Relevant and Non-Relevant Costs

atomic number 16 Carolina Electric and Gas (SCE&G), a principal supplementary of SCANA Corporation, makes life convenient by bringing electricity and natural waste to homes and businesses. The come with also provides residential, commercial, and industrial builder service firms the energy they subscribe to for construction (www.sceg.com). The company also has telecommunications services and other businesses which involve non-regulated energy. To fork over electricity and natural gas, SCE&G operates 22 various plants, most of which argon coal plants. Today, SCE&G serves nearly 1 one thousand one million million million customers in South Carolina (SCE&G Quick Facts).The coal plants of SCE&G emit nitrogen oxide. as well known as nighttime, this is one of the compounds that form smog in the atmosphere. Thus, the company has been making efforts to lower the emission of nighttime. Just recently, SCE&G has installed the selective catalytic reduction (SCR) equipment on Wateree Stat ion and Williams Station, the two largest plants of the company to reduce NOx emission. This has cost them $138 million (www.sceg.com). The company has also invested 80 million dollars on equipment for emission and pollution control (Zaleski, 2007).In 2008, the firm has decided to install the SCR equipment on the sleep with Station as well. The project, which started on the summer of 2007 and will land up on the fall of 2008, will cost the company 69 million dollars (Zaleski, 2007). This amount includes relevant costs (i.e., costs that are significant 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 projectthe investment on SCR equipment and on the emission and pollution control equipmentare considered sunk costs. Whether SCE&G would pull through with the Cope project or not, the costs of these equipments have already been incurred. Hence, they are irrelevant to the project.SCE&G reported in its statement of project expenditure that the budget for the Cope Station project was $ 26 million (SCANA Corp. 2007-2009 Projection Expenditure, 2007). Since the investment would cost $ 69 million, it would result in a budget deficit of $ 43 million. This implies that the company had to make budget adjustments in order to fund the said 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 distinct financial benefits, by making the plant environment-friendly, the project can only contribute to the healthy relationship of SCE&G with its neighboring communities. Moreover, this may inveigle new industries to invest in the area 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.). Retriev ed January 26, 2008 from http//www.sceg.com/en/builder servicesNitrogen oxides. (n.d.). Retrieved January 26, 2008 fromhttp//www.sceg.com/en/my-community/environment/air/nitrogen-oxides/Residential services. (n.d.). Retrieved January 26, 2008 fromhttp//www.sceg.com/en/residential-services/SCANA Corporation 2007-2009 projections for capital 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