The Midwest Independent System Operator (MISO) released initial study results from a regulatory impact analysis on the proposed EPA carbon rules for power plants.
The study consists of two phases that calculate compliance costs within MISO’s footprint by applying the assumptions in EPA’s draft rule and examine the range of emission reductions and their costs under various future policy and economic assumptions. Initial findings indicate that compliance options beyond those proposed by EPA could achieve the proposed emission limitation at a lower cost. Further, regional compliance options save approximately $3 billion annually compared to sub-regional compliance and up to an additional 14 gigawatts of coal generation capacity could be at-risk for retirement.
The period to provide comment to EPA on the proposed rule was recently extended to December 1 and the rule is expected to be finalized June 2015. For more resources on EPA’s proposed carbon regulations, see the Hamilton Consulting Group’s Carbon Regulation for Power Plants Issue Page.