The member companies of the Edison Electric Institute (EEI) are committed to addressing the challenge of global climate change and support an 80-percent reduction in greenhouse gas emissions by 2050. We've been working for more than three years to ensure climate change legislation protects electricity consumers.

We believe the time is now to address climate change in a way that protects the environment and electricity consumers. And we stand ready to work with the U.S. Senate to move forward on smart climate legislation we can all support.

It's not easy. That's because we depend on electricity for nearly everything we do. But, do you know where your electricity comes from or how it gets to where you need it? Do you know what electric companies do to protect the environment? More important, do you know why there is so much focus now on the electric power industry in the context of the climate change debate?

Most people don't know that the U.S. electric power industry leads all other sectors in taking voluntary actions to reduce GHG emissions. Today electric companies are working to reduce their GHG emissions by generating electricity in a cleaner manner, while also meeting our country's ever-growing demands for electricity. Through joint government-industry partnerships and through international efforts, the industry is already making positive climate progress.

That's because a full suite of cleaner-energy technologies is essential for meeting growing demands for electricity while also ensuring that substantial GHG emissions reductions are made. Some of the technologies are currently available - although at a higher cost than conventional generation sources - but others are not, and all have different time horizons. What are these technologies? What are the challenges to fully implementing them? And what will happen if deadlines in federal legislation for reducing GHG emissions are not in sync with the availability of these technologies?

The electric power industry strongly supports enactment of federal legislation to reduce GHG emissions. While a national climate policy will result in higher energy costs, Congress can take important steps to help reduce the cost increases to all electricity customers, while also protecting the environment. Climate change policy must include strong consumer protection measures, including the allocation of emissions credits, known as allowances; a "collar" on the price of emissions allowances; and the wide and robust use of emissions offsets. So how will these measures help electric companies reduce GHG emissions and reduce cost increases to consumers?

Developing and deploying all of the technologies needed to sharply reduce GHG emissions is a long-term proposition, and the price tag will be hefty. Electric companies will need to find climate change solutions that help get the job done, while allowing them to continue to deliver an affordable and reliable supply of electricity to meet the nation's growing demand for power. The biggest challenges will be fashioning climate change policies that protect the environment and all electricity customers, without damaging the U.S. economy, and that engage comparable actions by the other major emitting nations.