Production costing strategy for optimal SO2 compliance using Monte Carlo simulation

One of the main goals of electric utilities is to meet the required load demand in the most cost effective manner. With the continuing emphasis on environmental factors and the addition of the Clean Air Act Amendments of November 1990, cost effective solutions must now be subject to environmental considerations. This paper describes a simple framework which uses the Monte Carlo method to develop an economic and emissions based objective function for use in a production cost model. A computer program has been developed to implement this method on a DEC 3100 workstation. System studies are performed to illustrate the technique.