Electricity
pollution & restructuring
States with natural resources including coal, natural
gas, and rivers for hydroelectric dams generate electricity. Nuclear generators
also play a role in baseload generation. Electric utility companies invest in
generation and transmission facilities. Franchise areas of the electric utilities
cross state borders with competition at the wholesale level.
Generation and transmission are multi-state systems
designed for regions. Utilities have monopoly power but prices are regulated by
the Public Service Commissions. The industry is restructuring with more
regulation passing from states to regional and national levels.
Retail competition means electric customers would be free
to choose their electric company across state borders. Customers in high priced
states would buy from cheaper states.
There is local pollution due to electricity generation
with hydrocarbon fuels. Gas fired generators are relatively clean. Coal is the
main fuel and more polluting. The Environmental Protection Agency EPA requires
the best available technology BAT for controlling emissions but living near a
coal burning generator is unhealthy.
Exporting states suffer the pollution. The economic
question is whether the income from selling electricity is worth the costs of
pollution. The political question will be who makes any changes as the electric
industry restructures.