Oct. 14--A report from the Environmental Protection Agency is buttressing claims by Midwest utilities that they would be penalized more than their counterparts in other states under a cap-and-trade global warming prevention bill passed this summer by the House of Representatives.

The EPA report, submitted in response to a request by U.S. Sen. Russ Feingold (D-Wis.), says 12 states led by California and New York would fare the best under the cap-and-trade plan. Wisconsin is one of 10 states -- located primarily in the Midwest -- that would fare the worst, the EPA said.

The EPA analysis delved into a technical but significant aspect of the House bill that seeks to reduce U.S. emissions of gases linked to global warming by 83% by 2050. Emissions would be reduced by setting a cap on emissions that would shrink over time, requiring changes in the automotive sector and by utilities and industries that burn fossil fuels at power plants.

A group that includes Madison-based Alliant Energy Corp. and Milwaukee-based Wisconsin Energy Corp. formed to challenge a formula that divvied up credits that would be granted to utilities under the bill to help them comply with the new mandates. They say the formula, developed by the largest utility companies in the country, benefits power companies on the East and West coasts while penalizing the Midwest.

"I have heard concerns from my constituents about how the climate change bill could unfairly impact Wisconsin," Feingold said in a statement. "I look forward to working with the administration and my colleagues in the Senate to ensure we address the serious problem of climate change without unfairly hurting Wisconsin."

Environmental groups have challenged the analysis, which was reported Tuesday by the trade publication Climate Wire. The Natural Resources Defense Council says it's not sure the EPA analysis accurately reflects the emissions for each state, Climate Wire reported.

The utility industry defends its formula, saying it gives credits to companies that have already taken steps to invest in energy production technologies that don't release carbon dioxide -- including wind farms and nuclear plants.

At a meeting last week in Madison, Jim Rogers, chief executive of the nation's third-largest power company, Duke Energy Corp., said the utility industry is committed to passage of a global warming mitigation law. Rogers, who chairs the Edison Electric Institute, a lobbying organization for the industry, said the electric utility industry's shift to supporting a cap-and-trade regime is one reason the measure passed the House in June.

Alliant supports a federal greenhouse gas reduction law as well, said utility lobbyist Zach Hill, but not the one passed by the House of Representatives.

"We applaud Sen. Feingold for getting to the bottom about what this bill could mean for economies located throughout the Midwest," Hill said.

-----

To see more of the Milwaukee Journal Sentinel, or to subscribe to the newspaper, go to http://www.jsonline.com.

Copyright (c) 2009, Milwaukee Journal Sentinel

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:LNT, NYSE:WEC, NYSE:DUK,

A service of YellowBrix, Inc.