Federal regulations on greenhouse gas emissions could boost the monthly electricity bill for the average Texas consumer by $27, maybe even twice that amount, according to a study by the state's grid operator.

The Electric Reliability Council of Texas – a nonprofit corporation whose members are largely electricity companies – evaluated how much electricity prices in Texas would rise if Congress imposes costly regulations on carbon dioxide emissions. The study considers various prices for carbon and other factors such as the impact on natural gas prices and whether more wind power could reduce costs.

Congress is considering a bill that would cap the amount of carbon dioxide that power plants and other facilities may emit. The government would issue tradable allowances, so that companies could buy allowances rather than cut their emissions.

Texas Republicans have complained that climate change legislation would kill the state's economy. Democrats say carbon dioxide regulations would create opportunities for the Texas energy industry and wouldn't be as costly as naysayers fear.

"I'm more concerned about climate change legislation than I am about climate change," Public Utility Commission Chairman Barry Smitherman has said. The ERCOT study was his idea.

Jim Marston, head of the Texas office of the Environmental Defense Fund, said he's astounded that the study failed to analyze how much energy efficiency could offset the cost of regulations on consumers.

"I think either they are incompetent or they have a political agenda," he said. [Or both...  --ed.]

Dallas Morning News