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CLEAN AIR CAPITAL MARKETS ANNOUNCES FIRST DEAL UNDER NEW CLEAN AIR ACT

 CLEAN AIR CAPITAL MARKETS ANNOUNCES FIRST DEAL
 UNDER NEW CLEAN AIR ACT
 WASHINGTON, May 12 /PRNewswire/ -- Wisconsin Power & Light Company and the Tennessee Valley Authority announced today a transaction to transfer acid rain air rights under the new Clean Air Act.
 The agreement is the first to be made public since the enactment of landmark legislation 18 months ago. That law rejected command and control in favor of free market principles in the implementation of the nation's 50 percent reduction by the year 2000 in SO2 emissions, the precursor of acid rain. Under the 1990 Clean Air Act Amendments, the utility industry is permitted to control emissions in the most cost-effective manner by purchasing and selling SO2 "allowances." If an active market develops, customers of electricity could save billions of dollars without sacrificing environmental goals.
 Acting as financial adviser to WP&L, Clean Air Capital Markets brought WP&L and TVA together and assisted in negotiating the terms and conditions of the 10,000 allowance agreement. CACM is a private, Washington-based investment-banking firm specializing in structuring allowance transactions under the Clean Air Act.
 CACM was founded by John B. Henry II, an environmental entrepreneur, in November 1990 after the passage of the new Clean Air Act. Henry was chief executive officer of Crop Genetics International, a NASDAQ-traded agricultural biotechnology company, from 1981 to 1990. CACM's Vice President Ernest G. Ellingson was formerly an officer of Georgia Power responsible for strategic planning and financial analysis. Andrew D. Weissman, a senior partner of Swidler & Berlin, is CACM's utility counsel.
 "The WP&L/TVA deal is historic," Henry stated. "It sends a clear signal to the utility industry. SO2 allowances can be purchased below the cost of most scrubbers and without the painful disruptions that come from over-reliance on out-of-state fuel switching." CACM estimates that up to $4 billion in savings could be realized in Phase I of the acid rain reduction program if utilities actively buy and sell allowances. Even larger savings could be achieved in Phase II beginning in the year 2000. "We were pleased to help make the market work to provide the American people with cleaner air," Henry stated.
 -0- 5/12/92
 /CONTACT: John Henry of Clean Air Capital Markets, 202-466-0520/ CO: Clean Air Capital Markets ST: District of Columbia, Wisconsin, Tennessee IN: UTI SU:


MH -- DC010 -- 9072 05/12/92 11:19 EDT
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Publication:PR Newswire
Date:May 12, 1992
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