Climate Change - Basin Electric Power Cooperative

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Climate Change - Basin Electric Power Cooperative

Climate Change

Legislation

The Carbon Conundrum


Climate Change

The debate is everywhere


Climate Change

• Growing scientific and public opinion that CO 2

emissions are contributing to climate change…

• Priority of Obama Administration …

• U.S. responsible for 1 / 4 of global CO 2 emissions…

Electricity sector responsible for 1 / 3 of U.S. CO 2

emissions…

• General agreement that technology solutions are

needed…


How can the electricity

industry respond?


Climate Change

Basin Electric supports reasonable climate

change legislation

• We want to be a part of the solution, not part of

the problem


Energy Diversity


Developing New Technologies

• Commercial-scale pilot carbon capture project

at the Antelope Valley Station, Beulah, N.D.

• Working with a technology provider

• Anticipated start = 2013

• Goal = 90% CO 2 removal


Climate Change Legislation

• Cap and Trade

• Carbon Tax

• Research and

Development


What does $60/metric ton

mean to an average

household?

=

1 metric ton

carbon/month


Annual Electricity Cost

Increases to the Consumer

$10 -$60/metric ton carbon cost


Electricity demand will

increase by 50% by 2030.”

— U.S. Energy Information Agency


Power Supply Options Limited

• Natural gas price is highly

volatile

• Nuclear option available but in

the future

• Renewable, conservation and

efficiency can not yet meet full

base-load need


U.S. Economy

CO 2 Emissions (million metric tons)

7000

6000

5000

4000

3000

2000

1000

•Flat between 2010 - 2020

•3%/yr. decline beginning in 2020

•Results in “prism”-like CO 2 constraint on electric sector

0

2000 2010 2020 2030 2040 2050


Electric Sector CO 2

Reduction Potential

3500

* Achieving all targets is very aggressive, but potentially feasible.

3000

EIA Base Case 2007

U.S. Electric Sector

CO 2 Emissions (million metric tons)

2500

2000

1500

1000

500

Technology

Efficiency

Renewables

Nuclear Generation

Advanced Coal Generation

CCS

PHEV

DER

0

1990 1995 2000 2005 2010 2015 2020 2025 2030


Key Elements in Legislation

• Incentives for technology development

• Credit for early adopters

• Time to develop the technology

• Price ceiling for carbon (safety valve)

• Free allocations vs. auction

• Regulatory certainty

• All sectors must be included

• Worldwide effort


Call to Action


Questions to ask

• Experts say that our nation’s growing

electricity needs will soon go well beyond

what renewables, conservation and

efficiency can provide. What is your plan

to make sure we have the electricity we’ll

need in the future?


Questions to ask

• What are you doing to fully fund the

research required to make emissions-free

electric plants an affordable reality?


Questions to ask

• Balancing electricity needs and

environmental goals will be difficult.

How much is all this going to increase

my electric bill and what will you do to

make it affordable?


Take Action

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