This report describes a 3Party Covenant financing and regulatory proposal (3Party Covenant) aimed at reducing financing costs and providing a technology risk tolerant investment structure to stimulate initial deployment of 3,500 MW of Integrated Gasification Combined Cycle (IGCC) coal generation power plants in this decade. The 3Party Covenant is an arrangement between the federal government, state utility commission, and equity investor that serves to lower IGCC cost of capital by reducing the cost of debt, raising the debt/equity ratio, minimizing construction financing costs, and allocating financial risk.

© 2009 Fred H. Hutchison  (www.clean-energy.us)