The Palmetto Promise Institute (PPI) says proposed Environmental Protection Agency (EPA) rules could spike South Carolina’s energy costs. But the Conservation Voters of South Carolina (CVSC) says costs tend to be lower than even EPA projections once final rules of major policy changes are published.
The Palmetto Promise Institute (formerly the Palmetto Policy Forum) recently released a study showing recently proposed EPA rules on mercury and carbon dioxide emissions would increase electricity prices by 22 percent by 2030. Conducted by the Beacon Hill Institute at Suffolk University, the study said the EPA overestimates the cost savings that will be generated by reduced asthma-related illnesses and early mortality related to pollution.
Alan Hancock, CVSC campaigns director, said it is too early for most projections to be reliable. “That final rule is going to have some changes to the proposal, I’m sure.” He said that in estimating for its recent CARBON rule, the EPA proposed an 8 percent decrease in rates by 2030 based on the assumption that industry would adopt least-cost options for compliance, such as improving efficiency rather than building new infrastructure.
By the time a final rule is issued, the EPA could change the way nuclear energy is treated in terms of carbon dioxide reduction, which has been a major point of contention in South Carolina’s response to the proposed rule.
“There are also different ways EPA could account for the potential of solar or wind energy if they assume it could be cheaper than what they thought last summer,” Hancock said. “[Estimating] out 15 years is tricky.” Fluctuations in the price of natural gas could also have unforeseen effects on costs, he said.
While the PPI study cited “failure to estimate likely macroeconomic impacts of its proposed regulations” as a flaw in EPA calculations, Hancock said future market variables could have unpredictable effects on energy costs.
“It’s just better to look at the final rule,” he said. That will be published in June.
Utilities and high energy users expressed their concerns to the state Department of Health and Environmental Control (DHEC), which sent its response to the EPA’s proposed carbon reduction rules in December. Several recently have taken steps in advance of coming EPA rules, shutting down coal-fired plants and investing in the development of forthcoming nuclear plants.
Meanwhile, Duke Energy this week proposed several solar power programs to the state Public Service Commission. Those include utility-scale solar and community solar. Duke Energy said it expects to issue a request for proposals this year for more than 50 megawatts of large-scale solar, which it said is among the most efficient ways to generate solar power due to economies of scale.
