Energy Procurement Blog

On December 9, 2011, the American Public Power Association (APPA) filed comments to FERC urging them to work with the EPA to provide the electric power industry with sufficient time to comply with the rules set out in CSAPR. This filing was a follow-up to a November 30th FERC reliability technical conference on the impacts of various EPA regulations on coal-fired capacity in the United States. The APPA believes the EPA should grant the electric power sector, particularly public power utilities, additional compliance time beyond the standard three years provided under the Clean Air Act...

*Notice - As of 12/30/11, the U.S. Court of Appeals has delayed implementation of the CSAPR.

Effective January 2012, the Cross-State Air Pollution Rule (CSAPR) will require 27 states, mostly in the eastern half of the United States, to significantly reduce emissions from coal fired plants. The purpose of this rule is to help states reduce ground level ozone and other pollutants, replacing the EPA's 2005 Clean Air Interstate Rule (CAIR). The first restrictions go into effect on January 1, 2012, with another wave of restrictions kicking in on May 1, 2012.

The question we ask is, "How will CSAPR affect energy prices"? Well, regions with heavy coal based generation could see their power prices increase...