Utility response to Phase I and Phase II acid rain legislation - an economic analysis

Electric utility companies in the U.S. have already implemented their plans for compliance with the Phase I Acid Rain legislation contained in the Clean Air Act Amendments of 1990. Out of the 261 units located at 110 power plants affected by Phase I legislation (all located in the midwest and east), FGD systems were installed on only 13,500 MW of capacity, a total of only 14 plants on 25 units. This paper will summarize the total installed capital cost experience for these facilities, which included a variety of FGD processes, vendors, designs and performance requirements. Costs for other recent FGD installations will also be presented. In addition, potential compliance plan options for Phase II legislation requirements will be discussed, providing a description of the decision making process and the plant characteristics that would lead to installation of SO{sub 2} control technology. The paper finishes with an update on the results of the latest FGD economic evaluations that have been completed recently. Brief process descriptions are followed by the operating and capital cost estimate comparisons with commercial technology.