Renewable Energy Installations in WI

Wednesday, August 25, 2010

Xcel's CEO among those calling for a tax on carbon

From an article by Neal St. Anthony in the Star Tribune, Minneapolis-St. Paul, MN:

Dick Kelly, CEO of Xcel Energy Inc., is irked that Congress hasn't raised his taxes.

"We need a price on carbon," said Kelly, who runs a multistate utility in the vanguard of next-generation efficiency and cleaner-energy programs.

Kelly, Duke Power CEO Jim Rogers and other utility executives have been expecting Congress to pass cap-and-trade legislation, which would effectively place a tax on carbon emissions. Both Xcel and Duke have moved expeditiously in recent years to modernize old coal-fired plants, switch to wind and natural gas, and implement conservation programs in a bid to cut their carbon dioxide emissions by up to 25 percent by 2025 and meet state mandates to reduce pollutants that climate scientists say lead to global warming.

"The industry could have worked with the 'Kerry-Lieberman' bill in the Senate, but the Republicans backed away and started calling it 'cap-and-tax,'" Kelly said.

So instead of providing incentives for the utility industry to invest in next-generation, clean-coal programs and promising carbon-diversion efforts, the U.S. Senate is now considering more rules and mandates instead. Kelly and Rogers think that's a mistake.

'Let's move forward'

"There is growing consensus in the electric utility industry to act now, so let's move forward," Rogers wrote earlier this summer. "Duke Energy and other electric utilities are already scheduled to retire and replace virtually all coal and other large power plants with cleaner and more efficient technologies by 2050.

"A clear and predictable federal energy and climate policy can accelerate these projects and put private capital to work more rapidly. It can also create millions of jobs. This would not only reduce greenhouse gas emissions but would also reduce sulfur dioxide, nitrogen oxide and mercury emissions. That would improve air quality across the board."

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