Forsee Opposition To Energy Bill Based On Faulty Assumptions

The Tribune reports this afternoon that U.S. Rep. Henry Waxman, chairman of the House Energy and Commerce Committee, has responded to UM System President Gary Forsee's letter opposing federal clean energy and climate bill.  It turns out that Forsee's calculations, put together by the Director of Energy Management at MU, are based on an inaccurate understanding the the proposed legislation.

The numbers were based on Environmental Protection Agency and Energy Information Administration estimates and calculated based on the assumption MU would have to initially buy up to 30 percent of the greenhouse gas allowances, according to information from Paul Hoemann, director of university energy management.

But, Waxman wrote, one-third of the potential costs alleged in Forsee’s letter are based on the assumption that MU would need to buy allowances for its power plant.

“However, based on the information provided by the university power plant managers, the plant would not meet the definition of a covered entity under ACES, given the small amount of electricity it sells to the grid,” Waxman said. “The legislation exempts combustion devices that are part of cogeneration systems and that supply ‘one-third or less of [their] potential electric output capacity and 25 MW or less of electrical output for sale.’ ”

Additionally, the figures used to come up with Forsee’s numbers exceed actual federal estimates, therefore his costs were inflated, Waxman wrote.

A letter [Rep. Ike] Skelton wrote to Forsee said, “I am dismayed at the timing of the letter” opposing the legislation “and am disappointed that it mischaracterizes federal legislation.”

It's too bad Rep. Blaine Luetkemeyer's office didn't check the math or assumptions in Forsee's letter before they gleefully distributed it to the media.

The University provided a memo to Fired Up! outlining their calculations yesterday. Here it is, in full: