WVU Electric Industry Restructuring:
Opportunities and Risks for West VirginiaInterim Report No. 3: Implications for Electricity Producers
NOTES
1. Computed from 1995 data reported in Utility Data Institute, U.S. Electric Power Plant Dar-Win & Custom Databases, CD-ROM, March 1997.
2. Employment data for Fort martin and North Branch missing.
3. U.S. Department of Energy, Energy Information Administration, Electric Power Annual 1995 Volume II, December 1996.
4. Computed from 1995 data reported in Utility Data Institute, U.S. Electric Power Plant Dar-Win & Custom Databases, CD-ROM, March 1997.
5. U.S. Department of Energy, Energy Information Administration, Natural Gas Annual 1995.
6 Computed with the IMPLAN input-output modeling system.
7. U.S. Department of Energy, energy Information administration, Coal Industry Annual 1995.
8. For example, independent power producer, AES, which owned 11,000 MW of capacity worldwide in 1996, report 94% overall availability factor in 1995 and 88% or better every year since 1990. AES Corporation Annual Report 1996, p. 11 and 1994, p. 4.
9. Federal Energy Regulatory Commission, The Transmission Task Force's Report to the Commission, October 1989, at p. 60.
10. Allegheny Power, "Response to Question 3 of Public Service Commission of West Virginia in Case No. 96-1491-E-GI,: June 4, 1997.
11. North American Electric Reliability Council (NERC), 1996/97 Winter Assessment, Reliability of Bulk Electric Systems, November 1996; and NERC, 1996 Summer Assessment, Reliability of Bulk Electricity Supply, May 1996.
12. Assuming a 10-year useful life, 20% to 40% load factor, gas at $2.10 Mcf, 5% discount rate.
13. For example, New York Republicans Senator D'Amato and Governor Pataki are uncharacteristically supportive of the recent proposed toughening of EPA soot and smog rules. The Energy Daily, July 9, 1997, p. 1.
14. U.S. EPA HQ Press Release, "EPA Plans Tougher Air Standards for New Power Plants," July 3, 1997.
15. See e.g., Weiss (1975).
16. See Joskow and Rose (1985) for a thorough discussion.
17. All figures are taken from the UDI Power Plant Module data base.
18. For explanations of this argument, see e.g., Joskow and Schmalensee (1983) and Kaserman and Mayo (1991).
19. For a full explanation of this argument, see e.g., Casazza (1996).
20. See, e.g., "New EPA NOx Rule Favors natural Gas," The Energy Daily, July 9, 1997, p. 1.
21. H.H. Holt, et al., State of New York Public Service Commission, February, 1990.
22. See W. W. Hogan, "Markets in Real Electric Networks Require Reactive Prices," The Energy Journal, 14(3) 1993, 171-200. Also, see F.C. Schweppe, M.C. Cramanis, R.D. Tabors, and R.E. Bohn, Spot Pricing of Electricity, Kluwer Academic Publishers: Nowell, MA (1988).
23. IPALCO Enterprises, Inc. "A White Paper for Restructuring the Electric Utility Industry," November, 1995.
24. The intergovernmental Panel on Climate Change recently issued a report stating that "the balance of the evidence" supports the proposition that there has been significant global warming (about ½ degree Celsius in the last 100 years), at least partly due to fossil burning. See, for example, Houghton, et al. (1996) and Karl et al. (1997).
25. John Browne, Chief Executive of British Petroleum Co., speech at Stanford University, quoted in Wall Street Journal, June 23, 1997, p. 1.
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