Power Deregulation

Electricity was and still is a great invention, and it plays a critical role in our future as a sustainable nation. The only problem with electricity lies in the generation of the energy because the generation can bring about some of the greatest harm to the environment. The problem stems from the use of fossil fuels as the generating source for electricity, and one of the biggest problems is the burning of coal, the dirtiest of the fuels (Academy of Natural Sciences, 2004 ). Power generation of the past has been credited with adding nearly one-third of the principle greenhouse gas, or carbon dioxide to our earth's atmosphere ( Academy of Natural Sciences, 2004 ). This rise in carbon dioxide can be seen in Figure 2.

CO2 emissions

Figure 2. US Carbon Dioxide (after EIA, 2004).

The health and safety of both the world population and our environment has become a major concern of the power industry (whether they like it or not); making sure this remains an important issue after deregulation should be a concern for everyone. A large proportion of the cost of electricity today comes from paying people to make sure environmental standards are met, and it is good we (as a nation) are trying to see that the standards are met. However, we must do more than just try to measure up to the standards, the standards should be met period, and if they are not a horrendous penalty should then be enforced (Academy of Natural Sciences, 2004 ). The question is how will the new industry deal with environmental protection and control?

The general public thinks since there are currently environmental laws intact that after deregulation there would be no change, and a small impact on environmental health would be seen. People also tend to think that deregulation will only bring about a decrease in price, and view the whole concept as a good thing. However, this is not true electrical deregulation could have a serious effect on human health, and the environment we live in (Academy of Natural Sciences, 2004 ). While people are promised price reductions with an increase in supply, what they will really get will be higher prices and a reduction in supply (EIR, 2001).

Take California for example, shortly after deregulation occurred demand stayed steady, but prices sky rocketed and there was a drastic decrease in supply. California saw numerous rolling blackouts even at times when demand was much lower than previous peak demands (EIR, 2001). The energy bigwigs state that deregulation does work, it just has to be properly implemented, and the state of Pennsylvania is used as an example, seeing how they promote themselves as the national model for electricity deregulation (EIR, 2001). However, even the national model has its own problems, and state officials will not promise that deregulation will bring about lower prices (EIR, 2001).

The major problem with deregulation concerns the older power plants (built in the 50's, 60's, and 70's), not the newer facilities. These older plants were constructed during a time when environmental regulations were not as strict as today and pollution reduction technologies were unavailable. These older plants are allowed to pollute because they were constructed before the laws were set, and there is a loophole in the law that says it is okay for them to pollute (Academy of Natural Sciences, 2004 ). Below is a map that represents how many facilities are allowed to pollute in each state, and the results may be shocking (Figure 3).

Figure 3. Polluting Plants (Save the Clean Air Act, 2002).

The law says that it is okay for these plants to pollute, but it really is not. These older coal-fired plants release three times more NOx than the newer "environmentally friendly" coal-fired plants, and the old plants release 30 times more NOx than a generator supplied with natural gas (American Chemical Society, 1997). However, we must also remember that some of the smaller power companies also produce a great deal of pollution, and the main problem is that dirty plants can produce ten times as many pollutants as newer, cleaner plants (Academy of Natural Sciences, 2004 ). In the state of Ohio (where seven plants are being reviewed) it is believed that nearly 640 deaths occur each year due to pollution created from power utilities, and close to 400 of these deaths could be avoided if modern, cleaner burning machines were used (Save the Clean Air Act, 2002). Over half of America's energy is produced from burning coal, and this is one reason Americans are facing so many battles with air pollution (Figure 4).

Figure 4. Energy (MacNeil-Lehrer Productions, 2001).

The older, polluting power plants can create problems for the plants that are attempting to meet the air quality standards because the costs associated with keeping up with the environmental controls. It will cost the cleaner plants more money to produce the same amount of electricity as the dirty plants, and in a deregulated market the consumer is most likely to buy the cheapest source, even if it is not the most environmentally sound (Academy of Natural Sciences, 2004 ). A natural Resources Defense Council study found that out of the 50 largest power providing companies in the 37 most eastern states, not one of them could meet current air quality standards without costly emission control renovations (American Chemical Society, 1997). Thus, deregulation could mean more business for the old polluting plants, and this would not be good.

Figure 5 is a map of the United States that represents all current activity dealing with power deregulation.

deregulation map

Figure 5. Map (EIA, 2003).

References

Academy of Natural Sciences, 2004. Know Your Environment. Retrieved on February 18, 2004 from http://www.acnatsci.org/research/kye/15dereg1.html.

American Chemical Society, 1997. Environmental Science and Technology. Retrieved on April 11, 2004 from http://pubs.acs.org/hotartcl/est/97/oct/electric.html.

Battelle, 2003. Energy and Environment. Retrieved on April 18, 2004 from http://www.battelle.org/environment/airpollution.stm.

Clear the Air, n/d. The Clear Skies initiative vs. The Clean Power Act. Retrieved on May 2, 2004 from http://cta.policy.net/proactive/newsroom/release.vtml?id=24681&PROACTIVE_ID=cecfcfcecac9cecbcbc5cecfcfcfc5cecfc8cbcecececbcbc9c5cf.

Department of Environmental Protection, 2003. Power Shopping Homepage. Retrieved on May 3, 2004 from http://www.montgomerycountymd.gov/mc/services/dep/Energy/shopping.htm

EIA, 2000. The Changing Structure of the Electric Power Industry 2000. Retrieved on March 18, 2004 from http://www.eia.doe.gov/cneaf/electricity/chg_stru_update/chapter5.html.

EIA, 2002. Electric Power Industry Restructuring Fact Sheet. Retrieved on March 18, 2004 from http://www.eia.doe.gov/cneaf/electricity/page/fact_sheets/restructuring.html.

EIA, 2003. Status of State Electric Industry Restructuring Activity. Retrieved on March 21, 2004 from http://www.eia.doe.gov/cneaf/electricity/chg_str/regmap.html.

EIA, 2004. Carbon Dioxide. Retrieved on February 10, 2004 from http://www.eia.doe.gov/emeu/aer/txt/ptb1202.html.

EIR, 2001. Bush's Energy Pirates Are in Global Power Grab. Retrieved on May 1, 2004 from http://www.larouchepub.com/other/2001/2830privatiz_intro.html.

ESPERE-ENC, 2003. Spalanie pawliw. Retrieved on May 3, 2004 from http://www.atmosphere.mpg.de/enid/12y.html.

Government of Alberta, 2003. How does Deregulation Affect Me? Retrieved on March 22, 2004 from http://www.gov.ab.ca/home/plainTalk/Index.cfm?Page=473.

MacNeil-Lehrer Productions, 2001. America's Fuel Sources. Retrieved on April 23, 2004 from http://www.pbs.org/newshour/bb/infrastructure/power/#.

Palast, 2003. Power Outage Traced to Dim Bulb in White House. Retrieved on March 15, 2004 from http://www.gregpalast.com/printerfriendly.cfm?artid=257.

Save the Clean Air Act, 2002. Save the Clean Air Act. Retrieved on January 28 from http://www.savethecleanairact.org/public/.

Siemens, Westinghouse, 2004. Power Plant. Retrieved on January 28 from http://www.siemenswestinghouse.com/en/combinedcycle/index.cfm.

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