The title of the hearing today is “Consumer Protection in Climate Legislation,” which recognizes the undisputable fact that climate legislation will increase the cost of energy and consumers will need to be protected.
These are very difficult economic times for our nation. Michigan in particular has been hit hard. In 2008, approximately 21% of all utility accounts nationwide were overdue - with folks carrying past due balances an average of $160 on electric bills and $360 for natural gas. Total account debt in Mr. Markey’s Massachusetts was about $456 million – with 28% of all electricity accounts and 48% of gas accounts being past due. In Michigan, the account debt totaled $367 million – in parts of Michigan 1 in 3 consumers are behind on their bills. And we all know which direction these numbers move when prices go up.
Congress must make its number one priority to get the economy back on track and protect jobs. That is my top priority. Keeping energy affordable is the key to this equation.
According to an MIT model of a 100% auction cap-and-trade, the American people will be taxed $366 billion in 2015 – four times as much as the President’s estimate of $80.3 billion for that year. Job losses under such a plan could be greater than 6 million. Increased energy costs would near $1 trillion in 2030. Increases in electricity costs could be greater than 100%. GDP could fall more than 7% by 2050. A family of four could expect to pay as much as $4,560 in additional costs in 2015. In written testimony, OMB Director Orszag stated that the average household cost would be $1,300 for a 15% cut in emissions – this administration is seeking an 80% cut.
Our former committee colleague, Sherrod Brown, now a Senator from Ohio, who opposed cap-and-trade last June, said that Obama’s plan would lead to an increase in energy costs and would drive American firms abroad - “It really does say to manufacturing, ‘Go to China, where they have weaker environmental standards. And that’s a very bad message in bad economic times — in any economic times.”
There are not too many absolutes in this business of politics. But one thing is irrefutable, our power demands as a nation will continue to grow.
Unless we pursue coherent, pragmatic policies, we could send our nation’s economy into a freefall, and there will be tremendous difficulty to keep the lights on in homes across America.
I yield back.
