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Deregulation will cause significant fluctuations in electricity prices, new study reveals

decade if no new policies are implemented to retard their growth. In contrast, sulfur dioxide emissions are expected to decline over the decade, as generators try to meet federal SO2 caps imposed by Congress.

The release of atmospheric pollutants in the power sector is sensitive to changes in electricity demand and generation, according to the study. For example, carbon dioxide emissions could be 7 to 10 percent higher by 2010 if power generation ends up being 12 percent higher than expected. Under the same conditions, emissions of nitrogen oxides will increase 5 percent, while sulfur dioxide emissions will remain relatively unchanged despite higher electricity demands. That`s because current law prevents national sulfur dioxide emissions from growing. However, with higher electricity demands, generators will have to invest in new technologies to control sulfur dioxide emissions, which will drive up electricity costs.


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Contact: Mark Shwartz
mshwartz@stanford.edu
650-723-9296
Stanford University
13-May-2001


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