This strategy would delay the capital outlays of installing the scrubbers by five years, but in Phase One Bowen would have to buy allowances or burn lower-sulfur coal.
Compared to other plants that would be regulated in Phase One, Bowen was fairly clean; many other utility plants, including some in the Southern Company system, were emitting sulfur dioxide in quantities up to two times higher than Phase One levels.
Allowances could be bought or sold on the open market, and a multiplant firm like the Southern Company could also move allowances from one of its plants to another in an internal transaction.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. From yearit would receive allowances worthtons per year. Get Access Acid Rain: I have calculated only the excess of cost that might be required to deploy an option.
Completed init was capable, when all four of its generators were running at capacity, of producing enough power to serve the residential, commercial, and industrial demands of 1 million people. The factors available are: To calculate the total costs involved for each of the three options, I have considered only those factors that are not common in all.
The current operating costs and all costs that do not change amongst the options have been left out as these costs would remain same and will have no effect on the decision. There were several options for complying with the new law.
As a result of the analyses, Option 3: To comply with this new law, Southern Company had the following options: The issue with this approach is that we are the net present value of the cost is high. They would be granted allowances to emit a certain amount of sulfur dioxide, based on the amount of electricity they had generated in the past.
A second possibility was that the company might be allowed to recover its costs only if it could show that it had complied in the least-cost manner. The Southern Company Essay Sample Early inmanagers at the Southern Company were reexamining their strategy for complying with the acid rain provisions of the amendments to the Clean Air Act.
The plant would receive allowances fortons of sulfur dioxide in each of the five years beginning in Starting in the yearit would receive allowances worthtons per year. During Phase Two, Bowen would have to purchase some allowances.
The scrubbers were not expected to have an appreciable salvage value.
The amount and cost of high-sulfur coal required to generate 21, million kilowatt hours every year is different from the low-sulfur coal rate and quantity.
The gases from the generator already went through one pollution-control device called an electrostatic precipitator before release to the atmosphere; the precipitator eliminated most of the ash and particles from the gas.
If scrubbers were installed, the gases, after leaving the precipitator, would enter another large chamber where they would be mixed with a slurry of water and limestone. If a plant burned low-sulfur coal, the gases leaving its boilers would be sufficiently low in sulfur that scrubbers could not remove enough additional sulfur to pay for themselves.
The largest Southern subsidiaries, Georgia Power and Alabama Power, provided most of the electricity in their respective states.
Also, since the plant will be operating as it currently is, there are least chances of unexpected malfunctioning of the plant. A firm faced fines or other sanctions if its emissions exceeded the permitted level, but it had no incentive to reduce its emissions below the level specified in the permit.
In Georgia, the Southern Company paid federal and state income taxes at a combined effective rate of Although we have to buy allowances in most of the years, still the lower levels are better for the environment.Related Documents: Acid Rain: the Southern Company (a) Case Analysis Essay Acid Rain Essay Acid Rain Acid rain is a type, or form, of precipitate that includes unnaturally high.
Acid Rain: The Southern Company Essay Sample. Early inmanagers at the Southern Company were reexamining their strategy for complying with the acid rain provisions of the amendments to the Clean Air Act.
Acid Rain: The Southern Co. (A) MENU. SUGGESTED TOPICS; The Southern Co., an electric utility, is planning its compliance with the amendments to the Clean Air Act.
The company must. Acid Rain: The Southern Company (A) Case Analysis | Production Processes and Costs| Executive Summary In the yearthe Southern Company that held the Bowen plant, a coal-fired steam electric plant had to decide on the various options available to comply with.
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Group 8 Acid Rain. Massey Ferguson Case. ICE FILI. Report of. Acid Rain Introduction “Acid rain is rain that has been made acidic by certain pollutants in the air.
Acid rain is a type of acid deposition, which can appear in many forms. Wet deposition is rain, sleet, snow, or fog that has become more acidic than normal” (1).Download