Carbon Dioxide: Regulating Emissions Following a Long and Winding Road

Issuers seeking to build new coal-fired electric generation capacity will significantly increase their overall business and operating risk profile -- in part due to the sheer size of the investment and exposure to cost escalation. Risk mitigation varies with specific terms and conditions associated...

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Bibliographic Details
Published inNatural gas & electricity Vol. 25; no. 7; p. 19
Main Author Hempstead, James
Format Journal Article
LanguageEnglish
Published Hoboken Wiley Periodicals Inc 01.02.2009
Subjects
Clean Air Act-US
Coal-fired power plants
Emissions control
Environmental regulations
Risk
United States > US
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Summary:Issuers seeking to build new coal-fired electric generation capacity will significantly increase their overall business and operating risk profile -- in part due to the sheer size of the investment and exposure to cost escalation. Risk mitigation varies with specific terms and conditions associated with each development project and by issuer-sponsor. The risks and challenges for new coal-fired electric generation development plans have existed for many years and are generally incorporated into the ratings and rating outlooks for specific issuers and/or projects, including investor-owned electric utilities, municipal utilities, generation and transmission cooperatives, and nonregulated wholesale merchant generators. Emission control technologies associated with a coal plant represent some of the most critical aspects of a plant's operations, including capacity factors, mean-time between failure, economics, and valuation. Regulating CO2 emissions under the provisions of the Clean Air Act may prove to be a complex endeavor, and the unintended economic consequences could occur.
ISSN:2692-3831
2692-3823