“Higher energy costs generally mean that consumers must spend a larger percentage of their income to maintain their current level of household energy services.  At the same time, significant quantities of energy are needed to produce and transport the many non-energy goods and services.  The projected higher costs of these goods and services would be expected to magnify the loss in household purchasing power associated with the direct purchase of energy services.  At the same time, higher energy costs across the economy as a whole would lower income.  We have already discussed how average labor income would be reduced.  Similarly, lower returns on investment would reduce household income from savings and retirement funds.  [The figure below] shows the increasing erosion of household purchasing power that is projected as a result of ACESA, due to the combination of all these factors.  These estimates of changes in household purchasing power are based on the assumption that all auction revenues are returned to households on a per capita basis and that the value of allocated allowances are (sic) also returned to households in the form of utility rebates and increased investment income from companies receiving allocations.”[1]