Energy Rates May Increase as Utilities Reduce Carbon Emissions
According to a study done by The Overland Park, an engineering and energy consulting firm based in Kansas, utilities produced 42 percent of their electricity from burning coal last year. Every time fossil fuels (including coal) are burnt, carbon dioxide is released into the atmosphere, resulting in an overall increase in the Earth’s temperature.
Summer As companies take measures to reduce their carbon emissions, our nation may eventually see a spike in energy rates. As stated by an article from Bloomberg, complying with regulatory and environmental mandates to reduce emissions will require utilities to significantly raise customer electricity rates.
A similar occurrence has already happened in Taiwan. Last month, electric rates were drastically increased by an average of 35 percent for large commercial energy and 10-25 percent for residential energy rates.
There are government rfp pilot programs being created to try and put an end to this issue of significant carbon production. A carbon tax will require companies to pay a certain fee depending on their emissions. Also, a cap-and-trade legislation has been under governmental review. For this type of program, the government sets a “cap,” or a maximum amount of emissions allowed per company. If a company is not able to cover their emissions with their allowance, they will be forced to either reduce energy usage or buy allowances from other companies. This particular method is intended to promote stricter emission standards without having to tax companies directly.
As inflation continues in our country, an increase in utility energy rates is the last thing we need. Our sister company, BidURenergy, is the premier energy supply consulting firm in North America with the objective to bring the absolute lowest electricity and natural gas rates to its industrial, commercial, and retail clients. Through their PowerPit auction platform, utilities bid the lowest energy rates available in the market.
Energy Curtailment Specialists, Inc.
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