OFR-58-88 The Potential Impact Of Acid Rain Legislation On The Domestic Aluminum Smelting Industry

In this report estimates are presented of the impact of the passage of five recently proposed "acid rain" bills on electric utility costs for coal-burning utilities servicing the domestic aluminum smelting industry, and on the costs of production for affected aluminum smelters. As aluminum smelting is an energy-intensive industry, domestic increases in electricity prices could affect the industry's competitiveness. Energy costs in U.S. aluminum smelting are compared to aluminum smelting energy costs in the rest-of-the-world. Governmental policies affecting these energy costs are discussed.