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FAIRFAX, VA, March 6, 2000 - ICF
Consulting states that the 2000 U.S. Environmental Protection
Agency's SO2 allowance auction on Monday, March
27th, represents an opportunity to buy SO2 allowances
at prices below market fundamentals.
"On the eve of the SO2 allowance auction, allowance
prices sit well below levels supported by market fundamentals,"
states John Blaney, Senior Vice President of ICF Consulting's
electric/environmental practice. "We strongly believe that
if the auction bids come in at current market prices, then
market participants would be wise to buy allowances to hold
for the future."
ICF Consulting's SO2 Market
Outlook 2000 Projects Strong Price Increases in the Near
to Midterm
The study, to be released at the end of March
2000, projects allowance prices above current levels and climbing
as the Phase I bank of allowances is drawn down. Blaney stated,
"Even accounting for the huge regulatory uncertainty surrounding
New Source Review, national ambient air quality standards,
and Climate Change, we find that SO2 prices are
simply too low." Blaney continues, "ICF Consulting issued
a buy recommendation in 1996, when SO2 allowances
prices were $75 per ton, and we issue a buy recommendation
today. Participants who miss this opportunity will, in the
near future, look back and wish they had an understanding
of the engineering/economic market fundamentals."
ICF Consulting's SO2 Market Outlook analyzes
the impacts of a range of uncertainties surrounding potential
regulations and economic outcomes.
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ICF International (Nasdaq: ICFI) partners with government and commercial clients to deliver consulting services and technology solutions in the energy, environment, transportation, social programs, defense, and homeland security markets. The firm combines passion for its work with industry expertise and innovative analytics to produce compelling results throughout the entire program life cycle, from analysis and design through implementation and improvement. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. More than 1,800 employees serve these clients worldwide. ICF’s Web site is http://www.icfi.com.
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For Immediate Release
Contact: Douglas Beck
1.703.934.3820
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