LOUISVILLE, KY, Monday 1/3/2005 - Genscape Inc., the nation’s first and only supplier of real-time power plant output and transmission status information today said that its data show lower sulfur dioxide emissions from US power plants in 2004 compared to 2003.

The decline is a modest 0.9%, which translates into just under 100,000 tons. The data however point up a number of important trends for the country’s power plants and air quality management. SO2 is a precursor to acid rain and has been subject to a cap-and-trade reduction program by the Environmental Protection Agency since the 1990s.

• SO2 emissions dropped while coal-fired generation increased. Coal is the most significant contributor to sulfur emissions. This points to the success of power plant operators in better controlling their pollutant emissions.
• Despite this encouraging trend, the industry exceeded its initial allocation of allowable emissions for 2004. Plant operators have a reserve of allowances to offset the excess emissions, so plant operators are covered from the point of view of the cap-and-trade program.
• Nevertheless, the industry as a whole keeps exceeding its initial allocation levels as it relies more on cheap coal and shuns expensive but cleaner burning natural gas. This will continue to support high SO2 allowance prices and increase the operation costs of companies heavily dependant on coal generation.
• Eventually, companies will have to invest in more control equipment to avoid running out of emission allowances. This is already evident at the plants run by large companies with extensive coal fleets, whose emissions decreased while their power output increased. Those capital investments will be significant.

Genscape monitors electricity output at hundreds of plants and transmission points across the United States. The observed power output in MWh at those plants is translated into tons of sulfur emitted using data modeling techniques.

Genscape’s SO2 and nitrogen oxides (NOx) emission estimates are published in The Genscape Weekly Emissions Report.

ABOUT GENSCAPE

Genscape’s information gathering and distribution system consists of technology to monitor the real-time power output of power plants and load on high-voltage transmission lines. Information reported to customers includes highly accurate estimates of the real-time power output for generating facilities, power flows over strategic transmission paths, and associated information.

Genscape Inc. is the only company to have commercialized the provision of real-time power supply information to support decision-making for energy traders, power plant and line owners and operators, regulators, and other energy market participants. Genscape maintains a 45 person staff and an international headquarters in Louisville, Kentucky.