The Obama administration — via the Department of Energy’s Energy Information Administration (EIA) — issued an economic analysis of Waxman-Markey concluding that the bill will cause electricity prices to increase only slightly through 2020.
While we’re still reviewing the report, here are a couple things you ought to know about it:
- The EIA report appears to show merely that if no true CO2 control is put in place, electricity prices won’t increase. But as soon as true CO2 control is implemented electricity prices could more than double.
- The report is chock full of demonstrably faulty assumptions and misleading economics. Assumptions include that nuclear power and carbon capture and storage are easily and inexpensively implemented on a large scale. The misleading economics portion includes the notion that Congress can impose more than $6 trillion of annual costs on energy production and use, and energy users won’t notice.
The real loser here is the EIA — America’s source of energy data — which is squandering its reputation in order to advance President Obama’s agenda.