Deregulation's Impact on Resource Studies

RIMSTIDT, DANIEL L.; Cinergy Corp., Planefield, IN

Deregulation is being both welcomed and feared by the Nation's providers of electricity. Welcomed, because electric companies will be able to compete and fully utilize their assets.
Deregulation will not change customer's desire for a reliable supply of electricity; nor will it change government regulations designed to protect air and water quality. However, deregulation will focus attention in the cost of generating electricity. A thorough understanding of existing and potential coal supplies is imperative, because fuel accounts for about 70% of the cost of producing electricity at t coal-fired plant.
Resource studies that provide useful information on the reliability, environmental impact, and cost of coal supplies are necessary to accurately ascertain and effectively manage generation costs. Coal consumers need to know the quality and quantity of fuel available to them. Coal suppliers must accurately project their costs and evaluate the potential for new, more productive techniques. Policy makers have an obligation to understand physical, technological, and economic limitations to achieve the appropriate balance of the public's interest.

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