CARBON-REDUCTION COSTS IN NEW-ENGLAND POWER SECTOR

This paper examines the cost of reducing carbon emissions in New Engla nd's power sector. The analysis relies on detailed sectoral studies of costs and resource potentials for demand-side efficiency, cogeneratio n, renewables, and conventional resource options. Sectoral studies' re sults were integrated using a production-cost model to estimate the to tal cost and rate impacts of carbon reduction strategies relative to a business-as-usual forecast. To capture potential uncertainties, the a nalysis takes into account variations in capital costs, fuel prices, r esource utilization levels, and base case retirements of existing powe r plants. Results show that New England's power sector can freeze carb on emissions at current levels or reduce carbon emissions while simult aneously decreasing customers' total electricity bills.