CAPP, not Cedar Hill, could be stuck with global warming costs

Coal-fired electricity could clash with green image, and carbon cap-and-trade

Updated from an earlier post:

In exchange for locking in electric rates for 24 years with electrical provider Luminant via the Cities Aggregation Power Project, Cedar Hill (and other participating cities) are getting all coal-fired electricity.

THAT is how they avoid the volatility of commercial electric rates priced on natural gas rates.

But, Cedar Hill Mayor Rob Franke, and the city, have in the past presented an environmental image. How does coal-fired electricity square with this?

And, if President Obama and the incoming Congress pass a carbon cap-and-trade system, coal-fired electric prices are surely going up. Is there an "out" in the contract for Luminant if that happens? Was the possibility even discussed?

Possibly not. At the least, Luminant ain't discussing it now. Story co-author Elizabeth Souder says this:

I asked Luminant this question, and they wouldn’t give me a direct answer. As far as I understand, there’s no change in price, even if carbon emissions begin to cost money. I think this is a big risk in the contract, and I’m surprised it wasn’t addressed. Perhaps it was addressed and they didn’t want to tell us.

All good news on the economic side for Cedar Hill and other cities. But, what if we go beyond cap-and-trade to a full-blown carbon tax? Luminant still appears on the hook... unless it deliberately tries to break the contract.

There is no god and I am his prophet.

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