Author: Paul Ploumis
02 Dec 2014 Last updated at 00:54:09 GMT
SEATTLE (Scrap Monster): In its formal comments to the US Environment Protection Agency's (EPA) proposed ‘Clean Power Plan' (CPP), the American Iron and Steel Institute (AISI) noted that the proposed power plan could raise the electricity costs for American steel makers. This in turn would damage the competitiveness of the US steel industry and hurt steel industry jobs.

According to Thomas J. Gibson, President and CEO, AISI, the CPP could put steel producers in the U.S. at a disadvantage against competitors in other nations that generally have higher rates of greenhouse gas (GHG) emissions, and some of which benefit from subsidized energy costs. Such a result would not only be detrimental to the domestic steel industry and its employees, but to the larger global environment.

AISI notes that the production of steel is inherently energy intensive, and the industry consumes substantial amounts of electricity. In its proposal, EPA indicates that the CPP would cause nationwide electricity prices to increase between 6 and 7 percent. The economic impact of this electricity charge hike will prove detrimental for steel industry.

The US steel industry faces substantial challenges from international competitors. The volume of unfairly traded imports into the country has surged during recent times. The additional burden on electricity costs would threaten the existence of American steel industry, which already is operating under tight margins, it noted.