Upton tackles energy rate increases

Published 6:41 am Tuesday, June 30, 2009

By By JESSICA SIEFF / Niles Daily Star
Last week was a busy week for Michigan Congressman Fred Upton.
Michigan's sixth district lawmaker hailed a recent decision by one of the big three automakers that could result in the retention of and estimated 1,400 jobs. At the same time, Upton spoke out about what he said could be the possibility of more jobs lost and tougher times ahead for Michigan families, opposing "cap-and-trade" legislation recently passed by the House.
The legislation is part of the American Clean Energy and Security Act of 2009, which Upton has claimed holds carbon mandates that outline the United States would have to curb their carbon emittance to match that amount emitted in the year 1910, when overall population differed by over 300 million people.
"Climate change is a serious problem that necessitates serious solutions," Upton said upon the House's passage of the act. "But cap-and-trade is a vicious assault on Michigan's working families who are already struggling to put food on the table and keep the lights on."
There has been plenty of talk since the beginning of the year of the probability of significant electricity rate increases facing Southwest Michigan families over time.
According to a report by Consumer's Energy, provided by Upton's office, the cost projections show a 13 percent cumulative increase in rates by 2012 with a total 38 percent increase by 2024.
"Study after study has indicated that families can expect to see their power bills increase by thousands of dollars and jobs will be lost at a time when we can least afford it," Upton said.
"Consumers Energy in southwest Michigan predicts hefty rate increases for local families in order to comply with cap-and-tax. It is well past time that we start standing up for Michigan's working families who have watched their paychecks, jobs and savings evaporate. We have a unique opportunity and a responsibility to reduce emissions and preserve our economy – the American public is desperate for solutions, but a national energy tax is not the answer."
Calling the cap-and-trade element of the recently passed act, a "scheme," Upton's office said "the Congressional Budget Office (CBO) conservatively estimated that rolling back the clock to reach 1910 emissions levels would cost $864 billion, while some estimates put the number closer to $1.5 trillion. Utility bills could increase 40-50 percent, and that will only make our business climate worse at this most critical time. According to some studies, the reckless cap-and-tax scheme will kill millions of jobs and dramatically increase utility costs for the average American household."
It was also stated that the CBO purportedly estimated gasoline costs would see an increase of 77 cents per gallon and 88 cents for diesel leaving some to wonder what that would mean for the country's reliance on foreign oil.
Upton took to the airwaves, appearing on C-SPAN to discuss his views of the House's move toward the legislation as well as putting out an article in The Hill.
Wrote Upton, "President Obama has stated that under a cap-and-trade scheme "electricity prices would necessarily skyrocket," to which his own budget director, Peter Orszag, has added: "[F]irms would not ultimately bear most of the costs of the [carbon] allowances but instead would pass them along to their customers in the form of higher prices … price increases would be essential to the success of a cap-and-trade program.
"Cap-and-tax will essentially kick working families when they are down," he added.
"In 2008, approximately 21 percent of all utility accounts were overdue, with folks carrying past-due balances, on average, of $160 on electric bills and $360 for natural gas. Families in coal-dependent states, particularly in the Midwest, could be hit even harder.
"Under the cap-and-tax scheme, we will all pay a new tax every time we flip a switch or fill up our gas tanks. In fact, our utility bills could increase 40-50 percent, and that will only make our business climate worse at this most critical time. According to some estimates, the reckless cap-and-tax scheme will kill millions of jobs and increase utility costs for the average American household dramatically at a time when working families can least afford it."
Co-chair of the Congressional Auto Caucus, Upton also responded to news that General Motors announced that it would build a new "next generation subcompact" automobile in Michigan, something the Republican congressman said could save 1,400 jobs.
"For the last 100 years, General Motors and Michigan have shared a rich history, and this storied partnership will continue well into another century as the revolutionary, next-generation vehicles of tomorrow are built by Michigan's workers," said Upton.
"I applaud General Motors for their confidence in Michigan's workers to help shepherd their re-emergence back to the top. The existence of so many suppliers in close proximity to the Lake Orion Plant made it crystal clear that there was an advantage to building GM's next generation vehicle in Michigan.
"GM's decision will provide a significant shot in the arm to our economy," continued Upton. "But the jobs saved are even greater than just the 1,400 assembly workers as the countless suppliers that dot southwest Michigan and those across the state will produce quality parts for the next generation vehicles, keeping folks in their jobs and making a paycheck."
Congressman Fred Upton will be in the Niles Daily Star newsroom on Thursday, July 2. Have questions for the representative of Michigan's sixth district? Send your questions to jessica.sieff@leaderpub.com and the Star will get his answers and publish them in Friday's Star.