Benchmarks

Fortnightly Magazine - July 15 1998
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BY 2010, SOME $21.8 BILLION WORTH OF EMISSION control technologies will have to be installed at steam-generating plants to reduce emissions of sulfur dioxide and nitrogen oxide.

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Increased costs at these plants will boost power prices. These higher costs and higher revenues will increase profits of the five least competitive companies will lose $1 billion.

Power companies must increasingly incorporate environmental factors into strategic planning.

A key component of any environmental strategy begins with a core green marketing program--the ability to sell power with a lower environmental impact than the competition at a competitive cost. This definition is a departure from most existing green marketing programs, which offer renewable generation at a premium. Consumer research into green power finds a small segment of residential consumers are willing to pay a 5 to 20 percent premium for renewable electricity. This segment is a small as 1 percent or as high as 7 percent, depending on the local market and the premium.

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