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AISI Tells EPA Power Plant Proposal Could Increase Electricity Costs for Steelmakers
12/02/2014 - The Environmental Protection Agency’s (EPA) proposed power plan could raise electricity costs, damage competitiveness and hurt American steel jobs, says the American Iron and Steel Institute (AISI), the trade association representing three-quarters of steel capacity in North America.
In formal comments to the EPA , as part of the agency’s rulemaking process, AISI president and CEO Thomas J. Gibson said, “the EPA’s plan to further regulate electricity from power plants may lead to higher costs of electricity to large industrial customers like steel, while potentially lessening the quality and reliability of the electric supply that is essential for our industry to operate and succeed. In addition, the plan could put steel producers in the U.S. at a disadvantage against competitors in other nations that generally have higher rates of greenhouse gas emissions, and some of which benefit from subsidized energy costs. Such a result would not only be detrimental to the domestic steel industry and its employees, but to the larger global environment.”
Gibson said that in its proposal, EPA indicates that their plan would cause nationwide electricity prices to increase between six and seven percent. He said this electricity economic impact will be exacerbated for the steel industry due to the regional differences in current fuel mix and the cost to switch to other fuels for the generation of electricity.
“EPA’s plan will have a disproportionate impact on coal-fired utilities, many of which are concentrated in areas where steel is produced. Industrial customers, especially steel producers, will be charged to offset the cost of replacing coal capacity with other sources including the cost of new transmission infrastructure. Coupled with the global competitiveness challenges this plan presents, implementation of this plan would hit the steel industry hard,” Gibson concluded.
AISI also this week joined a group of 16 business associations in signing similar comments on the plan’s impact on manufacturing jobs. A full text of AISI’s comments to EPA are here.
Gibson said that in its proposal, EPA indicates that their plan would cause nationwide electricity prices to increase between six and seven percent. He said this electricity economic impact will be exacerbated for the steel industry due to the regional differences in current fuel mix and the cost to switch to other fuels for the generation of electricity.
“EPA’s plan will have a disproportionate impact on coal-fired utilities, many of which are concentrated in areas where steel is produced. Industrial customers, especially steel producers, will be charged to offset the cost of replacing coal capacity with other sources including the cost of new transmission infrastructure. Coupled with the global competitiveness challenges this plan presents, implementation of this plan would hit the steel industry hard,” Gibson concluded.
AISI also this week joined a group of 16 business associations in signing similar comments on the plan’s impact on manufacturing jobs. A full text of AISI’s comments to EPA are here.
