PA Consulting Group was engaged by Dynegy Illinois Power to complete analysis in response to EPA violations of the New Source Review’s Prevention of Significant Deterioration (NSR/PSD). PA analyzed both historical and projected emissions, including SO2, NOx, and particulate matter, to determine if the client’s coal fleet was in violation of PSD. PA provided litigation support and expert testimony, including cross-examination of the EPA’s case, and analysis if the client’s internal modelling projections during the violation period.
A major Independent Power Producer (IPP) retained PA to model plant operations to maximise gross margins for several of the client’s Mid-Atlantic plants under a consent decree between the company and the EPA, the Commonwealth of Virginia, and the state of Maryland. The consent decree involved both system-wide and plant specific caps for ozone and annual NOx emissions. PA evaluated all possible options to determine a feasible combination of reagent usage and generation limits that kept the plants in compliance, but also maximised gross margins for the client.
PA was retained by a major IPP to assess the impact of greenhouse gas legislative proposals for the ten largest US generators. The analysis projected carbon allowance prices to 2025 and reviewed regional impacts and impacts by fuel type for each of the generators and provided a clear picture of the range of impacts by technology and region. The analysis also provided a clear picture of which new plant technologies would benefit under GHG legislation. As part of this engagement, PA developed a model to project the values of both CAIR and Houston-Galveston NOx emissions allowances for the client. This model was utilised by trading organisations in developing their emissions allowance trading strategies based on their power and gas price forecasts.
A confidential client engaged with PA to provide an evaluation of a portfolio of existing generating assets in the MAIN, PJM and NYPP markets. The client was interested in understanding the effects of Clear Skies regulation which, if passed, would add mercury emissions costs to generators as well as NOx and SO2 emissions costs. PA utilised its proprietary multi-pollutant model to provide inputs to its fundamental market models. The team utilised the input to the model to determine realistic valuation of the client’s generating portfolio. In addition, the team examined what the client’s generating portfolio would be worth if current environmental emissions regulations found in typical bank models was utilised.