Generation Sector Update   
May, 2007
ENVIRONMENTAL CONTROLS ISSUE AREA

Combustion Performance and NOX Control (Program 71)

Production Cost Optimization Project initiated.

Following a web cast in late March for final member feedback, the Production Cost Optimization Project was initiated in April under Heat Rate and Cost Optimization (71.005). Participants will commit to a 1% improvement in heat rate by implementing one or more recommendations provided by an EPRI-led team following an on-site appraisal. After benchmarking the as-found heat rate, the team will return to document the improvements. The list of recommendations will include potential capital investments and operating changes. Increases in fuel cost coupled with the expectation of some form of CO2 tax have driven the growing interest in heat rate improvement. Six site appraisals have already been scheduled. For more information, contact Jeff Stallings at 650.855.2427 (jstallin@epri.com).