“Fossil-flation” Affects Energy Prices

JENNIFER CRAWFORD. THANK YOU FOR JOINING US. THE UNITED STATES IS GOING THROUGH A SHIFT IN ENERGY CONSUMPTION AS AN INDUSTRY ONCE DOMINATED BY FOSSIL FUELS IS HEADING TOWARD A GREENER APPROACH, ACCORDING TO THE U.S. ENERGY INFORMATION ADMINISTRATION, 219 COAL-FIRED PLANTS OPERATE ACROSS THE COUNTRY. NEARLY HALF AS MANY AS DURING KOHL'S PEAK GENERATION YEAR OF 2011. YET AS SOLAR WIND AND NUCLEAR POWER CONTINUE TO GAIN GROUND COAL, NATURAL GAS AND OTHER FOSSIL FUEL ENERGY SOURCES ARE HAVING ANOTHER POWERFUL IMPACT ON THE ECONOMY BETWEEN ENVIRONMENTAL CONCERNS, RISING FUEL COSTS AND AGING FACILITIES. SOURCES LIKE COAL ARE LEADING TO HIGHER COSTS ON MORE THAN YOUR ENERGY BILL. >> I'M NOW JOINED BY BRADLEY MARSHALL, SENIOR ATTORNEY FOR EARTHJUSTICE. >> IT IS A NONPROFIT PUBLIC INTEREST, ENVIRONMENTAL LAW ORGANIZATION. MISTER MARSHALL, THANKS FOR JOINING US TODAY FROM TALLAHASSEE. THANKS FOR HAVING ME. NOW. ENVIRONMENTAL GROUPS HAVE SAID THE COST OF FOSSIL FUELS IS DRIVING A NEW KIND OF INFLATION. THEY'RE LABELING FOSSIL. FELICIA, AND CAN YOU WALK US THROUGH WHAT THIS TERM MEANS? >> WELL, THE IDEA IS THAT FUEL PRICES CONTINUE TO RISE, WHICH CONTRIBUTES, FOR EXAMPLE, TOO, INCREASING ELECTRIC BELTS. WE SEEM BIG PRI SPIKES AND ELECTRIC BILLS IN FLORIDA OVER THE LAST FEW YEARS FROM RISING NATURAL GAS PRICES. THIS YEAR, THAT MIGHT NOT BE THE MAIN DRIVER. THERE'S BEEN UTILITY RATE INCREASES BEING DRIVEN BY UTILITIES, WANTING MORE PROFITS AND OTHER THINGS BUT FEW REMAINS A BIG COMPONENT OF ELECTRIC BILLS AND THE MORE HAVE A LEAD. OUR GENERATION MIX IS DEPENDENT ON FOSSIL FUELS THAT THE MORE VOLATILE THOSE ELECTRIC BILLS CAN CAN SWING WHEN WHEN FUEL PRICES, FOSSIL FUEL PRICES GO UP. >> AND HOW WOULD FALL SO FELICIA IMPACT EVERYDAY AMERICANS ALL ACROSS THE COUNTRY. IT'S NOT JUST AT THE FUEL PUMP. >> NOW, I THOUGHT IS THAT THE FUEL PUMP? IT'S PART OF THE ELECTRIC DOW. AND THEN OF COURSE, THERE'S STILL OVER EFFECT THROUGHOUT THE ECONOMY THAT YOU START TO GO BEYOND MY EXPERTISE. BUT ALMOST EVERYTHING THAT PEOPLE BUY DEPENDS ON TRANSPORT ALONG SOME PART OF THAT, THAT CHAIN OF OF THE ECONOMY AND SO MUCH OF THAT, IS IT DEPENDENT ON FOSSIL FUEL PRICES? >> NOW, WE HAD RECENTLY REPORTED THAT SOLAR HAS SURPASSED COLIN GENERATION OF ELECTRICITY ACROSS THE COUNTRY. BUT MANY OF US STILL SEE HIGHER ELECTRIC BILLS. AND WE EXPECT THOSE BILLS TO KEEP INCREASING. WHY DOES THIS HAPPEN? >> WELL, IN FLORIDA, SPECIFICALLY WE HAVE SOME THE HIGHEST ELECTRIC BILLS IN THE NATION. AND THAT'S BECAUSE OF THE INVESTOR OWNED UTILITIES THAT WE HAVE IN FLORIDA, FLORIDA, POWER AND LIGHT. TAMPA ELECTRIC COMPANY THAT CONTINUE TO EARN PROFITS THAT ARE WELL ABOVE THE NATIONAL AVERAGE. THEY CONTINUE TO SPEND BILLIONS OF DOLLARS INCREASING RELIABILITY WELL PAST WHAT WOULD BE CONSIDERED NATIONAL STANDARDS CONTINUE SPENDING BILLIONS OF DOLLARS ON GENERATION THAT WE DON'T THINK THAT THEY NEED IN ORDER TO ADEQUATELY SERVE THEIR CUSTOMERS. AND SO ALL OF THAT ADDS UP AND THE FORM OF THE ELECTRIC BILLS THAT THAT PEOPLE PAY IN FLORIDA. IT'S QUITE TELLING THAT YOU DON'T SEE THE SAME INCREASE FOR THOSE CUSTOMERS IN FLORIDA FOR BIDEN. THIS MUNICIPAL ELECTRIC UTILITIES, WHICH ARE CONTROLLED BY BY SOME OF THE CITY'S AND THEN ULTIMATELY ARE ACCOUNTABLE TO THE VOTERS. >> WHAT ROLE DO GOVERNMENTAL POLICIES PLAY IN THE FLUCTUATION OF A COST OF FOSSIL FUELS? >> WELL, FOR >> GOVERNMENT POLICY HAS BEEN TRYING TO PUSH TO INCREASE THE EXPORT CAPACITY OF OF LIQUEFIED NATURAL GAS. ALMOST ALL OF OUR THE MAJORITY OF POWER IN FLORIDA DEPEND ON NATURAL GASOLINE. IMPORTANT ALL FROM OUT OF STATE. AND SO THE MORE WE TY, THE U.S. NATURAL GAS MARKET INTO THE WORLD MARKET. FOR NATURAL GAS. THE MORE THAT THE PRICES OF NATURAL GAS WILL GO UP AS AS THE THE WORLD PRICE FOR NATURAL GAS HAS GONE UP. AND SO. THE GOVERNMENT POLICY OF OF TRYING TO INCREASE OUR EXPORT CAPACITY AND TIED THE PRICE WE PAY HERE TO THE SAME PRICE THAT EVERYONE ELSE IS PAYING THROUGHOUT THE WORLD, EVEN THOUGH WE ARE, WE GENERATE MORE NATURAL GAS AND WE NEED IN THE U.S. THE MORE THAT THAT PRICE IS GOING TO GO UP AND INCREASE THE AMOUNT THAT PEOPLE ARE PAYING ON THEIR ELECTRIC BILL. >> AND YOU HAVE ANY ADVICE. >> ON WHAT EVERYDAY WORKING PEOPLE CAN DO TO TRY TO OFFSET THIS. >> FOSSIL FLAY SHUN IN THEIR DAILY BUDGET. WHAT IS IN THEIR CONTROL AT THE END OF THE DAY. >> THEY CONTROL AT THE END OF THE DAY IS HOW MUCH ELECTRICITY THEY USE. THAT THAT STUFF IN FLORIDA WHERE WE NEED LIKE TRUSTEE TO KEEP THE AIR CONDITIONING ON AND AND TO TO KEEP IT COOL. THERE ARE VERY, VERY LONG SUMMER. AND SO THERE'S ONLY SO MUCH YOU CAN CONTROL. BUT THERE THINGS YOU CAN DO AND SWAPPING OUT LIKE BOB'S THE MARKET FOR HALEIGH TO 5 PUBS. MAKE SURE YOU HAVE GOOD INSULATION ON YOUR HOME THINGS YOU CAN DO TO MAKE SURE YOU'RE USING ENERGY MORE EFFICIENTLY. SO YOU'RE NOT. PURCHASING AS MUCH FROM THE UTILITY THAT ULTIMATELY WILL. THAT WILL MAKE, BUT CONSUMER LESS DEPENDENCE ON ON THE PRICE OF THE WEST, WHICH IS THE YEARS, THE LESS DEPENDENT YOU'LL BE ON ON THE THE PRICE OF FOSSIL FUEL THAT THE UTILITY IS USING THE BURNING THE POWER PLANTS. >> ALRIGHT, THANK YOU SO MUCH, MR. MARSHALL. THANK YOU FOR