Statement of Energy and Air Quality Chairman Boucher

"Climate Change: Perspectives of Utility CEOs"

March 20, 2007

          This morning our climate change hearing focuses on the nation's electric utility industry as we welcome to the subcommittee the chief executive officers of some leading coal fired generators.

            As we draft a greenhouse gas control measure it is essential that we preserve the ability of electric utilities to utilize coal, our nation's most affordable and abundant energy resource with a 250 year reserve.

            If that ability is not preserved, and in lieu of coal utilities rely to a greater extent on natural gas, the resulting increases in natural gas prices would harm the national economy.

            We are already losing tens of thousands of manufacturing jobs, notably in the chemical industry, to countries which have lower and more stable natural gas prices.  Significant gas price increases would cause that job flight to worsen.

            Half of all US homes are heated with natural gas, and the elevated prices that have occurred largely because so many gas fired electricity generators are now in use, has placed severe stress on millions of family budgets.

            For the sake of those who heat with gas we must avoid placing greater stress on gas prices.

            Much of American industry is natural gas dependent and would suffer adversity if prices escalate.

            The key to avoiding those consequences is to draft our greenhouse gas control measure to ensure that utilities desiring to do so may continue to use coal.

            I look forward to the advice of today's witnesses about how that legislation should be structured to achieve that goal.

            I would also note that with the leadership of today's witnesses, the trade association representing investor owned utilities has announced the industry's intention to work with the subcommittee in drafting a control program of economy wide application that does not dislocate any economic sector.  I thank our witnesses for their role in developing that industry position, and I look forward to working with the industry then to achieve that result.

We are particularly interested this morning in the views of our witnesses regarding the potential for carbon capture and storage technologies to enable utilities to continue to rely on coal as the predominate fuel for electricity generation.

            What do we need to provide by way of federal resources to assure the early deployment of affordable and reliable technology?

            Should we draft the schedule for the implantation of carbon controls to coincide with the arrival of reliable and affordable control technology?

            What other core concerns should we be aware of when we begin the legislative drafting process later this Spring?

            I thank out witnesses for joining us this morning, and I look forward to their answers to these questions.

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