Governors Warn Energy Plan Could Stifle Growth

ALAN SAYRE

BILOXI, Miss. (AP) — The price of electricity and fuel could rise sharply and economic growth could be stifled in the Southeast and elsewhere in the country under tax proposals being considered in Washington, several southern governors said Monday.

During an energy conference sponsored by the Southern Growth Policies Board, the chief executives — both Democrat and Republican — called for open bipartisan discussion of items before Congress. They included cap-and-trade proposals on carbon emissions being pushed by President Barack Obama's administration and billions of dollars in federal taxes on energy production.

Republican Gov. Haley Barbour of Mississippi said those taxes would drive up the cost of gasoline, diesel fuel and natural gas, not only on consumers, but on industry.

"These policies have in common that they would all inevitably and substantially increase the cost of energy to American families and American businesses, especially manufacturing," Barbour said.

Industries facing such costs might move overseas into nations with less stringent standards, resulting in little progress in reducing greenhouse gas emissions worldwide, Barbour said.