ears) from renewable sources by 2020. Florida, while not an RPS state, passed legislation in 2008 that authorizes its Department of Environment Protection to develop a greenhouse gas trading program. In 2009, Florida’s coal generation went down 17 percent, its gas generation went up 14 percent and its electricity price went up 6 percent.
Other states with a lower coal share include Alabama and South Carolina, where coal generation declined by 25 and 15 percent, respectively, in 2009. While neither state has enacted a cap-and-trade or RPS program, both states capitalized on lower natural gas prices to switch from coal-fired generation to natural gas-fired generation, reducing carbon dioxide emissions as a result.
In 1988, coal’s share of electricity generation peaked at 56.9 percent of the market, over 12 percentage points higher than it is today. Athough coal lost market share thereafter, its generation levels in 2009 were still almost 15 percent higher than in 1988. During that time, sulfur dioxide emissions declined by more than 40 percent and nitrogen oxide emissions by more than 60 percent. Meanwhile, electricity prices increased by more than 50 percent. Many factors have entered into that increase, including: increases in fuel costs; regulatory impacts from the amendments to the Clean Air Act and other legislation; state regulation and legislation affecting fuel mix, emissions output, and the pricing of electricity; and proposals by the federal government to increase regulations and enact environmental and other legislation affecting the fuel mix of electric generators.
Consumers need to realize that these regulatory and legislative policies increase the price of electricity. And with pressure from the administration to pass energy and environmental legislation this year, U.S. utility companies are on notice that actions need to be taken to reduce emissions from fossil-fired generators.
Energy Information Administration, Electric Power Monthly, March 2010, http://tonto.eia.doe.gov/ftproot/electricity/epm/02261003.pdf
E&E Publishing, CLIMATE: Report shows decline in U.S. utilities’ CO2 emissions, June 29, 2010, http://www.eenews.net/eenewspm/2010/06/29/5/
Benching Air Emissions of the 100 Largest Electric Power Producers in the United States, June 2010, http://www.nrdc.org/air/pollution/benchmarking/2008/benchmark2008.pdf
Environmental Protection Agency, Air Transport, http://epa.gov/airtransport/
E&E News, Air Pollution: Power plant rules a ‘work in progress,’ EPA air chief says, July 6, 2010, http://www.eenews.net/eenewspm/2010/07/06/1
All state electricity generation and price data are from the Energy Information Administration, Electric Power Monthly, March 2010, http://tonto.eia.doe.gov/ftproot/electricity/epm/02261003.pdf
Institute for Energy Research, Energy Regulations in the States: A Wake-up Call, https://www.instituteforenergyresearch.org/states/virginia/ and https://www.instituteforenergyresearch.org/states/west-virginia/
Institute for Energy Research, Energy Regulations in the States: A Wake-up Call, https://www.instituteforenergyresearch.org/states/ohio/
Institute for Energy Research, Energy Regulations in the States: A Wake-up Call, https://www.instituteforenergyresearch.org/states/pennsylvania/
Institute for Energy Research, Energy Regulations in the States: A Wake-up Call, https://www.instituteforenergyresearch.org/states/north-carolina/
Institute for Energy Research, Energy Regulations in the States: A Wake-up Call, https://www.instituteforenergyresearch.org/states/florida/
Energy Information Administration, Monthly Energy Review, http://www.eia.doe.gov/emeu/mer/pdf/pages/sec7_5.pdf , and Annual Energy Review, http://www.eia.doe.gov/emeu/aer/pdf/
Energy Information Administration, Monthly Energy Review, http://www.eia.doe.gov/emeu/mer/pdf/pages/sec9_14.pdf