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Tuesgay, Feb 9th, 2010

Proprietary Method Cleans-Up Waste Water From Oil/Gas Drilling Operations

Impact of Lieberman/Warner on Arkansas

Study shows economic costs of Lieberman/Warner Bill

The American Council for Capital Formation (ACCF), a Washington-based think tank, recently released studies of the economic costs of the Lieberman/Warner Climate Security Act (S. 2191) at the state and household level in 21 states and the United States as a whole. The studies indicate that the proposed legislation would raise energy prices, resulting in job loss, a fall in household income, slow economic growth and production losses in most industries.

The Electric Cooperatives of Arkansas are concerned about the potential impact of this proposed legislation. As the bill moves toward open debate in the United States Senate, the cooperatives believe that you, our members, should be aware of the potential impact of the proposal. The Lieberman/Warner Bill would enforce a nationwide "cap and trade" program for the emissions of greenhouse gases (GHG). This is another way of saying, “limiting current uses of coal, oil and natural gas by raising the cost of using them.” In theory, a cap would establish a price on CO2-emitting sources of energy, and then increase that price as high as necessary to sufficiently reduce consumers' willingness to use the sources of energy. A cap works just like a tax, except that no one knows what the tax rate will be.

How would the proposed legislation impact Arkansas, according to the ACCF study" Costs per household would rise over time as emission caps become more difficult to meet. Relative to its current real spending power (year 2010), an average household in Arkansas would lose $3,824 per year in 2020, rising to $5,231 by 2050. Arkansas consumers will pay 47 percent more for natural gas and 28 percent more for retail gasoline by 2020. By the year 2050, those prices will be twice those of the baseline (in other words, the economic forecast without the cap and trade, or carbon tax legislation).

The wholesale price of electricity rises by 118 percent relative to the baseline in 2020. Households and businesses will pay more at the retail level. Why do electricity prices rise? Electricity prices rise between 2010 and 2020 for two primary reasons: 1) the Lieberman/Warner Bill adds a cost for emitting CO2; and 2) there is a related shift away from coal-fired generation (85 percent decrease by 2020) to higher cost natural gas-fired generation (33 percent increase by 2020). And these prices are just for the new tax on carbon emissions – they do not include the significant additional costs for the new generation that we need to buy or build to meet load growth and that will also be included on customer’s bills.

Lieberman/Warner is the most expensive CO2 bill pending in Congress with an estimated $300 billion per year cost to the economy, or a total of $5 to $8 trillion price tag from 2012 to 2050. That amounts to a loss of 1 - 2 percent Gross Domestic Product per year for the United States. The $300 billion annual price tag is equal to the amount spent on the United States’ Defense budget, or equal to 50 percent of annual Social Security spending. While lawmakers and commissions are busy working to cap and impose a price on carbon emissions, the fact is that the technology does not yet exist to do that. And, as a result, the electric utility industry cannot do what the legislation would require.

Congress should instead focus on supporting the existing research and development roadmap that, properly funded, will develop clean energy alternatives using domestic energy sources while protecting our economy, security and the environment. Please contact your Arkansas Senators and Congressmen and ask them to argue and vote against this potentially very costly legislation.

Gary Voigt

President/CEO

Electric Cooperatives of Arkansas

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Price of carbon:

The cap and trade or tax would amount to about $74 per metric ton of CO2 by 2020 (roughly equivalent to 7 cent per kilowatt-hour rate increase, or 100 percent rate increase over current levels) and $88 per metric ton by 2030. The $74 per metric ton would cost Arkansas electric cooperative members about $700 million annually. Job Losses: Loss of 106,000 Arkansas jobs in 2020 and 189,000 jobs by 2050 (relative to baseline forecast). Decrease in Household Income: Average households in Arkansas would lose $3,824 per year in 2020, rising to $5,231 by 2050.

Energy price increases:

By 2020, Arkansans would pay 47 percent more for natural gas and 28 percent more for retail gasoline. By 2050, those prices would be twice those of the baseline. Wholesale electricity price increases: Wholesale price of electricity would rise by 118 percent relative to the baseline by 2020.

Slower economic growth:

Loss in state GDP would cause Arkansas' economy to grow more slowly, falling to 10.2 percent below the baseline forecast by 2020. Industrial / agricultural losses: Output of goods and services would decline in almost all of Arkansas' industries. Agriculture would see large increases in fuel and fertilizer costs; production would fall 7.7 percent by 2020, relative to the baseline. Production from energyintensive sectors would decrease by 11.8 percent. The electricity sector would experience a 45 percent decline in output by 2020.

Impact of Lieberman/Warner on Arkansas

Article and free pdf version at the Rural Arkansas - April Edition 2008 - page 11

Tuesday, Dec 4, 2007

McDaniel Files Suit Against Ferrellgas

Deceptive Trade Practices Alleged

LITTLE ROCK - Yesterday, the Attorney General’s office, on behalf of the State of Arkansas and 45,000 Arkansas Ferrellgas customers, filed suit against Ferrellgas for violations of the Arkansas Deceptive Trade Practices Act ("DTPA").

"I have gone to great lengths to resolve these issues with Ferrellgas, but it has been unwilling to compromise on what I believe are extremely reasonable terms," McDaniel said. "I had hoped to have this resolved before the cold winter months. However, filing suit is the only option the state has left in this matter."

The Attorney General contends Ferrellgas violated the DTPA by altering existing agreements between it and its Arkansas customers with the initiation of a "Master Agreement for Propane Sales and Equipment Rentals" in 2004. The 23-page "Master Agreement" changes basic and vital provisions of a customer’s original 2-page agreement with the Company. Through the "Master Agreement", Ferrellgas attempts to collect a myriad of new fees even though customers never consented or agreed to a modification of their original agreements with Ferrellgas. Additionally, Ferrelgas forced customers to choose between paying these unauthorized fees or going without heat.

The Attorney General’s Office began receiving complaints regarding the business practices of Ferrellgas in the fall of 2005.

credits: Arkansas Attorney General Dustin McDaniel