Portland, Maine (Platts)--9Jan2008

Thirty-one coal-fired plants totaling about 24,250 MW were canceled or
delayed in 2007 because of rising construction costs and concerns over
greenhouse gas emissions, according to Resource Media, a public relations firm
representing Western environmental groups.

"Strong public opposition, combined with uncertainty over the future
costs of complying with carbon dioxide emission caps and concerns about global
warming's environmental and economic impacts, forced many utilities to
cancel--or regulators to reject--plants from Florida to Washington," the group
said late Monday.

New regulations in Oregon, Washington and California limiting
greenhouse gas emissions also scuttled proposed plants, Resource Media added.

Anticipated costs for the canceled and delayed plants totaled about $45.3
billion, the group said. The estimate includes Houston-based TXU's agreement
to cancel eight projects totaling about 6,860 MW. It also includes six
integrated gasification combined cycle plants totaling 3,360 MW.

Four projects were canceled in Florida: Tampa Electric's 630-MW IGCC
plant, Florida Power & Light's 1,960-MW Glades plant, the Florida Municipal
Power Agency's 800-MW Taylor Energy Center and Seminole Electric Power
Cooperative's 750-MW Seminole 3 Generating Station.

Increasing capital costs were a key factor in same of the cancellations
and delays, the group said. Resource Media cited a June report by Standard &
Poor's that found capital costs for new generation climbed by more than 50% in
the past three years.

Price escalation may continue with continuing worldwide demand for
building power plants possibly driving capital costs well above $2,500/kW for
supercritical coal plants and approaching $1,000/kW for combined-cycle gas
turbines, according to the S&P report.

S&P, like Platts, is a unit of The McGraw-Hill Companies.