Introducing: The Energy Welfare Department

What happens if our government makes a mistake about adopting certain elements of an energy policy that have a huge (negative) impact on consumers? Nothing. We will whine and complain – but the resiliency of the American people eventually surfaces and we adapt to the change. Soon, we are desensitized to the negativity of the situation and ready ourselves for the next change. I think it's safe to say that there is none in government positions who purposely set out to create havoc/hardships on their constituents. But, by the same token, why do they believe they are experts about energy and the environment?

Our government leaders have heard from hundreds of utilities; municipal systems, investor owned utilities, and rural electric systems alike….and all testimony pointed in the same direction – that a cap and trade system could be devastating to the electric industry and to the customers they serve. If the idea is to curb CO2 emissions, then a cap program might work. Utilities, as a whole, understand their role in reducing emissions that harm our environment. Still, the higher costs of new and upgraded generation, including transmission lines, will have to be passed on to the consumer…eventually. No company stays in business without passing operating costs on to the consumer.

It's the "trade" part of the program that has utilities screaming foul. Our governing body sees the "trade" portion as a way to raise money (from the American people) so there is some type of revenue stream other than our income, personal, sales and property tax system. They take the dollars from auctioning off the permits allocated by the federal government; those permits will be traded on Wall Street and then our government will use the funds to "give back" to the American people through other government programs. By the way, the Senate Finance Committee had a recent hearing about cap and trade….confirmation of what is written above: http://tinyurl.com/qr9ubp

When the government tells us they will be giving back the money collected through an energy tax, don't expect it to be direct cash to you. Instead, it will likely go to fund President Obama's proposed health care overhaul or our other economic problems.

Look for the creation of a new governmental agency called "The Energy Welfare Department." Roy Innis, National Chairman for the Congress of Racial Equality says that's where we are headed. Further, he says "Whatever the precise numbers may be in your state, there is no question but that higher energy prices discriminate against poor families and Americans of color." (Source: May 7, 2009; An Open Letter To Congress.) Higher energy costs drives up every American's direct costs and increases the price of every item we use in our homes.

Gwen Kautz, Customer Service Manager
Dawson Public Power District