The Energy Company CEO that Wants to Cap and Trade
It seems that Entergy’s CEO and chairman Wayne Leonard is the one of the few energy industry leaders that doesn’t oppose a proposed cap and trade system that is being debated in Congress. In fact, Leonard is not only not opposed, but he supports the legislation — as long as it is the right cap and trade system.
Entergy Corporation, based in Louisiana, is blessed with natural gas and a sizable “fleet” of nuclear power generation stations. And we all know that nuclear power is clean* and natural gas, according to energy experts like Sarah Palin, is clean and green. And that means that Entergy produces electricity from some of the cleaner sources around in terms of carbon dioxide emissions.
*But not in terms of radioactive waste that lasts and lasts.
So, let’s say that Congress passes cap’n trade legislation that would auction off credits for companies to be allowed to produce carbon emissions. A company like Entergy would have to buy fewer of those credits or permits in order to cover its rather low levels of emissions. That means less costs are passed down to you, the consumer. That makes Entergy’s Leonard happy.
However, Entergy has not done much to expand its renewable power portfolio. And one form of the cap and trade law could include a government mandate as to how much renewable energy a company has to produce. That would make Leonard sad. He doesn’t think the Fed should mandate this renewable component, as he feels that the free market will prevail in encouraging companies to invest in the most economical renewables (if there are any in Leonard’s eyes) in order to decrease costs for pollution permits.
And then, there is the whole idea of the Fed giving away the credits to companies based on its individual emissions based on say a year chosen at random, like 2005. And if your company can reduce its emissions and not have to use all of those permits, your company can sell them to companies that still pollute. Well, Entergy had already reduced what emissions they could have by 2005, because they were responsible and did it way back in 2000. So, now all that hard work they already did, when it was voluntary, will work against them, as Entergy will get a smaller amount of credits to sell off to the the coal plant down the street, who never did anything in the first place or even now to reduce its emissions levels.
So, this insight into how one energy company views the current debate over cap and trade legislation is interesting to me, but also rather irritating. Think about it. Entergy is but one of many, many large and rich corporations that produce energy and do in it a way that pollutes the Earth. Each company is going to do its best to pressure someone in Congress to adjust, rewrite or add an amendment to the cap and trade law, if it even passes, that will be advantageous to that company, perhaps to the detriment to another company, who will then fight the new law. I just don’t see cap and trade passing any time soon, but then again, I’m not sure if it will make a difference in the long run.
And then again again, it’s not fair to blame the energy companies. They are only giving us what we want — cheap energy and a lot of it.
Reading the article in the Times-Picayune, I noted that Entergy is spending more than 4 million dollars on lobbying Congress to pass a cap and trade law that will benefit them. It makes you wonder how much the Coal Industry as a whole is spending to fight cap and trade altogether? What if all that money were spent on research and development of new technologies, more efficient energy infrastructure, and a better way to deal with spent nuclear fuel?
energy, Entergy, electricity, renewable energy, nuclear power, natural gas, Louisiana, cap and trade, Congress, carbon emissions, pollution
