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EPA-Mandate Will Mean Higher Electricity Costs, Says Obama Official

Carbon capture and sequestration technology (CCS) mandated in a proposed EPA greenhouse gas regulation on new power plants will mean higher electricity costs, a Obama administration official admitted to a House of Representatives subcommittee.

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When asked by how much CCS will add to the cost of electricity generated by coal plants, Department of Energy Deputy Assistant Secretary for Clean Coal Dr. Julio Friedmann told the House Energy and Commerce Subcommittee on Oversight and Investigations that first generation technology will add “something like a 70 to 80 percent increase on the wholesale price of electricity.” The cost increase from more efficient, second generation CCS is expected to onlybe half that amount.

CCS is the cornerstone to EPA’s proposed greenhouse gas regulations for new power plants. The technology is still not commercially viable. As Dan Byers wrote in a post on EPA’s proposed regulation:

The EPA is mandating carbon capture sequestration (CCS), but as an integrated technology, CCS has never been demonstrated on a commercial power plant, and is nowhere near ready for broad deployment. This fact has been argued by the federal government itself….

Not only does the Obama administration acknowledge that the technology isn’t ready, it also admits that it will significantly increase electricity costs.