Friday, 2 October 2009

Battle Over KY Electricity Prices Begin

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The left and those in the environment would like nothing less than to shut down coal mining in Kentucky. They see it as an evil that is "destroying" the planet. Now that they have allies in the White House look for them to start putting the screws to the coal industry.

The battle has engaged as the Obama administration begins a two prong assault. The first step is to up the regulatory scrutiny on the industry. A move that will make it much more difficult for the coal companies to be "compliant".

Earlier this month, the EPA announced plans to give 79 permit applications in four states additional scrutiny. The agency said it wants to make certain the proposed mines won't cause water pollution and violate the Clean Water Act. An initial review concluded all 79 probably would affect water quality and require additional study, the EPA said....

...The EPA said it expects to submit a final list of which permits among the 79 will undergo additional scrutiny in conjunction with the Army Corps of Engineers, which actually issues clean water permits for surface mines.

The goal is to stall or shut down the expansion of coal mining in the Appalachia. The second prong in the attack is the commission of a new "study" on the ill effects of mining on Appalachia.

The Obama administration is planning a new scientific study of how surface coal mines affect the environment in Appalachia.
The study is supposed to examine the loss of streams, water quality and the effect of mining on aquatic life, according to a regulatory notice filed by the U.S. Environmental Protection Agency. Surface coal mines may be degrading water quality and harming aquatic life, according to the notice published Friday in the Federal Register.

The goal of this study is simple. They want to inflate the damage caused by strip mining in order to scare people into opposing the practice. Make no mistake, the have a single purpose with these new actions. They want to begin the process for shutting down strip mining in Kentucky. While these people are trying to save the world, the impact on Kentucky will be horrific.

Limiting the mining of coal will reduce the available supply. Simple economics tell us that such a reduction in supply will drive up the costs for the good. What will that do to Kentucky? It will cause a dramatic rise in the cost of electricity. 90+% of our electricity in this state is generated from coal. By raising the price of coal the cost of electricity will skyrocket. Such a proposition would have a cascading affect across Kentucky's landscape. Not only would personal electricity costs go up, but the cost of goods generated in the state will go up with them. In addition, it will erase one of the few competitive advantages Kentucky enjoys over surrounding states. The net effect would be a serious blow the economic well being in Kentucky.
Many people in the eastern portions of Kentucky make their livelihood off the mining of coal. Putting these companies out of business will make a depressed area of the state sink to even lower levels. It would put a huge strain on our state resources that are meant to help the people from these poor areas.
Elk have been re-introduced into Kentucky in large part because of the existence of strip mines in eastern Kentucky. Shutting down strip minning in Kentucky will limit the areas where our flourishing elk herd can live.

People need to understand the negative consequences of shutting down our primary energy source. I have been on an active strip mine and they are not the foul places that the environmentalists like to imagine. They are a very sensible way to extract energy from the mountains while limiting the destruction. They also employ thousands of people who would otherwise be unemployed. They allow Kentucky to have some of the lowest electricity prices in the country. These factors need to be weighed before we move to shut them down.