How the EPA's Forecast Understates the Impact of Its Proposed Rule

EPA's forecast is built on a foundation of five optimistic assumptions. More balanced assumptions would have predicted greater power generation generally and a much heavier reliance on combined cycle. And it would have called for states and the industry to substantially upgrade the nation's gas infrastructure. The rule may still be cost-beneficial, even after EPA improves its impact forecast, but a credible forecast would better prepare the country for the challenges ahead.