‘Coal is a great resource’ Association head warns of cap-and-trade costs-
Courier Press – June 10, 2010 Having competitively priced electricity helps Kentucky attract companies and jobs, and that could be threatened by legislation to address climate change, the president of the Kentucky Coal Association said here Thursday.
Bill Bissett also challenged “the debatable science” of global warming, and said the proposal to reduce carbon dioxide emissions from coal-fired power plant through a method called cap-and-trade would be “completely overreacting.”
“When someone talks about wind power or cap-and-trade (to reduce carbon emissions when burning coal), ask who’s going to pay for it,” Bissett told a Henderson Chamber of Commerce breakfast meeting audience.
“Where’s the money going to come from?” he asked.
“Will it be your tax money or your electric bill?” Bissett continued.
“If it’s not answered,” he said, “it’s coming from you.”
As of February, Kentucky enjoyed the sixth-lowest residential electric rates in the country (averaging 7.96 cents per kilowatt-hour) and the seventh-lowest industrial rate (averaging 4.75 cents per Kwh), according to the U.S. Energy Information Administration.
“We’ve got inexpensive electricity because of coal,” which Bissett said generates 92 percent of power in Kentucky.
“That’s what brings jobs here,” he said.
Last year, coal accounted for 45 percent of power generation, followed by natural gas (23 percent), nuclear (20 percent), hydroelectricity (7 percent) and renewables such as wind and solar power (3.6 percent), according to the EIA.
“Coal is a great resource, not only for Kentucky but the nation,” Bissett said. “We need to go in every direction” for finding new sources of generation, “but coal provides that baseline when the wind doesn’t blow or the sun doesn’t shine.”
Coal also is an economic engine, providing jobs for 17,000 Kentucky miners and 68,000 people overall, including those in coal service industries ranging from trucking and railroads to concrete companies and engineering firms.
Meanwhile, Bissett noted that while the eastern Kentucky coal field is better known and accounts for 75 percent of the state’s coal production, the western Kentucky coal field “is very important and in many ways our growth area. There seems to be a bit of decline in eastern Kentucky and an uptick in western Kentucky.”
Kentucky mines produced 115 million tons of coal in 2009, down from the peak of 179 million tons in 1990. But the state still ranks third in the country in production, behind Wyoming and West Virginia.
Across Kentucky there are 279 underground mines, 273 surface mines and 14 active mountaintop removal operations, according to Bissett. Only one of those mines — Patriot Coal’s Highland Mine near the Henderson-Union county line — has workers represented by the United Mine Workers of America, he said.
Meanwhile, Bissett said the Friends of Coal license plate campaign has resulted in 24,000 plates being sold so far.
“I love driving around Lexington and seeing cars with those plates,” he said. “It gives people (who oppose coal) ulcers.”
“We do have our opposition,” ranging from environmental organizations such as the Sierra Club to President Obama “that I think is often well-intentioned but misinformed.”
“Our chamber is an ally for all of you coal businesses,” chamber President Brad Schneider told the several coal company representatives and those from companies that service the coal industry who attended the chamber breakfast.
“We are a friend to you,” Schneider said. “We know you are important to this community. You provide millions (of dollars) in salaries, and thousands of jobs are dependent on the coal industry.”