07 Dec 2010 Cases

Resource Planning Analysis for Colorado Coal Plants

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Compass Lexecon was retained by Russell Rowe of Rowelaw LLC on behalf of Noble Energy, Inc., Chesapeake Energy Corporation, and Encana Oil & Gas (USA) to provide independent analysis and respond to analyses submitted by other parties in a widely publicized proceeding investigating the reduction of emissions from coal fired power plants located in the Colorado Rockies’ Front Range. We conducted long-term resource planning analyses to evaluate the economics of future coal plant operations under a variety of input assumptions that tested the impact of coal plant shutdown versus continued plant operations with enhanced pollution emission reduction controls. These analyses assessed the economics of replacing older coal facilities with natural gas fired plants as well as renewable resources. We also analyzed and responded to the analyses submitted by the utility that owns the coal plants, as well as numerous intervenors. Compass Lexecon expert Joseph Cavicchi provided written and oral testimony clearly outlining the costs and benefits of the alternative plans put forth to reduce emissions. The proceeding concluded with a decision favorable to our clients that supported a pre-scheduled phasing out of older coal fired plants relying on natural gas resources for replacement electricity supply. Cavicchi was assisted by a team in the Boston office including David Molin and Daniel Meehan.

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