The Market Ticker
Commentary on The Capital Markets- Category [Energy]

Obama is trying to make your light switch inoperative -- by killing the electricity at its source!

The Wednesday before Thanksgiving, the Environmental Protection Agency released a 626-page proposal (plus a 575-page appendix) to regulate ozone. Like so many other such rules, this one twists decades-old air pollution laws to restructure the U.S. energy industry and gradually ban fossil-fuel-fired power. Coal is the first target but natural gas is next.

Yep.

The EPA's proposals would leave virtually all of the nation out of compliance with their re-written "rules"; a bastardized "interpretation" of an old law that was never contemplated when the law was written and passed.

Nonetheless, should the EPA succeed and the court challenges fail it would ban essentially all coal and natural-gas fired powerplants.  Note that the latter make up nearly all of what are known as "peaking" plants and keep the lights on during periods of high demand.

The reason is that unlike baseload plants such as nuclear power a gas-fired turbine can be spun up quickly and respond to surge demand loads very quickly -- baseload plants cannot.

As a result these plants are a key component in keeping the power flowing during times of extraordinary demand -- such as during the mid-day heat of summer when everyone wants their air conditioner going.

Make sure you thank Obama for this -- after all, he did state that he wants electricity costs to rise dramatically, and yet he was not only elected with this on the table he was re-elected after making clear that this was his intention.

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