Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.


CARBON PRICING….Over at Gristmill, Sean Casten reports on the latest energy boondoggle in his home state:

Tenaska, an independent power company, has been seeking to build a coal plant in Illinois. The problem being of course, that new, coal-fired power plants are really, really, really, really lousy investments….So how did the Illinois legislature respond? “Clean Coal Portfolio Standards.” Seriously.

Tenaska gets a long-term power contract on what would otherwise be a massive economic boondoggle. Illinois gets to increase power rates and rates of fossil extraction….And the whole thing is dressed up in an environmental cloak. Methinks the impeachment proceedings shouldn’t limit themselves to the executive branch.

Now, I’m one of those odd people who thinks that looking at the plain arithmetic of something like this actually makes it easier to comprehend. Luckily, Sean provides it for the project in question (the Taylorville Energy Center), which is getting approval for a rate increase in return for plans to sequester about half of its CO2 emissions. It’s a 525 MW facility that will cost $3.5 billion, so here’s how the costs break down:

  • $6,666 per kW

  • Delivered power costs on the order of 20 cents/kWh

  • Total CO2 emissions of 800-1,000 lbs/MWh

So how does this work out compared to the U.S. average? Here’s the answer:

  • 300-500 lb/MWh reduction in CO2 emissions

  • Offset by a $0.11/kWh rate increase

  • Simple division shows that Illinois ratepayers will subsidize this plant to the tune of $400-700 per ton of CO2 reduction

This is the kind of thing to think about when people talk about carbon taxes or cap-and-trade programs. One of the problems with pricing carbon is whether we have the political will to price it high enough to really make a difference. For example, the European ETS program, a cap-and-trade system, currently prices carbon emissions at a meager $16 per ton of CO2. And that’s after four years of operation.

But compare that to what the Illinois legislature just did: they put an effective price on carbon of more than $400 per ton of CO2. If they’re willing to do that — if legislatures are willing to pay rates that high — then that’s the market price of carbon. The only question is whether we’re willing to charge that price openly, with the carbon charge going to the public, instead of being hidden inside a complex giveaway to a favored corporation. Count me on the side of the public on this one.

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate