noting that many industries have cut back on operations, reducing the need for power. “Industry around here is really hurting. Our output is about 70 percent now.”

Folsland said the reduction in output has required some cost-cutting measures but has not required employee reductions.

With natural gas prices at about $25 to $30 a megawatt hour, compared to about $80 two years ago, the Cope plant has upped its natural gas use, he said.

At the conclusion of his comments, Wilson recognized and remembered the late Austin Cunningham, an Orangeburg businessman, for his civic leadership in Orangeburg County.

“What a statesman!” Wilson said. “There are so many wonderful memories I have of Orangeburg County.”

The Orangeburg County Development Commission presented Wilson with a calculator in appreciation for his service. Wilson smiled, quipping that the instrument would come in handy keeping up with future Orangeburg County job creation.

Wilson also toured of the SCE&G plant. His visit comes on the heels of the company’s recent implementation of emission reduction technology.

SCE&G recently installed a $69 million selective catalytic reduction equipment technology. The technology reduces nitrous oxide gases by more than 70 percent. The equipment officially went online Jan. 1.

The company has also recently installed equipment to reduce fly ash, dry scrubbers that remove 90 percent of the sulfur dioxide and low-nitrous-oxide burners.

“We have continued monitoring of the stack,” Folsland said. “We can see based on monitoring equipment ... that no mercury is coming out of the stack.”

The company Wednesday celebrated 2,960 consecutive days without lost time due to an accident. SCE&G officials plan to have a celebration when it hits the milestone of 3,000 days.

“Safety is our first priority,” Folsland said. “We have routine stop checks by supervisors to ensure that jobs are progressing in a safe manner.”

Currently, the $411 million plant employs about 79. At full power, the plant can generate power for an average of 385,000 homes, Folsland said.

In addition to coal, the plant also burns natural gas. The Cope plant is the county’s largest taxpayer at $7.2 million annually. SCE&G is a subsidiary of SCANA Corp.

T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at TheTandD.com

You must be logged in to comment.