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Social impacts due to higher electrical prices

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Before building a new power plant, a utility company must gain permission and procure the required permits for construction from the Environmental Protection Agency (EPA). At this time, the policy of the EPA is to limit construction of power plants to clean burning natural gas systems (to reduce emissions of CO2). One result of this policy is the reluctance of utility companies to build new power plants. California has recently experienced serious problems with their ability to provide enough electricity for its residents because of this reason. One result of this problem is that utility rates in California jumped 500% to 600% in a one-year period.

Be sure to keep in mind things like environmental impacts but also issues relating to social impacts due to higher electrical prices.

Reference no: EM132013997

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