EPSA argues against electricity production taxes.
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Press Release Summary:
Responding to proposals made by state officials in Illinois and Connecticut to impose state taxes solely at electricity generation, EPSA President and CEO, John E. Shelk stated that proposals should be rejected by public officials. To accept proposals would place supply of electricity to Americans in jeopardy. Tax proposals will make it much more difficult for necessary investment in new power generation resources and will make future electricity rates even higher.
Original Press Release:
Taxing Electricity Production Would Harm Consumers
"The future reliability of the nation's electricity grid should not be used as a political football."
WASHINGTON, D.C. - The following statement was released by EPSA President and CEO John E. Shelk in response to comments made yesterday by state officials in Illinois and Connecticut about proposals to impose burdensome new state taxes aimed solely at electricity generation.
"Today's Chicago Sun-Times reports that Illinois House Speaker Michael Madigan made the proposal in a closed door meeting. Yesterday, Connecticut Attorney Richard Blumenthal reiterated his proposal for a tax on electricity generation in remarks to a New England energy conference, though the Connecticut legislature has wisely not advanced his ill-advised plan.
"The future reliability of the nation's electricity grid should not be used as a political football. Proposals to tax electricity producers just as substantial new investment is necessary are misguided and should be rejected by thoughtful public officials. To do otherwise would place in jeopardy the very supply of electricity so critical to the lives and livelihoods of all Americans.
"Just yesterday, the Federal Energy Regulatory Commission released its 2007 Summer Energy Market Assessment. While forecasts are that the nation's electricity needs will be met this summer, projections last year by the North American Electric Reliability Council in its 2006 Long Term Reliability Assessment indicate that every region of the country will need substantial investment in new power generation resources over the next ten years to meet projected demand growth and replace aging facilities that are retired.
"Estimates of the amount of new investment that will be necessary exceed $500 billion. Competitive suppliers built almost all of the new power generation in the last building cycle and stand ready to do so again largely at their risk, not by shifting risks to ratepayers. However, these tax proposals will make it much harder for that necessary investment to occur on time and at the least possible cost. Raising taxes on electricity producers will simply not lower rates for consumers. If anything, such confiscatory tax proposals will make future electricity rates even higher."
Taxing Electricity Production Would Harm Consumers.PDF
CONTACT: JOHN SHELK
(202) 349-0143
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.
