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.
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.