August 31, 2009

Coal Subsidies

The coal industry is subsidized by our government.

If that is surprising to anyone, than clearly the coal industry has done a number on public perceptions. For example: Duke Energy, a major utility servicing several eastern U.S. states, has a power mix that is predominantly coal. It is the third largest carbon emitter in the U.S. The company and its maverick CEO Jim Rogers are rankling feathers in the coal industry by talking about climate change. Other coal-heavy utilities such as Southern Power and AEP, in contrast, are taking firm stances against carbon regulation. In its recent sustainability report, Duke cites gaining $460 million in subsidies for a new coal plant in Indiana from state and federal government agencies. To modernize their Cliffside coal power plant, they are receiving $125 million in federal tax credits.

Why, dear God, why, are we subsidizing coal? Sure it creates jobs. So would subsidizing the roller skating industry.

Post a Comment