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Oklahoma Gas & Electric Muskogee Generating Station Best ...

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<strong>Oklahoma</strong> <strong>Gas</strong> & <strong>Electric</strong><br />

<strong>Muskogee</strong> <strong>Generating</strong> <strong>Station</strong> – BART Determination<br />

May 28, 2008<br />

(1) costs of compliance;<br />

(2) energy impacts; and<br />

(3) non-air quality environmental impacts.<br />

Costs of Compliance<br />

The economic analysis performed as part of the BART determination examines the costeffectiveness<br />

of each control technology, on a dollar per ton of pollutant removed basis.<br />

Annual emissions using a particular control device are subtracted from baseline emissions<br />

to calculate tons of pollutant controlled per year. Annual costs are calculated by adding<br />

annual operation and maintenance costs to the annualized capital cost of an option. Cost<br />

effectiveness ($/ton) of an option is simply the annual cost ($/yr) divided by the annual<br />

pollution controlled (ton/yr).<br />

In addition to the cost effectiveness relative to the base case, the incremental costeffectiveness<br />

to go from one level of control to the next more stringent level of control may<br />

also be calculated to evaluate the cost effectiveness of the more stringent control.<br />

Energy Impact Analysis<br />

The energy requirements of a control technology should be examined to determine whether<br />

the use of that technology results in any significant or unusual energy penalties or benefits.<br />

Two forms of energy impacts associated with a control option can normally be quantified.<br />

First, increases in energy consumption resulting from increased heat rate may be shown as<br />

total Btu’s or fuel consumed per year or as Btu’s per ton of pollutant controlled. Second,<br />

the installation of a particular control option may reduce the output and/or reliability of<br />

equipment. This reduction would result in decreased electricity available to the power grid<br />

and/or increased fuel consumption due to use of less efficient electrical and steam<br />

generation methods.<br />

Non-Air Quality Environmental Impact Analysis<br />

The primary purpose of the environmental impact analysis is to assess collateral<br />

environmental impacts due to control of the regulated pollutant in question. Environmental<br />

impacts may include solid or hazardous waste generation, discharges of polluted water<br />

from a control device, increased water consumption, and land use impacts from waste<br />

disposal.<br />

7

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