By propping up coal, lawmakers will cause higher energy prices for Kentuckians | Opinion
Lawmakers in Frankfort, seeking to protect Kentucky’s coal industry, are pushing legislation that will create a new layer of bureaucracy overseeing the state’s electrical utilities. While the bill’s supporters mean to protect the state’s coal workers, this new law will result in Kentuckians paying higher – not lower – electric bills.
Known as Senate Bill (SB) 349, the proposal creates an Energy Planning and Inventory Commission (EPIC) that is appointed by the legislature, with the goal of mandating that the state’s electrical utilities do not shutter older, aging, and economically inefficient coal powered electrical plants.
But it’s simple economics: requiring the state’s electric utilities to operate inefficient plants means Kentuckians would be getting increasingly expensive electricity because over time, it costs more to run these facilities than it does modern and efficient power plants.
What would make sense for Kentucky, is to build newer electrical plants – powered by sources like natural gas – that cost less to operate than an outdated coal plant. But what EPIC seemingly plans to do is reverse that logic and divert utility investments away from modern power plants in order to keep inefficient coal plants online longer.
Of course, there are voices in Kentucky challenging SB 349 because they oppose burning coal for energy. But my organization is not anti-coal. In fact, we disagree with the decision made by other states, like Illinois, to close their coal plants. Those closures created energy shortages which have resulted in higher electric bills. But, Illinois is not Kentucky. In the Bluegrass State, shuttering coal plants and investing in more efficient energy sources will actually reduce electric bills and ensure adequate power.
Another issue with creating EPIC, is that it is designed to challenge the Kentucky Public Service Commission (KPSC) the agency mandated to implement policies for the benefit of electric customers. Keep in mind, there are robust and longstanding processes built into the system that require large amounts of public input before the KPSC makes any decision. EPIC would seek to upend these types of KPSC decisions, and allow coal interests serving on EPIC to thwart coal plant closures even if it meant higher power bills for all Kentuckians.
Additionally, the upcoming presidential and congressional elections are toss-ups because the nation is so evenly divided politically. The next few elections could see the federal government become more progressive. Should that happen, there could be federal policies which require Kentucky to quickly shutter older coal plants. If this occurs, and the state has not made common sense investments in cleaner technologies, then Kentucky could have too little energy.
Lastly, today, only 1 percent of Kentucky’s energy is derived from renewables — which typically create lower cost energy because they don’t have variable fuel costs. Wind and solar are free resources, unlike coal and natural gas. Supporters of SB 349, are not conveying an accurate picture when they say Kentucky is going to be overly dependent on clean energy technologies without that legislation.
Setting aside the complicated politics around energy issues, implementing SB 349 only means favoring coal power over everything else, including low electric bills and reliable energy. Therefore, I urge Kentucky’s leaders to reject this proposal that will increase the cost of living for residents of the commonwealth.
Gary Meltz is the Executive Director of Power for Tomorrow.
