NIPSCO warns of "Dire Outcomes" From Climate Change Bill

[rambone]

Northern Indiana Public Service Company (NIPSCO), is the largest utility country in the state. They finally have come out and started warning people of how badly this law could hurt its customers. Better late than never. Indiana is going to get creamed if this passes. I'd be surprised if the steel industry survives.

NIPSCO warns of climate bill's 'dire outcomes'

Indiana's largest utility has launched a campaign against climate change legislation that passed the U.S. House, telling customers if it becomes law electric rates could soar up to 130 percent over the next 25 years.

Bill inserts going out to NIPSCO customers are warning they could face "additional costs of more than $100 million in 2012" if the Waxman-Markey American Clean Energy & Security Act becomes law. A form letter on the company's Web site that is available for mailing to elected representatives cites "dire outcomes."

NIPSCO's stance is in marked contrast to some other utilities, including Duke Energy, which maintains the House bill provides a "glide path" to limiting carbon dioxide emissions while keeping costs to customers under control.

Exelon Corp., owner of ComEd in Illinois, two weeks ago withdrew from the U.S. Chamber of Commerce over the chamber's aggressive stand against Waxman-Markey. On the same day, Exelon CEO John Rowe called for implementing a U.S. carbon cap and trade system, telling attendees at an energy efficiency conference: "The carbon-based free lunch is over."

NIPSCO spokesman Nick Meyer said of the bill inserts, "The single most important message for us is, we are not opposed to addressing climate change. But we want to make sure there are no significant cost increases for our customers associated with this legislation."

Estimates of how much electric prices would increase under Waxman-Markey vary widely. A U.S. Energy Information Agency report prepared for Congress said electricity prices nationwide will be only 3 percent to 4 percent higher by 2020 if the bill is made law, although by 2030 they could be 19 percent higher.

Waxman-Markey would set up a carbon cap and trade system under which utilities would buy "allowances" to release carbon dioxide above certain limits. They would buy them from utilities or other industries operating under their limits. Carbon dioxide emissions have been identified by scientists as a key contributor to global warming.

In a letter appearing in the downstate Jeffersonville News and Tribune after the bill was passed, Duke Energy Indiana President Jim Stanley argued allowances allocated to industries hard hit by carbon caps will protect consumers in coal-dependent states such as Indiana.

"This is a proven, efficient approach that allows companies to reduce their emissions with the least amount of impact on customer bills," Stanley wrote.

Duke Energy has 780,000 electric customers in Indiana and 4 million nationwide.

NIPSCO has 712,000 natural gas and 457,000 electric customers spread across northern Indiana.

NIPSCO in its bill insert tells customers it supports environmental legislation that is fair and equitable but it opposes Waxman-Markey, claiming it would have a "disproportionate negative economic impact" on Indiana.

The Hoosier Environmental Council has been fighting to set the record straight when it comes to the cost of a carbon cap and trade system, said Executive Director Jesse Kharbanda. He said estimates like NIPSCO's are often derived from "wildly inaccurate assumptions" about the price of allowances.

Meyer said NIPSCO derives its calculations of the bill's cost from its own research and analysis.

Kharbanda in turn cites a study from the Washington, D.C.,-based group Resources for the Future, which shows Indiana industry would rank No. 2 nationally for per capita carbon allowances government would grant to industries hardest hit by carbon caps, thus driving down costs for utility customers.

Kharbanda said utilities definitely have the right to discuss the effect climate change legislation would have on costs and prices.
"But if it gets into the realm of lobbying, it certainly could be troubling," he said.

To see the NIPSCO form letter opposing federal climate change legislation go to: NIPSCO (Northern Indiana Public Service Company), electric utility, natural gas utility, ISO 14001 certification, click Climate Change and then click on Sample Letter to Elected Officials.

 

[SavageEagle]

While I do like the article, I don't think NIPSCO is the largest power company in Indiana. In terms of electricity, Duke (Formerly Cinergy and PSI) Energy provides power to 2/3rds of the state...

And of course we all knew that the bill would kill our power companies and bring them to their knees. It very well could put Gibson Generating Station out of service as that one plant serves to power MOST of Southern Indiana and Illinois. Owned by Duke Energy but operates under Public Service Indiana.

It's gonna be hell when they take over farmers fields to build wind farms that only produce 20% of their total capacity...

 

[public servant]

NIPSCO must be worried it will cut into their profit margin. I don't think I've ever seen a utility company concerned about their customer's best interest before.

I wonder why there is such a vast difference between the cost increase guesstimates between NIPSCO and Duke?

While I don't agree with this bill...I think we need to find energy alternatives to reduce our carbon footprint.

I'm not sure if that makes me a conservationist or an environmentalist...

 

[SavageEagle]

NIPSCO must be worried it will cut into their profit margin. I don't think I've ever seen a utility company concerned about their customer's best interest before.

I wonder why there is such a vast difference between the cost increase guesstimates between NIPSCO and Duke?

While I don't agree with this bill...I think we need to find energy alternatives to reduce our carbon footprint.

I'm not sure if that makes me a conservationist or an environmentalist...

No you're right, we need better cleaner ways to make energy, but to punish those who do so now is not the way.

Also keep in mind Duke is a MUCH bigger company expanding from the midwest to the east coast while NIPSCO is concentrated in Northern Indiana only.

 

[public servant]

No you're right, we need better cleaner ways to make energy, but to punish those who do so now is not the way.

Agreed SE...but I still believe NIPSCO is only concerned about their profit margin...not their customers. Or perhaps that Duke will move into their territory...shutting out NIPSCO shareholders all together.

Environmentalists and conservationists have been preaching at these utilities to innovate new ways to produce energy for decades...at what point do they need to be forced to find viable alternatives? So far they have been satisfied with the status quo as long as the profit margin remained high.

 

[SavageEagle]

Agreed SE...but I still believe NIPSCO is only concerned about their profit margin...not their customers. Or perhaps that Duke will move into their territory...shutting out NIPSCO shareholders all together.

Environmentalists and conservationists have been preaching at these utilities to innovate new ways to produce energy for decades...at what point do they need to be forced to find viable alternatives? So far they have been satisfied with the status quo as long as the profit margin remained high.

I agree, but force them to find better alternitives without punishing the consumer. What they are trying to do now is going to break the backs of We The People and still not accomplish anything within the next 50 years. Well, 50 years is a stretch, but you get my point.

Oh, and I heard a rumor a couple years about about Duke buying up NIPSCO, but I think it fell through. It was a closed door thing, but having a man on the inside gets you all the juicy stuff! I think NIPSCO just said no and that was that. I don't know.

 

[Go Devil]

Follow the money.

Who stands to make the profit?

Are millions of home owners and businesses going to shut off their heat or their conditioned air?


Kind of like manditory health insurance, who will be making profit?

As a business owner I would enjoy guaranteed profit without the cost of advertisement; at that point, I could even let the quality of what I produce go to crap and still go on vacation every year....

But, I have more self respect than that.

 

[steveh_131]

While I don't agree with this bill...I think we need to find energy alternatives to reduce our carbon footprint.

No. No, we don't. Go spend $30,000 on solar panels for your house if you feel this way. Buy an electric car. Hug some trees and chant tribal nonsense. Do whatever you want, just leave the rest of us alone.

If people really gave a crap about our "carbon footprint", I'd like to see them start making some sacrifices first. Maybe then I'd more carefully consider their point of view.

 

[Lucas156]

Agreed SE...but I still believe NIPSCO is only concerned about their profit margin...not their customers.

If they weren't concerned about their profit margin they wouldn't be in business. Theyre not the government. Thats how capitalism works-business have to make money.

 

[Big John]

No. No, we don't. Go spend $30,000 on solar panels for your house if you feel this way. Buy an electric car. Hug some trees and chant tribal nonsense. Do whatever you want, just leave the rest of us alone.

If people really gave a crap about our "carbon footprint", I'd like to see them start making some sacrifices first. Maybe then I'd more carefully consider their point of view.

 

[public servant]

If they weren't concerned about their profit margin they wouldn't be in business. Theyre not the government. Thats how capitalism works-business have to make money.

It should also be called a monopoly when I can't live where I want and chose the lowest priced utility I want. I have no choice.

 

[esigler]

I have moved to Texas this summer, I get to choose my electric. But the lowest I could find 10 cents a KW, Nipsco was round 8. I have been in HVAC for twenty year and have been told this will happen, it all started will Al! We should have shut him down years ago, but nobody did. Global warming? My freon is heavier than air but its putting a hole up there?

 

[SavageEagle]

This isn't about capitalism or profit margins. It's about the Government stepping in and saying if you don't close down all the high carbon emitting power plants (Coal, NG) we're going to tax you to death and force you to raise rates by 200% on your customers until you switch to Nuclear or Wind/Solar/Geothermal.

That's what this is about. Not profit margins. Except for the government's "Profits".

It should also be called a monopoly when I can't live where I want and chose the lowest priced utility I want. I have no choice.

This is a good point. We're on Duke power here in our sub-subdivision, but just 4 blocks over they're on REMC. How does that work when we're all on the same power lines?

 

[Lucas156]

This isn't about capitalism or profit margins. It's about the Government stepping in and saying if you don't close down all the high carbon emitting power plants (Coal, NG) we're going to tax you to death and force you to raise rates by 200% on your customers until you switch to Nuclear or Wind/Solar/Geothermal.

That's what this is about. Not profit margins. Except for the government's "Profits".



This is a good point. We're on Duke power here in our sub-subdivision, but just 4 blocks over they're on REMC. How does that work when we're all on the same power lines?

I know what you are saying about monopoly but to say its not about capitalism or profit margins I dont agree with. They will have to increase rates on customers basically screw the customers to maintain their profit margin. All over a huge lie called climate change. Capitalism works that way. business costs increase-costs for customers increase.

 

[SavageEagle]

I know what you are saying about monopoly but to say its not about capitalism or profit margins I dont agree with. They will have to increase rates on customers basically screw the customers to maintain their profit margin. All over a huge lie called climate change. Capitalism works that way. business costs increase-costs for customers increase.

I'm sorry, but I have to disagree. Capitalism has NOTHING to do with government intervention. That's called socialism and it's ruining this Country.

Power companies will have to increase prices BECAUSE of government intervention. Please show me where in the definition of capitalism this falls...

 

[public servant]

This is a good point. We're on Duke power here in our sub-subdivision, but just 4 blocks over they're on REMC. How does that work when we're all on the same power lines?

The government decided what energy providers would supply what areas. If REMC or Duke provides the service for a better price...why shouldn't I be able to choose? Same with Comcast or Brighthouse cable.

 

[Lucas156]

I'm sorry, but I have to disagree. Capitalism has NOTHING to do with government intervention. That's called socialism and it's ruining this Country.

Power companies will have to increase prices BECAUSE of government intervention. Please show me where in the definition of capitalism this falls...

Im saying the price increase for the business will equal price increase for customers. The reason for the price increase is unnecessary government intervention. Is it right that government interferes? No it is not. Is it the companies fault that they have to increase prices to maintain their profit margin? No it is not. Its the governments fault that there is a price increase (new worthless taxes) in the first place.

 

[public servant]

If people really gave a crap about our "carbon footprint", I'd like to see them start making some sacrifices first. Maybe then I'd more carefully consider their point of view.

I'm not talking about tree hugging. But personally I'd like to see us stop destroying everything on the planet because we're a "me" society. I'd like for some hunting areas to be around for my great, great, great grandchildren...perhaps some wetlands...but that's just me. I just don't see the sense in destroying everything because we can...or because it's not worth the effort to you or it might inconvenience someone.

 

[truegrit]

It's not just Nipsco that needs to worry what about the furnaces at Mittal Steel? that guy could say the hell with it and close this plant down and go back to India leaving all the people that work their out of jobs not to mention the suppliers.

 

[rambone]

It's not just Nipsco that needs to worry what about the furnaces at Mittal Steel? that guy could say the hell with it and close this plant down and go back to India leaving all the people that work their out of jobs not to mention the suppliers.

NIPSCO is simply warning its customers. I don't think this tax will change much for NIPSCO, since they will simply have to raise their rates if the Cap & Trade legislation goes through. The customers are the ones who should be worried. A tax like this doesn't put a utility company out of business, it causes homeowners to live by candlelight with no heat.

Mittal Steel and the other Indiana steel mills may literally be taxed out of existence. Their products will cost so much to produce that their foreign competitors will put them out of business. Nobody will be able to afford to "buy American" anymore. There will be no market for a $3000 washing machine. There will be no way to sell a $50,000 Chevy. Which means all the industries who buy steel, will buy foreign steel to avoid the ridiculous tax the American Government put on us.

I think our local plants will simply close. American steel will be a thing of the past. Other countries will gladly pick up the slack, and put the same amount of CO2 into the environment anyways. America will join other 3rd world countries by having no jobs, little electricity, total Government control.

The earth will be no better "saved" after this legislation. But it will come at the expense of the American economy and standard of living.