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Many factors will contribute to the costs of climate policy, making it virtually impossible to accurately predict the potential costs of any legislative proposal. Various government agencies and other groups have calculated cost estimates for both electric companies and their customers. Not surprising, there is a wide range of estimates, based upon the various economic models and assumptions used in the calculations.
The ultimate costs of climate policy will depend upon several factors contained in the legislation, including the targets and deadlines for reducing GHG emissions, and the allocation of allowances and other cost-containment measures. Electricity prices also depend upon where customers live and the regional factors that affect their rates, such as the fuel mix used to generate power.
While no one can accurately predict the true costs of climate policy, we do know that effective consumer protection measures can limit negative economic impacts on consumers and the economy.
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