The American Power Act and Electricity Bills

The Distortion

The drumbeat of spin is constant, all trying to push forward a flatly wrong notion about the effect of the American Power Act. From trade groups to legislators, many use the rhetoric of "taxes" or "higher energy bills" when talking about their opposition to any action on climate and energy.

The Truth

Recently, the EPA did an analysis of the costs of the American Power Act. They deliberately left out some of the benefits, but even still, they found that the APA lowered electricity bills for Americans. Here's the McClatchey reporting on it:

"The energy and climate bill that Republicans call a light-switch tax would lower electricity bills, at least in its early years, the Environmental Protection Agency reported Tuesday.

The EPA study of the proposed American Power Act, sponsored by Sens. John Kerry, D-Mass., and Joe Lieberman, a Connecticut independent, said that energy bills for the average household — not including gasoline — would decrease by 10 percent by 2020, rise by 1 percent in 2030 and rise by 16 percent in 2050. The increases after 2030 largely would be offset by rebates, protective plans for low-income households and other measures, the analysis said."

So, to sum up: lower energy bills right away, then whatever increases come later would be offset by rebates and other plans. These don't even take into account many of the benefits of the new law, so the result is likely to be even better.

Don't believe the rhetoric: the American Power Act is good for our energy economy.