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Follow on Google News | SNL Energy’s Mark Hand Interviews ScottMadden on EPA Carbon RuleEPA carbon rule to remove last impediment to “building a lot of new gas plants”
By: ScottMadden, Inc. The following transcript has been edited for length. To access the full SNL Energy article, please click here (http://www.snl.com/ “The U.S. EPA has been the target of relentless attacks by the coal industry and its allies since the agency in September issued proposed greenhouse gas rules for new power plants. The industry is portraying the new restrictions on carbon dioxide emissions as the opening of yet another front in the Obama administration's so-called war on coal,” says Mr. Hand. Mr. Hand continues to write, “Noticeably absent from the debate is the participation of an energy sector that would seemingly be viewed as a natural ally of the EPA in its campaign to reduce carbon emissions: the natural gas industry. According to industry observers, though, even before the EPA issued its rule for new power plants, the gas industry had already won the battle over which fuel will be used as the feedstock for new fossil plants.” According to Mr. Pearman greenhouse gas rules for new plants, as currently written, bode well for natural demand from power plants. “They assure that no new coal plants will be built,” Mr. Pearman says. “Given the lead times for nuclear, that means that gas is the only game in town for baseload replacement.” Mr. Hand says, “While most analysts are not predicting a spike in natural gas prices in the near term, there could be sizable price increases later this decade if a surging U.S. economy collides with the ramping up of LNG exports and greater use of gas for electric generation, manufacturing and transportation.” “All other things being equal, a gas price spike, if sufficient in magnitude and duration, would drive more investment in coal,” Pearman said. But this scenario will not play out “under the strict carbon standards in the new rule,” he adds. Pearman also says, “The gas industry's silence on the rule could be attributed to it taking a longer-term view of the EPA's regulatory agenda. In its analysis, the industry recognizes that down the road, natural gas could be exposed to even tighter carbon regulations, given that a gas plant's carbon footprint—at half that of a coal plant—is still significant.” “Some environmentalists see it as only a matter of time before that level of carbon emissions should be deemed unacceptable," About Mark Hand Mark Hand is a senior editor at SNL Energy. He previously served as editor-in-chief of Gas Daily. He also has served as a senior editor at Financial Times Energy, McGraw-Hill, and Public Utilities Fortnightly. About ScottMadden’ Since 1983, we have been energy consultants. We have served more than 300 clients, including 20 of the top 20 energy utilities. We have performed more than 2,400 projects across every energy utility business unit and every function. We have helped our clients develop strategies, improve operations, reorganize companies, and implement initiatives. Our broad and deep energy utility expertise is not theoretical— About ScottMadden, Inc. ScottMadden is the management consulting firm that does what it takes to get it done right. Our practice areas include Energy, Clean Tech & Sustainability, and Corporate & Shared Services. We deliver a broad array of consulting services ranging from strategic planning through implementation across many industries, business units, and functions. To learn more, visit www.scottmadden.com | Twitter (https://twitter.com/#!/ Media contact: Mary Tew marytew@scottmadden.com 919-714-7628 End
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