Friday, October 23, 2009

Billion Dollar/Year Cap-and-Trade Beneficiary Praises Cap-and Trade (EXC)

Exelon is a member of the lobbying group USCAP. The company recently quit the U.S. Chamber of Commerce over the chamber's position on climate change.
Hows about we make a deal? No free handouts for special interests?
Cap-100% auction-100% rebate to the taxpayers.
From our July '09 post "Hilarity: Exelon's PECO Subsidiary Rev's Down Because of "Unfavorable Weather" (EXC)":
...*From the company's 2nd quarter slide-show (p.3):
Lowest carbon intensity in the sector - $1.1 billion(2) and growing annual upside to Exelon revenues from implementation of Waxman-Markey legislation

(2) Assumes $15/tonne carbon pricing.
From a letter to NRG shareholders during the takeover attempt:
We are offering you securities in a company… whose value rises rather than declines as carbon is priced into the marketplace…
Talk about having a vested interest in the legislation!...
Here's a Reuters story from a week ago:
Exelon CEO Says Cap-and-Trade Approach to Carbon Emissions is Best for Economy
Exelon Chairman and CEO John W. Rowe said yesterday that cap-and-trade is the
best approach for addressing global warming while sustaining an economic
recovery. In a keynote address at the PennFuture Southeast Global Warming
Conference in Penn Valley, Pa., Rowe said reducing carbon emissions will cost
money, but the alternatives to cap-and-trade will cost more.

"The best way to address the climate problem and protect our nation`s fragile
economic recovery is through cap-and-trade, which is the least expensive
solution," Rowe said. "Prices will go up, just not as much as with cruder tools.
Plus, the legislation has provisions that will help reduce the impact to

Rowe said that options like new nuclear plants, wind and solar, while appealing
to many, actually cost much more than commonplace solutions like energy

"Choosing more expensive options over cheaper ones adds costs that are passed
through to businesses and consumers," Rowe said. "That`s why we need a climate
bill that takes advantage of the power of appropriately regulated and monitored
markets, which will drive competition, innovation and low-cost solutions."