RSS Feed MenuA friend with a close understanding of the utility industry adds a postscript to this post of mine about the giveaway to coal that may be embedded in the Democrats’ final cap-and-trade scheme. Not only would the coal industry get free permits for emissions, but
[T]he permits would be capitalized as an asset on the coal utilities balance sheet and therefore would be part of the cost they can recover from consumers under which the Public Utility Commissions determine cost plus rate of return (even though they get the allowances for free).
Churl // Apr 28, 2009 at 8:07 am
You were thinking, perhaps, that the cap and trade scheme – pushed by the likes of Henry [blanking] Waxman – was going to be an economically rational structure that would benefit the environment and nothing else? Here’s a free clue: politicians make sure that every law contains opportunities to do favors for their friends while squeezing revenue out of the rest of us. This is the sort of thing to expect from the global warming legislative and regulatory stampede.
joemarier // Apr 28, 2009 at 9:01 am
So, everyone’s bills will go up, but the money will stay with the utilities? How… Axelrodian!