Electric restructuring and the environment: Issue identification for Maryland

Conference · Wed Jul 01 04:00:00 EDT 1998

OSTI ID:20050602

Brown, D H; Kahal, M I

The State of Maryland is presently investigating the competitive restructuring of its electric utility industry. This raises a number of complex issues including the potential impact on the environment. To assist that investigation, the Power Plant Research Program (PPRP) has been conducting a comprehensive technical and policy review of the potential environmental impacts. The key analytic issues identified and considered include the following: Wholesale and retail open access could increase NO{sub x} emissions from Midwest coal-fired generation. If this occurs, it would impair air quality in Maryland and increase nitrate deposition in the Chesapeake Bay. This requires an assessment of the projected amount of ``excess'' coal generation in the Midwest available for export over the next ten years. This was evaluated using the latest NERC projections. Emissions in the Mid-Atlantic region will depend upon how and whether market forces accelerate plant retirements, including retirements of economically marginal nuclear capacity. While the quantitative impacts are uncertain, restructuring is likely to have demand side effects, changing time patterns and the overall level of power demands. This may have important implications for increased emissions. While these analytic issues warrant careful study, PPRP's review concludes that certain institutional changes, which may accompany restructuring potentially, are of even greater importance. In particular, the traditional ``cost plus'' form of monopoly regulation has fostered a high degree of cooperation between state environmental authorities and utilities, making it possible for utilities to voluntarily exceed the minimum regulatory or statutory standards. Restructuring also raises troubling questions concerning the feasibility of the coordinated environmental review for power projects conducted pursuant to Maryland's certification regulations.

• Research Organization: Energy Planning Programs (US)
• OSTI ID: 20050602
• Report Number(s): CONF-971214--
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
CAPACITY
CHESAPEAKE BAY
COAL
DEREGULATION
ENVIRONMENTAL IMPACTS
FOSSIL-FUEL POWER PLANTS
MARYLAND