A Utility company is to replace an aging coal-fired power plants. Accordingly, management should develop a comprehensive plan for a resource and thoroughly explore all possible options that is the interest of many stakeholders, including consumers, regulators, environmentalists, and the communities in which the new plant will be built. State regulators require the utility company to minimize costs to taxpayers, but the cost is difficult to determine, given the potential for higher taxes on carbon emissions, and volatile fuel costs over several decades of change. The analysis is complicated by differences in the project risks linked with the different technologies. Senior Vice-President must choose carefully, because he will be required to defend his decision choice before different and passionate stakeholders. Analysis of the capital budget should be conducted that takes into account many uncertainties associated with the problem.
by Gary Clendenen, Paul W. Thurston, Fang Zhao, Steven Kidwell Source: North American Case Research Association (NACRA) 36 pages. Publication Date: January 15, 2010. Prod. #: NA0007-PDF-ENG
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