Coal Keeps Electricity Prices Affordable
One of the greatest strengths of coal is its low fuel price. Generally, states that rely the most on coal to generate electricity have the lowest rates. In 2011, 30 states had electricity rates below the national average retail price of 9.99 cents/kWh. Those 30 states, which on average, generate 60 percent of their electricity from coal, paid an average of 8.7 cents/kWh.
Affordable electricity is especially important for American families. Every dollar spent on energy is one less dollar available for other necessities. A recent ACCCE-commissioned analysis found that the 60 million American households with annual incomes below $50,000 will spend 21 percent of their after-tax income on energy in 2012, compared to 12 percent spent in 2001. That’s more than one-fifth of every dollar in take-home pay.
And low-cost energy is also important to American businesses. Given that energy prices are an important component in determining the cost of American products that must compete in global markets, maintaining access to affordable energy here at home plays a key role in growing our economy and creating jobs for American workers.
For these reasons, we are committed to policies that help keep energy costs affordable for consumers and businesses alike. And when it comes to producing electricity affordably – coal still remains America’s fuel of choice.