Writing on behalf of the 42 million co-op consumers, Glenn English, CEO of the National Rural Electric Cooperative Association, sent letters to 13 U.S. Senators who raised concerns about the inequitable impact of S. 1733, the “American Clean Energy and Security Act.”
On November 12, Senator Tom Harkin (D-IA) and 13 other Senators sent a letter to the Senate Leadership expressing their reservations about the proposed allocation of carbon allowances, a key provision of the bill.
In addition to Senator Harkin, the letter was signed by Sen. Al Franken (D-MN), Sen. Roland Burris (D-IL), Sen. Byron Dorgan (D-ND), Sen. Herb Kohl (D-WI), Sen. Russ Feingold, Sen. Michael Bennet (D-CO), Sen. Kent Conrad (D-ND), Sen. Mark Udall (D-CO), Sen. Sherrod Brown (D-OH), Sen. Debbie Stabenow (D-MI), Sen. Robert Byrd (D-WV), Sen. Carl Levin (D-MI) and Sen. Amy Klobuchar (D-MN) .
According to the joint letter, “[u]nder the proposed 50/50 formula, utilities that are more coal dependent will need to purchase even more allowances than they would have if all allowances were allocated based on emissions, and those higher costs will be passed on to their customers.”
The Senators advocate instead that “emission allowances allocated to the electricity sector – and thus, electricity consumers – be fully based on emissions as that appropriate and equitable way to provide transition assistance in a greenhouse gas-regulated economy.”
English thanked Senator Harkin and the others for their leadership on the difficult question of how to pay for changes necessary for reducing CO2 emissions in the electric sector.