FOR IMMEDIATE RELEASE
September 28, 2005
Contact: Josh Freed
(202) 225-4431
 
 
 WASHINGTON, DC – U.S. Representative Diana DeGette (D-CO) introduced an amendment today to reduce the natural gas crunch that is expected to increase prices by an average of 52 percent this winter.  The plan, which will be considered today by the House Energy and Commerce Committee, would create a market-based system to promote the use of renewable energy by electric utility companies.

“Americans cannot afford the gas prices they face at the pump, let alone the higher natural gas prices they will face this winter. Unfortunately, the Republican majority is pushing another energy bill that is a sop to industry,” said Rep. DeGette. “This will allow oil companies and refiners to make record profits at the expense of the national economy. Instead, we need a plan that will reduce energy prices, help consumers and increase our use of renewable energy.”

Rep. DeGette’s plan would create a Renewable Portfolio Standard (RPS) requiring electric generators to produce 1 percent of their electricity from renewable sources by 2008.  This would increase by 1 percent per year until 2027, when producers would be required to generate 20 percent of their electricity from renewable sources. Using proven market-based techniques, the RPS will allow companies to buy, sell, trade and borrow renewable credits, providing increased flexibility, cost-savings and greater economic efficiencies.

Eighteen states, including Colorado, currently have RPS requirements. Colorado’s law, which voters approved last year, requires electricity producers to generate 10 percent of their electricity from renewable sources such as wind, hydroelectric, solar, and biomass fuels by 2015.

“The Energy Information Administration is forecasting an average increase of 52 percent in natural gas prices this winter,” said Rep. DeGette. “Facing potentially budget-busting price increases, business owners and families are looking to Congress for help. Increasing electricity producers’ use of renewable energy can begin to ease the natural gas crunch.”

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