Thursday, May 05, 2005

U.S. faces high summer power costs, adequate supplies - Electric Utilities - Gas/Utilities - Energy - Commodities - Economy

Power supply shortages are likely in California this summer. The fight for power evolves around the fight for controlling pollution. By paying to import power, Californians pay more per kilowatt. The payment is in effect in order to export the pollution to other states.

A few years ago, the state of North Carolina made a deal with the power companies. The deal equates to tax incentives to reduce pollution. Pollution numbers are now steadily improving.

Generating pollution and power become politically charged issues. It is hard to find reasoned discourse with solid facts about the trade-offs. None of us want to lose our memory from mercury poisoning and none of us want to kill our economy with extra expensive power. None of us want to send jobs overseas because China is willing to pollute at high levels.

All trade deals need to demand a pollution tariff until such time as developing countries are willing to meet minimum standards. It is silly for some nations to agree to standards while allowing other nations free reign.