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Climate Change

Carbon Conundrum

The Carbon Conundrum (PDF of a Powerpoint slide presentation by Basin Electric ) Cap and Trade (PPT) What Basin Electric is doing (PDF) Find a Balanced Solution Find a Balanced Solution Talking Points  Our Energy, Our Future ACCCE Partners for Affordable Energy

Global climate change. Some members of the U.S. Congress stand ready to act on legislation.

But can every American afford the solution?

Basin Electric is not opposed to reasonable climate legislation: we stand ready to help solve the issue of climate change.

We are opposed to any legislation that sets unrealistic goals and timetables that may dramatically increase costs to consumers. With reasonable timetables and investments in technology,our energy industries can solve the problem without unreasonable costs to Americans.

Basin Electric is diversifying our power supply to include wind, gas and waste heat. We are also building America's first cooperative-owned wind farm, as well as engaging in several conservation and efficiency programs at the G&T level and with our member cooperatives. These efforts help limit the amount of carbon dioxide released into the air.

Electric demand exceeds what renewables, conservation can supply

Experts say that our nation’s growing electricity needs will soon go well beyond what renewable energy, conservation and efficiency can provide.

• Coal currently provides 50 percent of America’s electrical energy and 80 percent of power to Minnesota, Montana, North Dakota and South Dakota.
• The technical potential exists for the U.S. electricity sector to significantly reduce its CO2 emissions over the next several decades, but no one technology will be a silver bullet – a portfolio of technologies will be needed.
• Much of the needed technology isn’t available yet – substantial research and development and demonstration is required. A low-cost, low-carbon portfolio of electricity technologies can significantly reduce the costs of climate policy.

New technology is still in development

Basin Electric is the parent company to the largest carbon capture project in the world, and we are moving forward with one of the most aggressive new energy technology programs anywhere in the world (video).

Basin Electric and its subsidiaries believe that through the development of new technology, we can keep our energy supply clean and reliable, we can have a strong economy and we can solve the issue of climate change.

We have an abundant domestic fuel source

Basin Electric believes that some form of carbon dioxide (CO2) management or constraints will be developed by the U.S. Congress. However, such legislation must maintain a viable path for future coal use to protect consumers and to maintain domestic energy security. Coal continues to produce 50 percent of electricity used in the United States. Coal is domestic, abundant, and relatively inexpensive; we need to develop the technologies that allow us to use coal more efficiently with the ability to capture carbon dioxide emissions.

Leader in carbon capture and delivery technologies

Basin Electric is working to develop carbon capture and sequestration (CCS) technologies for coal. We have been a leader in carbon dioxide sequestration, participating in the largest CCS project in the world. We are currently planning to test pioneering carbon dioxide capture technologies at the Antelope Valley Station, near Beulah, ND. These efforts will take time and a huge financial commitment.

Carbon dioxide emissions reduction model

We support the Electric Power Research Institute (EPRI) model. It proposes reducing carbon dioxide emissions on a longer timeframe, but results in dramatically less painful increases in energy costs. It would require Congress to focus on technology to reduce carbon dioxide emissions and make the timing of reductions more in line with technology developments.

The Electric Power Research Model (EPRI)

View the PowerPoint show, "Electric Technologies in a Carbon-Constrained World" presented by Bryan Hannegan, Vice president, Environment, EPRI, at Rural Electric Statewide Managers Association Meeting in January 2008.

EPRI’s plan would allow emissions to increase slightly in the near term, level out from 2010 to 2020 and then begin making reductions. On the electricity supply side, this would allow for the demonstration and commercialization of CCS, expansion of new nuclear plants, improvements in new coal and gas generation and increases in the efficiency of renewable energy options to lower costs. On the demand-side, it includes the adoption of plug-in hybrid electric vehicles and the acceleration of end-use efficiencies.

Saving the U.S. $1 trillion

If EPRI’s model were adopted - focusing on research and development and getting the timing correct - the U.S. economy would save $1 trillion. If climate change legislation is done correctly, the impact to the consumer can be substantially reduced. If not, the result will be a disrupted economy and a painful transition that results in reduced household spending power.

Our position

As we seek that solution to climate change, it is clear that any climate change legislation must be responsible and must avoid long-term economic consequences to consumers and the economy. It must have achievable targets and tangible benefits.

Finally, and most importantly, the implementation of legislation and the commercialization of technology must be timed correctly. The wrong choices on the climate change issue would have a devastating effect our economy and our future.

What are the right choices?

Basin Electric supports the Electric Power Research Institute (EPRI) model. The EPRI model proposed the implementation of a broad range of new technologies over the next two decades. It proposes reducing carbon dioxide emissions dramatically, but does so in a way that softens the impact to already soaring energy costs. It would require Congress to focus on technology development to reduce carbon dioxide emissions and make the timing of reductions more in line with technology developments.

CEO and General Manager Ron Harper waits to speak at a recent climate change and energy panel discussion.

A sensible plan to protect the environment and our economy must include:

Incentives - Incentives for carbon dioxide (CO2) use in enhanced oil recovery and enhanced coalbed methane recovery offer economic compensation for the development of technology to demonstrate carbon capture.

Timing - Any defined emission reduction targets must be achievable and timed with the advancement and commercialization of technologies.

Consumer protection mechanism - Consumer price protections must be put in place to mitigate harmful economic conditions on the end consumers of electricity.

Regulatory certainty - Utilities need to know the rules of the road if they want to keep the lights on. Further, the rules cannot change once a non-reversible decision has been made and should provide a uniform playing field for the entire country to avoid regional economic impacts.

All sectors must be included - Every entity that produces greenhouse gas emissions must be included in the legislation, not just electric generation.

World-wide effort - It's not just the United States producing CO2. A world-wide effort is needed to make a measurable CO2 emission reduction.

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