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Published byGrace Marsh Modified over 9 years ago
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A Brave New World Cathy Woollums, SVP, Environmental and Chief Environmental Counsel NASUCA Mid-Year Meeting – June 2, 2014
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Pending EPA Regulations on Electricity Sources – rules not issued in coordinated fashion Land & Natural Resources Water Climate Air Waste & Chemical Management Transmission Siting and Permitting Avian Protection Endangered Species Vegetation Management Coal Ash PCBs in Electrical Equipment HazMat Transport NSPS – New & Modified Sources NSPS – Existing Sources BACT Permitting International Negotiations 316(b) Effluent Guidelines Limitations Waters of the U.S. NPDES Pesticide Permits Waterbody – Specific Standards Utility MACT Interstate Transport (CAIR/CSAPR) Regional Haze/Visibility Multiple NAAQS New Source Review (NSR) 3
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Rising expectations for reliability Aging plants (nearly 80% of coal plants >30 years old) Move from centralized power to customer-generated power Changing relationship between utility and customer Flat load growth nationwide – due to: – Low economic recovery from recession – Distributed generation – Energy efficiency Disruptive Changes Facing U.S. Utilities 4
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Impact of: – Flat to lower demand for electricity? – Less reliance on coal, more on natural gas and renewables? – Increased energy efficiency? – EPA regulations? Significant decline in greenhouse gas emissions – 2013: U.S. power sector CO 2 emissions were 15% below 2005 emission levels – Lowest levels since 1996 – 2020 reduction target under Waxman-Markey climate change bill was 17% below 2005 levels Changes and Trends 5
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No price on carbon (yet), but utilities act like there is one Renewables and nuclear need a price or penalty on carbon emissions in order to grow Impact of intermittent resources and renewable integration costs Minimal growth while investment needs and mandates increase – Obligations to build renewables (renewable portfolio standard, PURPA requirements) – Associated transmission – Compliance with EPA rules (pollution controls, fuel switching) With flat demand and rising capital needs, the unit cost of electricity will rise Uncertainties in the Market 6
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Choices – Options on renewables – Energy efficiency – Independence (limited connections to grid) – Enhanced reliability How to meet or exceed expectations – Transparent – Fair – Cost effective – Informed Changing Customer Relationships and Expectations 7
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Legislation – Colorado Clean Air Clean Jobs Act, Nevada SB 123 Regulation – Iowa Biennial Emissions Plan and Budget filing Hybrids – New Hampshire scrubber bill Other Influences – The “Polar Vortex” – Capacity – Reliability – Natural gas prices New ideas and consumer protections Legislative and/or Regulatory Changes? 8
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