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# OAR Box 

# 1828 Prepped byOllie Stewart



## Document

Number: 

# 303 ) IV-B- 7 Docket Number: 

# A-83-2 7

Printed 11/12/200811:12:59 AM Sheet 303 of 325P. 2 

## tf*" 

# A-83-2 7 I C IV-B- 7

rINCORPORATE D Internationa l Square
. 1 .85 0 KStreet , Northwest
. Washington , DC
. 2000 6 (202 ) 862-110 0

Januar y 19 , 198 7 MEMORANDU M TO :
FROM : SUBJECT : Fre d Porter , EPA

Wal t Stevenso n Crai g D . Ebert , ICF , Incrementa l Cost s t o Suppl yVer yLowSulfu r Coal s Attache d in Tabl e 1 ar e the incrementa l cost s t o suppl yverylo wsulfu r coal s int o eacho f th e te n Federa l regions . V e hav e provide d thes e cos t estimate s fo r thre e level s - - 0.7 , O.S , an d 0. 9 pound s sulfu r dioxid e pe r millio n Bt u for bituminou s an d subbituminou s coals . Thes e cos t estimate s ar e our assessmen t o f the additiona l cost s tha t wil l b e incurre d t o suppl yverylo wsulfu r coal s t o industria l consumer s compare d t o 1. 2 poun

d coals . A s w e discussed , thes e estimate s refe r onl yt o th e cos t t o suppl ythes e coals , no t th e marke t pric e tha t ma yb e charge d b

yproducer s for verylo

wsulfur coal . At a minimum , th e pric e o f verylo wsuifu r coa l wil l b e th e marke t pric e fo r lo wsulfu r (1. 2 pound ) coa l plu s thes e incrementa l costs . T o represen t thi s potentia l level , th e cos t incremen t in Tabl e 1 coul d b e adde d t o th e lo wsulfu r price s IC F ha s alread yprovide d t o EPA . Tabl e 2 provide s th e adjustmen t factor s t o conver t th e industria l price s EPAha s alread

yreceive d t o utilit yprices . Pleas e us e thes e factor s wit h caution . The yar e approximat e adjustment s onl yt o indicat e th e basi c differentia l betwee n industria l an d utilit yprice s int o Illinoi s an d Colorado , bu t shoul d b e sufficien t fo r you r purpose s a t thi s time . Pleas e fee l fre e t o cal l m e a t (202 ) 862-110 0 i f yo u hav e an yquestions . cc : Michae l Shelby , EP A Davi d White , Radia n

2692 CP. 3

f.&r -2- 

## TABL E 1 INCREMENTAL COST S T O SUPPLY VERY LO WSULFU R COAL S a

/

" (Januar y198 6 dollar s pe r MMBtu )

EPA Regio n

1 2 3 4 5 6 7 8 9 1 0 0. 9 Pound s

Bituminou s 0.1 6 0.1 8 0.1 8 0.2 7 0.1 9 0.1 5 0.0 1 0.0 0 0.0 0 0.0 0 S02/MMBt u

Subbituminou s N.A . N.A . N.A . N.A . 0.0 0 0.0 0 0.0 0 0.0 0 0.3 4 0.0 0 0. 8 Pound s

Bituminou s S 0.16/0.5 4 b / 0.18/0.8 0 b / 0.18/0.7 9 b / 0.27/0.4 9 b / 0.1 9 0.1 5 0.0 1 0.0 0 '0.0 0 0.0 0 S02/MMBt u

ubbituminou s N.A . N.A . N.A . N.A . 0.0 0 0.0 0 0.0 0 0.0 0 0.3 4 0.0 0 0. 7 Pound s

Bituminou s 0.7 5 1.0 1 1.0 0 0.9 7 0.4 0 0.2 S 0.2 2 0.1 3 0.2 1 0.2 1 S02/MMBt u

Subbituminou s N.A . N.A . N.A . N.A . 0 . 1 4 0.1 4 0.1 4 0.1 4 0.4 8 0.14 .

a / Thes e incrementa l cost s appl yonl yt o coal s supplie d byU.S . producer s i n th e lowe r 4 8 states . Th e potentia l competitivenes s o f importe d coal s ha s no t bee n include d i n thes e cos t estimates . b / Tw o cos t estimate s ar e provided . Th e lowe r cos t estimat e refer s t o Centra l Appalachia n coals ; th e highe r cos t estimate s refe r t o Wester n coal s i n Region s 1- 3 an d Alabam a coa l i n Regio n 4 . Bot hestimate s ar e provide d becaus e th e abilit yo f Centra l Appalachia n producer s t o suppl y0. 8 poun d coal s i s ver ylimited .

269 :P. 4

TABL E 2 ADJUSTMENT S T O INDUSTRIA LPRICE S T O ESTIMAT E ELECTRI C UTILIT YPRICE S
Regio n Coa l Typ e Adjustmen t Facto r

5 Bituminou s LowSulfu r 0.7 2 Bituminou s Low-Mediu mSulfu r 0.7 7 Bituminou s Mediu

mSulfu r 0.7 8 Bituminou s High-Mediu mSulfu r 0.7 9 Bituminou s HighSulfu r 0.7 7 H Bituminou s VeryHighSulfu r 0.7 6 Subbituminou s LowSulfu r 0.6 0 Subbituminou s Low-Mediu mSulfu r 0.6 0 Subbituminou s Mediu mSulfu r 0.6 0 Bituminou s Lo wSulfu r 0.7 1 Bituminou s Low-Mediu mSulfu r 0.7 1 Bituminou s Mediu

mSulfu r 0.7 4 Bituminou s High-Mediu mSulfu r 0.7 3 Bituminou s HighSulfu r 0.7 2 H Bituminou s VeryHighSulfu r 0.7 2 V Subbituminou s LowSulfu r 0.65 ' ^ Subbituminou s Low-Mediu mSulfu r 0.6 4 t
- Subbituminou s Mediu mSulfu r 0.66 '

)92 C