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Pennsylvania Electric Company (Pennelec)
Pennsylvania Electric Company and New York State Electric and Gas Corporation (NYSEG), owners of the Homer City steam electric generating station, propose to use SO2 emissions trading as an alternative compliance method with Clean Air Act emissions standards for the two existing units and one new unit at their facility located in Indiana County, Pennsylvania. By using this market-based compliance method, they claim that other environmental benefits will occur (lower SO2, PM10, NOx, VOC, and air toxic emissions) and adverse effects associated with a scrubber (wastewater, limestone mining, and energy consumption) will be avoided. They propose to use emissions trading to meet the SO2 emission limits imposed under New Source Performance Standards (NSPS), State Implementation Plant (SIP) limitations, and the SO2 allowance (acid rain) provisions. In return for regulatory flexibility, the owners will maintain average annual SO2 emission rates at 1995 levels (2.00 lbs. of SO2/MMBtu), rather than taking advantage of the increase allowed for in the regional SO2 attainment plan.