| Abstract: | Municipal and state regulations limiting the allowable sulfur content of fossil fuels are having the effect of changing fuel use patterns of many of the nation’s utilities. The utility companies are faced with increased costs of lower sulfur fuels and capital expenditures associated with the fuel changes, as well as with greater uncertainty concerning long term supplies of suitable fuels. Capital costs for air pollution control are mounting. Electrostatic precipitators must be built to meet more stringent air pollution codes, and stack heights may have to be increased to improve discharge patterns. Other capital expenditures for added requirements such as steam and electric tracing and pumping equipment must be made to accommodate distinctive characteristics of low sulfur fuels. Air pollution control costs do not result in increased productivity, improved products, or products that will command a better price in the market. Nevertheless, the expenditures are essential. Nuclear power is the long range solution to which many utilities look but, in the shorter view, the power industry must expect continued cost increases in the areas of fuel and operating expenses, capital expenditures and research and development. |
