November 30, 2005

Economists Say Regional Climate Pact Would Lower New York Consumer Utility Bills
Governors Urged to Resist Mounting Industry Pressure as Final Agreement Nears

Albany, NY - A new economic analysis conducted as part of the multi-state negotiations over a plan to cut power plant global warming pollution predicts substantial consumer savings from the climate policy coupled with increased investment in energy efficiency efforts.

Even at current efficiency investment levels, the state climate accord would save the typical residential customer about $50 per year, according to new analysis by the Massachusetts Division of Energy Resources with the Economic Development Research Group on behalf of the nine governors. Moreover, the findings suggest that increased investment to tap additional energy savings opportunities could more than double the household cost savings.

“This is a two-for-one holiday give away; cutting emissions and cutting costs at the same time,” said Jason K. Babbie, Senior Environmental Policy Analyst with the New York Public Interest Research Group. “With the concerns over energy costs, this is a huge, untapped opportunity that our elected officials would be crazy to pass up.”

The new data comes as the governors are moving to conclude a final agreement on the climate pact, which is expected to cut emissions of heat-trapping carbon dioxide emissions 10 percent by 2020 by combining new pollution limits with an emissions trading market that minimizes costs and rewards companies that outperform the standards.

Participating states include Delaware, Maine, Massachusetts, Connecticut, New Hampshire, New Jersey, New York, Rhode Island and Vermont. The standards are expected to become a model for other states to follow.

In addition to the support of a wide-ranging coalition of environmental groups, the plan has been endorsed by numerous other groups and corporations, including Bank of America, Staples, Keyspan, National Grid, Pfizer, Entergy and Calpine.

“This is a sensible, affordable standard that will put the Northeast states at a technological and competitive advantage as the rest of the nation begins to tackle the problem,” said Fred Zalcman, Executive Director of the Pace Law School Energy Project. “If this new analysis shows anything, it shows that we should be seeking greater reductions in global warming emissions from the electric industry,” said Zalcman.

The governors remain under intense pressure from industry lobbyists and some power generators. Opponents of the measure, the owners of coal fired power plants and their allies, have raised exaggerated concerns about the effect on energy costs. Ironically, these arguments come as energy companies post record profits.

“The electric power companies who opposed this pact are hiding behind a false argument. What the Northeast truly cannot afford is to let a few polluting companies stand in the way of an initiative that will protect both our environment and consumers’ pocketbooks,” said Christine Vanderlan, Global Warming Program Director with Environmental Advocates of New York. “We hope that Governor Pataki and the other eight governors will continue to stand firm in their support for this important plan and move to quickly announce a final agreement.”