Carbon dioxide (CO2) emissions from fossil-fueled power plants contribute to more than one-third of all CO2 emissions in the U.S. [1]. Any effort to curtail greenhouse gases should therefore include the reduction of this emission source. Methods of CO2 reduction include (1) use of alternative fuels with lower CO2 emissions and (2) CO2 scrubbing and sequestration to prevent its release to the atmosphere. The cost of CO2 reduction varies with the selected technology. This paper compares (1) the cost of electricity (COE) without and with CO2 removal/avoidance and (2) the impact of the incremental cost of CO2 reduction on COE for different technology options, including replacing existing coal plants with natural-gas-fired combined cycle (NGCC), integrated gasification combined cycle (IGCC) with and without CO2 removal, pulverized coal (PC) with CO2 scrubber, and nuclear plants. Full and partial compliance with the Kyoto Protocol are addressed.