Wisconsin utilities release study on economic impacts of climate change legislation

From a news release issued by WPPI Energy:

Today [April 1], the Midwest Consumer Utilities, which includes Wisconsin-based study participants Madison Gas and Electric Company (MGE) and WPPI Energy, released a study that shows Wisconsin consumers can expect higher energy costs under a federal greenhouse gas (GHG) cap and trade regime, and could face alarming economic impacts under some program designs.

“Climate change presents a serious challenge that must be met,” said Roy Thilly, President and CEO of WPPI Energy. “This study shows that how you address the problem matters. An auction will cause electricity prices to rise significantly to the detriment of all customers in Wisconsin. I hope the sober results help guide the outcome of the federal debate.”

The study projects the potential rate impact of various legislative approaches on the Midwest Utilities’ customers and on the economies in their respective states. It estimates the annual average rate increases for consumers in Wisconsin could be 19 percent to 63 percent from 2012 to 2030, under a cap and trade program that employs a 100 percent auction method. If the cap and trade program were designed using a method that gives the cap and trade revenue back to customers, Wisconsin customers still could see an annual average increase of 3 percent to 26 percent, according to the study.