Ventyx(R) Releases Electric Power Horizons Study

  Scenarios Show Greenhouse Gas Emissions Limits Could Close 25 Percent of

 U.S. Power Plants by 2015; Third-Generation Nuclear Power Required to Meet

                                   Demand



    ATLANTA, Aug. 18 /EMWNews/ -- Ventyx(R), the world's largest private

software and services provider to the energy and utility industry, today

released Electric Power Horizons, a scenario-based analysis of plausible

energy futures to the year 2032. The detailed study investigates renewable

generation, third-generation nuclear energy, natural gas supply and

greenhouse gas (GHG) regulations and analyzes their predicted effects on

America's future energy security.



    



    The scenarios outlined in the study address many of the primary

concerns identified by energy and utility industry executives in a recent

Ventyx workshop-including uncertainty surrounding GHG legislation and its

effect on prices, the impacts of economics and energy efficiency

initiatives on demand, the potential for increasing renewable resources and

future constraints on resource supply.



    Among the study's comprehensive and detailed findings are the

following:



    -- Moderate CO2 taxes will not curb GHG emissions. A moderate CO2

federal tax (less than $25 per ton by 2032 in 2008 dollars) on all tons of

power sector CO2 emissions would collect nearly $1.9 trillion in tax

revenue over the study period and raise customer bills 13 percent by 2032.

However, by 2032 CO2 emissions would still increase nearly 60 percent, and

gas usage would more than double. This could significantly increase U.S.

dependence on imported liquefied natural gas (LNG).



    -- CO2 reduction requires increased use of nuclear and renewables and

decreased use of coal. Projecting a path to reach a stringent 70-percent

CO2 reduction from 2005 levels by 2050 would require increasing U.S.

nuclear capacity by more than 60 percent, call for the retirement of more

than 170 GW of coal and necessitate the addition of more than 45 GW of

solar resources by 2032. This scenario also assumes a long economic

slowdown followed by a slow recovery which aids in limiting CO2 emissions.



    -- GHG regulations may kill coal. Participation in G8+5 GHG emissions

limits requires the closure of nearly one-fourth of U.S. coal plants by

2015 with the remaining fleet operating at a much lower output level. The

U.S. may be the Saudi Arabia of coal, but greenhouse gas regulations may

negate coal as a viable fuel source.



    -- Renewable energy has an uncertain future. Geothermal, wind and solar

are strong candidates for the future; however, questions remain as to

whether renewable energy will fulfill its potential and the transmission

infrastructure investment will nearly triple current levels to move wind to

load centers. Aligning our political and economic objectives with our

energy reality is a key to making renewable energy sustainable.



    For more information on the Electric Power Horizons study, contact

Ventyx at +1-800-868-0497 or visit our Website:

http://www1.ventyx.com/advisory/strategy-advisor.asp . Ventyx will be

hosting a Webcast on September 25, 2008, at 1 p.m. (Eastern) to discuss the

results of the study and to gather input on future Electric Power Horizons

reports. Visit the following Website to register for this informative

Webcast: http://tinyurl.com/5d9kqd .

    About Electric Power Horizons



    Ventyx's Electric Power Horizons' annual Scenario Planning Retainer

Service offers energy sector participants a rigorous framework to extend

thinking beyond current issues and organization biases to identify

potential future market dislocations and strategic blind spots. It is a

perfect supplement to the North American Power and Gas Advisory Service,

Ventyx's semiannual, 25-year power and fuel price forecast and market

outlook.



    "Electric Power Horizons takes scenario planning to the next level with

actionable insights, leading to better strategic assessment by quantifying

the impacts and risks of energy policies across alternative plausible

business environments," said Senior Vice President of Ventyx Energy

Advisors Doug Buresh. "Ventyx, with input from utility, natural gas, coal,

academic, financial and rating agency clients, has developed four powerful

and equally plausible scenarios and captured them in Electric Power

Horizons."



    The scenarios include the following:



    -- Global Turmoil -- Disruptions in gas supply lead to global

stagnation and a U.S. recession, which is followed by sustained low

economic growth where energy independence away from Middle East oil and LNG

imports are critical.



    -- Technology Evolution-Undeniable evidence of global warming leads to

regulation to reduce CO2 and a societal shift to greater energy

conservation and "zero emission" supply-side technologies.



    -- Global Economy -- The shift of industrial U.S. load to the service

industries and a policy of global consolidation drive the U.S. to forge an

alliance with the G8+5 to stabilize global economy inflationary pressures

and wealth disparity.



    -- Return to Reliability -- Growing concern of electricity reliability

due to brownouts and increased outages drives a lack in consumer

confidence. The Electric Reliability Organization (ERO) recognizes the

shortfall of the aging transmission infrastructure and leads to further

consolidation of planning areas, as well as a buildup of transmission

infrastructure and reserve standards.



    Buresh added, "Electric Power Horizons takes a fundamental market view

that incorporates the physical characteristics and market volatility as it

affects the operation of power plants. By offering multiple independent

views of the future, scenarios are essential to stretch our strategic

thinking and challenge conventional wisdom."



    About Ventyx



    Ventyx is a leading business solutions provider, delivering asset

management, mobile workforce management, customer care, energy trading and

risk management, energy operations, and energy analytics solutions to more

than 900 energy, utility and communications customers, as well as to asset-

intensive customers in selected commercial markets. With approximately

1,200 employees in more than 20 locations worldwide, Ventyx delivers

best-of-breed business solutions that maximize operational and financial

performance, backed by the industry's deepest available industry-specific

domain expertise. For more information, visit our Website at http://www.ventyx.com

.



    Ventyx is a registered trademark of Ventyx Inc. Other company and

product names may be trademarks of the respective companies with which they

are associated.