Research And Markets Research And Markets

How Cap-And-Trade Will Affect U.S. Power Markets And Merchant Generators' Profitability Sep 09

  • ID: 1787852
  • September 2009
  • Region: United States
  • Standard & Poors
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  • Allegheny Generating Co.
  • Calpine CCFC Holdings LLC
  • Dynegy Holdings LLC
  • GenOn REMA LLC
  • Old Dominion Elec Coop
  • Southern Power Co.
  • MORE

The economic impact of carbon cap-and-trade legislation similar to the American Clean Energy And Security Act of 2009 passed by the House of Representatives could indeed be very substantial. Several dynamics will determine the pricing of carbon credits and we discuss some of these below. Standard & Poor's Ratings Services has also estimated the economic cost of compliance for companies as the change in EBITDA that a power plant (or portfolio of plants) earns under a base case with no carbon controls versus that under a stringent greenhouse gas (GHG) scenario. To come up with our estimates, and to identify aspects of the power markets that drive compliance costs, we used an hourly dispatch model of the U.S. power markets,...

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

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- Basin Elec Pwr Coop
- Oglethorpe Pwr Corp
- Buckeye Pwr Inc
- Tri-State Generation & Transmission Assn
- Associated Elec Coop Inc
- Old Dominion Elec Coop
- Square Butte Elec Coop
- Tennessee Vy Auth
- Covanta Energy LLC
- Energy Future Holdings Corp.
- San Miguel Electric Cooperative Inc.
- Energy Future Competitive Holdings Co.
- Potomac Capital Investment Corp.
- Allegheny Generating Co.
- Edison Mission Energy
- Cogentrix Energy Inc.
- Wheelabrator Technologies Inc.
- The AES Corp.
- Calpine Corp.
- Salton Sea Funding Corp.
- Dynegy Holdings LLC
- NRG Energy Inc.
- Edison Mission Energy Funding Corp.
- Georgia Transmission Corp.
- Centennial Energy Holdings Inc.
- National Grid Generation LLC
- Mirant Americas Energy Marketing L.P.
- GenOn Energy Holdings Inc.
- Constellation Energy Group Inc.
- Dynegy Inc.
- GenOn Americas LLC
- Allegheny Energy Supply Co. LLC
- Orion Power Holdings Inc.
- Illinois Power Generating Co.
- Midwest Generation, LLC
- Covanta ARC LLC
- Edison Mission Marketing & Trading Inc.
- Exelon Generation Co. LLC
- National Energy & Gas Transmission Inc.
- PSEG Power LLC
- RRI Energy Inc.
- Talen Energy Supply LLC
- Southern Power Co.
- Great River Energy
- Calpine Construction Finance Co. L.P.
- Calpine Generating Co. LLC
- Buckeye Pwr Gen LLC
- Thermal North America Inc.
- Iberdrola Renewables Holdings Inc.
- Calpine CCFC Holdings LLC

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