EEI President Tom Kuhn Testifies Before House Energy Subcommittee on Climate Legislation

June 19, 2008

Testifying before the House Energy and Commerce Committee’s Energy and Air Quality panel, EEI President Tom Kuhn said the U.S. electric power sector is committed to working with Congress towards enactment of economy-wide climate legislation that will produce substantial emissions cuts by 2050.  But emissions targets and timetables must be premised on utilities’ ability to bring a full suite of technology options to bear, or consumers will face dramatically higher energy bills than would otherwise be the case.

Kuhn said that climate policy objectives must be addressed within the context of soaring electricity demand, which will require major new infrastructure investment, even with significant efficiency improvements already underway.

"The magnitude of the challenge in building infrastructure and providing electricity to a growing population and economy underscores the huge task that the electric utility industry faces in slowing, stopping and reversing the growth of greenhouse gas emissions," Kuhn said.

To help protect consumers, Kuhn said that federal climate legislation should incorporate an effective cost-containment mechanism, such as an economic safeguard or "safety valve," which puts a ceiling on the price of a CO₂ allowance, or a "price collar," which places both a floor and ceiling on allowance prices.  Such price certainty would help protect consumers from potential price spikes and facilitate investment in advanced technologies.

• Access Tom Kuhn's testimony.
• Read the EEI news release.
• Access additional EEI resources on climate change.

© 2008 Edison Electric Institute