How regional compliance can help states meet EPA emissions targets faster and cheaper

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How regional compliance can help states meet EPA emissions targets faster and cheaper

August 19, 2015

There are now at least three major transmission system operators with studies showing regional Clean Power Plan (CPP) compliance strategies will be more cost-effective than state-by-state compliances.

A new preliminary study from the Southwest Power Pool (SPP) confirms the findings of both the PJM Interconnection and the Midwest Intercontinental System Operator (MISO).

“For a state-by-state compliance approach, the capital investment cost and energy production cost totaled about $3.3 billion per year,” explained SPP Engineering VP Lanny Nickell. “The total capital investment cost and energy production cost for a regional approach is about $2.4 billion. It is almost a 40% savings associated with complying on a regional basis.”

As with other analysis produced before the final plan’s release, SPP’s Clean Power Plan Compliance Assessment – State-by-State was for the draft plan’s emissions reduction target for 2030. The final plan raised the target from 30% to 32% and extended the timeline to 2032.

“Compliance with the Clean Power Plan is best facilitated through SPP’s regional transmission planning process and energy market administration,” Nickell said after the final plan’s release.

Using scenarios that included an assumed $45 per ton carbon cost adder, “we tried to provide an indicative analysis that would be useful to the state agencies charged with developing compliance plans,” Nickell said.

Source:  Utility Dive

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