The Edison Electric Institute Board of Directors has embraced federal climate change legislation capping greenhouse gas emissions by creating and adopting an updated climate change framework. The framework calls for an 80% emissions reduction by 2050, without passing on major costs to the consumer.
“We believe these principles will help assure that U.S. climate policy is successful in both reducing greenhouse gas emissions and addressing the very real cost concerns of our customers as much as possible,” said EEI Chairman David M. Ratcliffe.
The framework recommends that the industry take a more unified approach to reducng emissions, rather than an “every company from themselves” approach. under cap-and-trade legislation. The EEI board has also recommended emission allowances of 40% to the electrical power sector.
This new framework builds upon February 2007 documents that the EEI created to support mandatory federal carbon capping legislation. EEI president Tom Kuhn says that these new polices and goals take the electrical industry’s commitment to the environment to a higher level. Their formula would pass emission allowance benefits directly to the consumer to help cut costs. To make this possible, the EEI calls from firm a price floor and ceiling for carbon costs, which expand over time as new technologies develop.
Companies belonging to the EEI provide about 70% of electric power in the United States. There are also 65 International affiliate members and more than 170 supplier associate members. In 2008, the group reported that upcoming changes in efficients to reduce electric power consumption by up to 11% over the next twenty years.