Economic Impacts Of Proposed Emissions Policies On Utilities

The Clear Skies Act 2003, and the Carper Amendments

For a private client, EDR Group analyzed the national economic impacts on a regional basis of electric and gas utilities meeting proposed emission targets. The costs of meeting emissions targets have the following potential consequences:

• Changes in electric and gas prices to all users,
• Shifts in mining activity around the U.S. and,
• Investment in sectors assembling new generation infrastructure due to retired capital, or
• A new mix of generation resources required.

A multi-area U.S. REMI model was used to forecast impacts through 2021 on GRP, income, and employment and business sales (total, construction, mining, manufacturing, non-manufacturing).

The results obtained by applying the REMI multi-region U.S. model became part of testimony before Congress in 2003.