The President of American Electric Power says cap and trade will eventually drive up the price of electricity, but Mike Morris says it's a necessary step for the United States and countries around the world when it comes to dealing with climate change.

"We think that it's probably the best way to go about addressing the issue of global warming and I underline the phrase 'global warming' because, at the end of the day, that's the challenge," Morris said on Wednesday's MetroNews Talkline.

The U.S. House of Representatives has already approved the massive climate change bill that is now being considered in the U.S. Senate.

"We are trying to get the very best piece of legislation that we can which gives us an opportunity to move forward and do it," he says of the ongoing cap and trade debate.

If the cap and trade provision is approved as part of the bill, the federal government will bring down the amount of carbon released into the atmosphere gradually over time by issuing credits. 

Companies that produce more carbon than allowed will have to buy more credits.  Those that have not used all of their carbon allowances can sell their remaining credits.

Morris says global warming is real and cap and trade is the best option being considered to address it.

However, he says, it is an option that will cost you more.

"The cost of electricity is going to go up to address this issue of global warming," Morris says.  "It's a technology challenge and the technology is being developed."  AEP is currently testing out a carbon sequestration project at the Mountaineer Plant in New Haven.

Morris says in order to have an impact on the climate, though, it cannot be just the United States making these changes.  If the U.S. stands alone, Morris says it will only be the U.S. economy that'll be impacted.

"Clean coal is going to be as cheap or cheaper than any of the alternatives that you continue to hear people talk about."

American Electric Power serves five million customers in eleven states.  It is the largest coal powered utility in the United States.