Innovest, an influential international financial adviser group, released a report Tuesday that analyzed the risks and benefits of Sunflower Electric Power Corp.â€™s proposed coal-fired power plant expansion near Holcomb. It found that while the Sunflower expansion would provide additional baseload capacity, “the carbon risks associated with an increased reliance on coal present significant financial risks for the companyâ€™s owners and ratepayers.” What kind of risks? Assuming carbon regulation costs based on prevailing market rates of between $21 and $48 per ton, the Holcomb plant could cost Sunflower ratepayers “between $22.4 million and $51.36 million annually,” the study found. The analysis concludes that “Sunflower has failed to account for likely regulatory scenarios, and will therefore expose its ratepayers to the significant financial exposure associated with a strategic focus on developing new coal capacity.”
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