Managing Uncertainty Through Strategic Planning

摘要

Demand for electricity continues to increase as their population grows, as the average size of the housing stock increases and as desires for ever more energy-intensive electronics such as computers and big screen televisions remain strong. For the last several years much attention has been focused on the various legislative proposals to regulate greenhouse gases. For the eastern US, the EPA has proposed the Transport Rule to control ozone and particulate matter emissions which cross state lines. Intended to replace the court-remanded 2005 Clean Air Interstate Rule, the Transport Rule directly targets power plants in 31 eastern states by requiring significant emission reductions for sulfur oxides and nitrogen oxides. Wind and biomass-based electric generation reach a levelized cost below that of coal-fired generation at allowance prices less than $20.00 per ton. Although electric utilities face uncertainties from pending legislation and regulation, utility managers should not feel paralyzed to act.