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Unhealthy Profits: How America's Electric Utilities Would Reap Millions From President Bush's Unhealthy Skies Initiative

Environmental Action

8/23/05

Executive Summary | News Release

Download the full report. (PDF, 192 KB)


Executive Summary

High levels of mercury emissions are threatening public health.
- Mercury, a neurotoxin, is known to cause learning disabilities and developmental delays in children, and lead to an increased risk of heart disease in adults.
- EPA scientists estimate that one in six women of childbearing age has enough mercury in her body to put her child at risk should she become pregnant.
- Coal-fired power plants are responsible for more than 40% of manmade mercury emissions in the United States.

Under current law, coal-fired power plants must reduce their mercury emissions by maximum achievable levels to reduce harm to public health.
- Power companies have many options to reduce their mercury emissions, including investing in clean, renewable energy and energy efficiency, as well as reducing demand. However, even emissions at coal-fired power plants can be reduced by 90% by 2008.
- For most power plants, activated carbon injected into the flue and then captured by a fabric filter before it exits the smokestack is the least expensive and best option for reducing mercury emissions by 90%.
- Installing mercury controls at all U.S. coal-fired power plants would avoid more than $5 billion a year in health care and related costs, according to a recent Harvard study.

The electric power industry is fighting to weaken clean air rules rather than complying with vital public health protections by reducing mercury pollution.
- One company, Southern Company, spent more than $11 million on lobbying costs in 2004 alone. Edison Electric Institute, the lobbying association for the electric industry, also spent $11 million on lobbying costs in 2004.
- Both Jeffrey Holmstead at the Environmental Protection Agency and his likely successor, Bill Wehrum, formerly worked for a lobbying firm called Latham and Watkins, which represents Cinergy and other industry players. When the EPA wrote its rules to regulate mercury emissions, it used language recommended by the firm - language ensuring that many plants will not have to clean up their emissions until 2030 or even later.

If the electric industry succeeds in eroding the public health protections built into the Clean Air Act, the dirtiest power companies will unjustly profit at the expense of public health.
- Southern Company, the owner of 22 coal-fired plants, will realize profits of at least $181 million and up to $469 million by avoiding mercury pollution controls.
- American Electric Power (AEP), the owner of 19 coal-fired plants, will realize profits of at least $166 million and up to $431 million by avoiding mercury pollution controls.

Congress should uphold protections to reduce mercury exposure and require power plants to reduce their mercury emissions by 90% by 2008.
- Repeated attempts to pass or cut a deal on the Bush Administration's Unhealthy Skies initiative (S131) should continue to be forcefully opposed by Congress.
- Congress should also overturn the Bush Administration's recent EPA rule by passing the Leahy-Collins Mercury Resolution in September 2005.

 

 
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