Supplemental Project:  Analysis of CO₂ Policy Impacts on Western Power Markets
Collaborative Analysis of CO₂ Policy Impacts on Western Power Markets (1015421).  EPRI is launching a study for the Western Electricity Coordinating Council (WECC) on potential CO₂ policy impacts on Western power markets.  Determining the impacts of climate policy on the electric power industry is a complex problem that requires considering both regional diversity and the linkages among markets for fuel, power, and emissions.  To examine this complex issue, EPRI has developed an analytical framework for assessing the economic impacts of climate policy on the electric power industry, and has applied the framework to determine how specific CO₂ emission penalties would affect existing and proposed power plants in two prototypical regions—“Coal Land (ECAR/MAIN)” and “Gas Land (ERCOT).”  Work under this Supplemental Project Notice will apply the EPRI CO₂ market analysis framework to the WECC system as it stands today and in future years (2015, 2020, and 2025).  The intent is to develop analytical insights that will help WECC utilities evaluate investment in new generation and to communicate these insights to stakeholders.  An additional goal is to explore the impact of alternative implementations of state-level policies to restrict electric-power-sector CO₂ emissions.  The project will produce two sets of deliverables:

• General analysis results for the WECC region, including an assessment of the impact of climate policy on power prices, regional emissions, and the cash flows to new and existing fossil and non-emitting generation. These products will be available to all project funders.
• Utility-level results mapping the regional results to the assets of each participating utility, delivered in a private presentation to each participating utility’s analysts and management.

The price to participate in this project is $10,000 for entities with capacity of less than 1,500 MW, $25,000 for entities with 1,501–4,000 MW total capacity, and $45,000 for entities with more than 4,000 MW total capacity.  Companies that fund any Environment program can use Tailored Collaboration (TC) funds for up to half their price.  Six members of WECC have so far expressed strong interest, and others are encouraged to participate to increase the project’s scope and usefulness.  For more information, contact Vic Niemeyer, (650) 855-2744, niemeyer@epri.com.