# Presentation: 639639

## Integrated Planning Model (IPM)What It Is, Who Uses It, How It Works, What It Can Show You

*Presentation for*
**For the Clean Air Act Advisory Committee**
**Permits/New Source Review/Air Toxics Subcommittee**
**Utility MACT Working Group**
- April 3, 2002

## IPM Is a Dynamic Linear Programming Model that Analyzes Many Power Company Issues

- Developed by ICF Consulting
- Objective: Constructs Most Economical Way for a Specified Set of Electric Generation Units to Operate  to Meet Load Demand Subject to Constraints.
- IPM Can Analyze a Single Power Company’s Operations, or the Entire Grid.  It Can Look at a Day of Operation, or Over 30 Years.
- IPM’s Uses Have Grown: Capacity Planning, Load Management, DSM, Environmental Compliance, Pollution Control and Grid Management Strategies.
- EPA Primarily Uses IPM to Analyze National and Regional Approaches to Pollution Control over a 15 to 20 Year Period.

## EPA Is One of Many Users of IPM

**EPA Has Used IPM to**:
- Support Rules:  Title IV NOx, NOx SIP Call, Revised NAAQS, Cooling Water Standards
- Evaluate Effects of 1990 Clean Air Act Amendments
- Analyze Environmental Impacts of Restructuring
- Investigate CO2 Reduction Strategies
- Consider Multi-Pollutant Controls

**Other Users Include:**
- Ozone Transport Commission (OTC)
- Ozone Transport Assessment Group (OTAG)
- Edison Electric Institute
- Clean Air Task Force
- Federal Energy Regulatory Commission
- Western Regional Air Partnership (WRAP)
- Clean Energy Group
- National Coal Association
- Electric Power Research Institute
- Southern CAL Edison, PacifiCorp, AES, Florida Power, and Many Other Private Power Companies
- Tennessee Valley Authority
- Multi-Client Study/Service Subscribers

## Conceptual Overview of How IPM Works for EPA

**IPM’s**
**Problem-Solving**
**Software**
**(“Engine”)**

**Generation Unit Data**
- -Aggregated into Model Plants

**Power System Requirements**
- - Electric Demand,
- -Transmission Limits,
- -Operational Constraints

**Emission Control Technologies**
-  for NOx, SO2, Mercury, CO2

**Fuel Assumptions**
- -Coal, Gas and Biomass Supply Curves
- -Oil and Nuclear Prices
- -Fuel Dependent Emission Factors

**Set-up Rules **
**and Parameters**
- Run Years
- Retrofit Pattern
- Financial Assumptions

**Run Specification**
- - Area Covered
- - Pollutants Covered
- - Approach to Controls
- - Timing of Approach

**Outputs**

## EPA Set Up IPM to Focus on the Effects of Controlling Emissions from Coal-fired Generation

- EPA Groups Coal-fired Units with Relevant Similarities into “Model Plants” to “Run” in IPM.
- Models Plants Have Many Compliance Options: Controls, Fuel Types, and Operations.
- Already Model Plants Consider Boiler Type, Existing/Future Pollution Controls, and Coal Uses – Key Issues Related to Mercury Control
- IPM Examines Production, Transport,  and Uses of Different Coal Types - Accounts for Emissions Characteristics.
- IPM Considers Fuel Switching Potential between Coal Types and with Natural Gas

## IPM Provides “Information-Rich Results”

- Outputs Cover:
- Emissions: NOx, SO2, Mercury, CO2
- Pollution Controls
- Equipment Installed
- Fuel Switching
- Operational Changes
- Generation Capacity  - “Existing” Units, Additions, Retirements, Adjustments
- Fuel Mix Changes and Consumption
- How the Power System Collectively Adjusts to Relevant Features of the Model Run Examined
- Cost and Price Information
- Most Often a Policy Case Is Compared to a Base Case to See Changes
- You Can Examine Most of IPM’s Outputs at the National, Regional, State, Utility, and/or Generation Unit Level for One or More Run Years.

**IPM’s**
**Problem-Solving**
**Software**
**(Engine)**

## EPA’s Clean Air Markets Division Has Produced Detailed Documentation of How EPA Uses IPM

- Can find documentation at:
- _[www.epa.gov/airmarkets/epa-ipm](http://www.epa.gov/airmarkets/epa-ipm)_
- EPA Manager of IPM:  Elliot Lieberman
- 202 564-9136