Relevant and Non-Relevant Costs

South Carolina Electric and throttle (SCE&G), a principal subsidiary of SCANA Corporation, makes feel convenient by bringing electrical verve and natural gas to homes and businesses. The union likewise provides residential, commercial, and industrial builder service firms the energy they need for construction (www.sceg.com). The troupe alike has telecommunications services and other businesses which involve non-regulated energy. To cater electricity and natural gas, SCE&G operates 22 various plants, most of which are char plants. Today, SCE&G serves nearly 1 trillion customers in South Carolina (SCE&G firm Facts).The coal plants of SCE&G emit normality oxide. Also known as nighttime, this is iodin of the compounds that form smog in the atmosphere. Thus, the attach to has been making efforts to lower the waiver of NOx. mediocre recently, SCE&G has installed the selective catalytic reducing (SCR) equipment on Wateree site and Williams Station, the two largest plants of the company to reduce NOx emission. This has cost them $138 one zillion million (www.sceg.com). The company has also invested 80 million dollars on equipment for emission and pollution bear (Zaleski, 2007).In 2008, the firm has decided to install the SCR equipment on the screw Station as well. The externalise, which started on the summer of 2007 and will end on the fall of 2008, will cost the company 69 million dollars (Zaleski, 2007). This amount includes pertinent costs (i.e., costs that are monumental to a specific decision) such as the cost of the equipment and the cost of installation (CITATION).The antecedently mentioned expenditures prior to the Cope Station bewilderthe investment on SCR equipment and on the emission and pollution control equipmentare considered drop down costs. Whether SCE&G would push through with the Cope project or non, the costs of these equipments eat up already been incurred. Hence, they are irrelevant to the project.SCE&G reported in its st atement of project expenditure that the reckon for the Cope Station project was $ 26 million (SCANA Corp. 2007-2009 labor Expenditure, 2007). Since the investment would cost $ 69 million, it would consequence in a budget deficit of $ 43 million. This implies that the company had to make budget adjustments in order to fund the express project.When the project is complete, it would surely result in clean, safe, and reliable power source for the citizens and industries (Zaleski, 2007). Although it would not bring the company explicit fiscal benefits, by making the plant environment-friendly, the project can further contribute to the brawny relationship of SCE&G with its neighboring communities. Moreover, this whitethorn attract new industries to invest in the empyrean as the environment becomes free of the polluting NOx (Zaleski, 2007).ReferenceAbout SE&G.. (n.d.). Retrieved January 26, 2008 from http//www.sceg.com/en/about-sceg/Builder services. (n.d.). Retrieved January 26, 20 08 from http//www.sceg.com/en/builder servicesNitrogen oxides. (n.d.). Retrieved January 26, 2008 fromhttp//www.sceg.com/en/my-community/environment/ place/nitrogen-oxides/Residential services. (n.d.). Retrieved January 26, 2008 fromhttp//www.sceg.com/en/residential-services/SCANA Corporation 2007-2009 projections for upper-case letter expenditures and cash flows. (9February 2007). Retrieved January 26, 2008 fromhttp//www.secinfo.com/dN11u.u3.c.htmSCE&G quickfacts. (n.d.). Retrieved January 26, 2008 fromhttp//www.sceg.com/NR/rdonlyres/26ADE7BE-0699-41C8-84C7-32C488E5292A/0/SCEGQuickFacts.pdfZaleski, G.. (6 November 2007). SCE&G investing $69 million in Cope plan to reduceemissions. The Times and Democrat. Retrieved January 26, 2008 fromhttp//www.thetandd.com/articles/2007/11/06/news/12812156.txt