NEWS

Most would accept higher electric bills to battle warming—survey

05/20/2008

Ben Geman, Greenwire senior reporter

A majority of Americans say they are willing to pay slightly higher electricity bills to help curb greenhouse gas emissions from power plants, according to a survey released today by the consulting firm Deloitte.

More than 36 percent of respondents said they would accept a 5 percent increase, and 17 percent of respondents would accept a 10 percent annual boost in their power bills. Acceptance plummets as costs rise—3.5 percent of those surveyed would accept a 15 increase in their bills, and almost 5 percent would stomach even greater increases.

Thirty-four percent say they would not accept any rise in their electric bills.

Achieving the sharp decreases in greenhouse gas emissions that environmentalists and many lawmakers are seeking will increase energy costs, according to a range of studies.

An Energy Information Administration analysis of the leading Senate greenhouse emissions bill scheduled for floor debate next month forecasts an average annual increase in household energy bills of between $30 and $325 in 2020, and between $76 and $723 by 2030 (E&E Daily, April 30).

Almost 48 percent of the Deloitte poll respondents said they are "very concerned" about global warming as a result of greenhouse gas emissions, 26 percent said they are somewhat concerned and 22 percent said they are unconcerned.

The survey of at least 1,000 interviews also found almost 53 percent would support building new nuclear plants to meet future power needs, 36 percent are opposed and almost 11 percent did not know.

Fifty-five percent of respondents said they would support buying power from a "clean coal" power plant, even if this meant a 5 percent hike in electricity costs.

Utility commissioners surveyed

The firm also released a survey of state utility commissioners—87 percent of whom said they anticipate the costs of producing power in their state to rise next year.

Thirty-five percent of the commissioners said rising fuel prices would contribute the most to increasing electricity costs, 23 percent said environmental compliance, 21 percent named capital costs and 11 percent cited inflation.

Another question to the regulators was about the biggest barriers to increasing renewable power. The top answer was transmission constraints, at 26 percent, while high prices to consumers came next at 23 percent. The need for better technology followed at 18 percent and lack of adequate incentives was cited by 17 percent.

Fifty-nine percent of the commissioners said they are very concerned about global warming as a result of greenhouse gas emissions, 24 percent said they are somewhat concerned, and 17 percent said they are not concerned.

The survey asked the regulators to rank their preferences for technologies that can reduce greenhouse gas emissions. Nuclear energy ranked first, energy efficiency second, renewable energy third and clean coal fourth.