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CARBON PRICING….Over at Gristmill, Sean Casten reports on the latest energy boondoggle in his home state:

Tenaska, an independent power company, has been seeking to build a coal plant in Illinois. The problem being of course, that new, coal-fired power plants are really, really, really, really lousy investments….So how did the Illinois legislature respond? “Clean Coal Portfolio Standards.” Seriously.

Tenaska gets a long-term power contract on what would otherwise be a massive economic boondoggle. Illinois gets to increase power rates and rates of fossil extraction….And the whole thing is dressed up in an environmental cloak. Methinks the impeachment proceedings shouldn’t limit themselves to the executive branch.

Now, I’m one of those odd people who thinks that looking at the plain arithmetic of something like this actually makes it easier to comprehend. Luckily, Sean provides it for the project in question (the Taylorville Energy Center), which is getting approval for a rate increase in return for plans to sequester about half of its CO2 emissions. It’s a 525 MW facility that will cost $3.5 billion, so here’s how the costs break down:

  • $6,666 per kW

  • Delivered power costs on the order of 20 cents/kWh

  • Total CO2 emissions of 800-1,000 lbs/MWh

So how does this work out compared to the U.S. average? Here’s the answer:

  • 300-500 lb/MWh reduction in CO2 emissions

  • Offset by a $0.11/kWh rate increase

  • Simple division shows that Illinois ratepayers will subsidize this plant to the tune of $400-700 per ton of CO2 reduction

This is the kind of thing to think about when people talk about carbon taxes or cap-and-trade programs. One of the problems with pricing carbon is whether we have the political will to price it high enough to really make a difference. For example, the European ETS program, a cap-and-trade system, currently prices carbon emissions at a meager $16 per ton of CO2. And that’s after four years of operation.

But compare that to what the Illinois legislature just did: they put an effective price on carbon of more than $400 per ton of CO2. If they’re willing to do that — if legislatures are willing to pay rates that high — then that’s the market price of carbon. The only question is whether we’re willing to charge that price openly, with the carbon charge going to the public, instead of being hidden inside a complex giveaway to a favored corporation. Count me on the side of the public on this one.

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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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