Lexington, KY - With Kentucky's economy presently struggling and our election for the U.S. Senate receiving national coverage, the opportunity to plan for the future may not be foremost on our minds. However, we must keep one eye on the horizon, watching a state, national and global playing field change around us.
As president of the Kentucky Coal Association, I often say that my product isn't really coal; it's electricity. While coal generates more than 92 percent of the affordable electricity that powers Kentucky, most Kentuckians probably do not connect the black rock to their light switch or air conditioner. Yet, coal makes our electric bills among the most affordable in the nation - fourth lowest in cost, to be precise. Not only does inexpensive electricity allow us to keep large manufacturers like Toyota here at home, but it also attracts new employers to the commonwealth. Our low-cost power - fueled by Kentucky coal - is a magnet for business development.
Federal estimates, which industry prognosticators often consider conservative, suggest that our electricity demand will increase 40 percent by 2025. Should the economy recover more quickly, this increased demand could occur at a faster pace. I like to point out that this is not an electricity "suggestion" or "request," but an electricity demand.
Environmental extremists suggest that we have to move "beyond coal" and embrace renewable energy development. Many of us in the coal industry believe that these opponents of prosperity are wrong about abandoning coal but right about alternative energy development. Coal must be a part of our baseline energy production for the foreseeable future, not just for low-cost electricity, but also to meet the current demand of our consumers. Think about it: As angry as Americans were during the $4 a gallon gasoline days, could you imagine the public sentiment if there had been gasoline rationing or worse? While we grouse about higher costs in anything we consume or use, the lack of access to these same goods would simply be unacceptable. The danger here is not only the serious concern that our electric rates will skyrocket, like gas prices did a few years ago, but also that we may not be able to generate enough electricity to meet demand.
Currently, Kentucky's coal production is level, with some reduction in the eastern Kentucky coalfields, while we see some growth in the western Kentucky coalfields. Could we mine more coal, creating more jobs, in Kentucky? Absolutely. Faster approval of permits at the federal level would begin to fill this growing demand, but with the current administration refusing to approve new coal-fired power plants, I believe that the answer to our future energy requires more solutions than just coal.
It is well and good that the policy makers fully review our stance on nuclear and renewable energy like biofuels, wind and solar to encourage their prudent development. However, we should not create a false market through higher taxes, strangling our coal production, or more expensive electric bills. We need to explore all ways to power Kentucky, but make certain that coal is always part of this discussion. Coal provides the baseline, consistent and low-cost power that we depend upon. That is why we must be vigilant against those who would harm this tremendous economic strength that benefits all of us in so many ways. In 2007, Kentucky's coal industry supported House Bill 1, which supported the development of other forms of electric generation without passing the cost of this development to the consumers through higher electric bills. We need to find more solutions like House Bill 1.
Kentucky's coal industry sees the need to look at all forms of energy production as we chart the commonwealth's future energy policy. The key will be to have this discussion include coal, which may go against the wishes of some environmentalists. Conservation and sustainability programs are simply good business practices and a smart use of resources. We need to look at that same rationale as we meet the future electricity demands of Kentucky as well as the entire country.
Bill Bissett is president of the Kentucky Coal Association.