What is the implication of natural gas supply on geothermal power?
The growth of electrical demand, in the Western States, has been met through the 1990s and early in this decade by the construction and commissioning of combined cycle natural gas powered generators. These facilities meet current federal emission requirements, can be constructed in a short timeframe, and if scaled in the 250 MW size and greater, they cost approximately $850,000 to $900,000 per MW of capacity. However, in comparison to geothermal and wind power, they have higher operating costs due to the purchase price of natural gas. The Energy Information Agency, in a report to Secretary Spencer Abraham, in December 2001 (entitled US Natural Gas Markets: Mid-Term Prospects For Natural Gas Supply), has determined that the reserve/life index of new gas reservoirs has fallen to 3.9 years. Additionally, in order to maintain deliverability at current levels, the rate of well drilling must be maintained. Accordingly, the wellhead price of natural gas must be high enough to generate new act
