Monday, November 28, 2011

231 Coal Units Announced To Close

Low natural gas prices, old age, and requirements to install modern pollution controls are reasons why more than 30 companies have announced they will close 231 coal units between 2010 and 2022. This information is contained in a list of announced coal plant closings kept by the Edison Electric Institute, the trade association for electricity utilities.

The closings total 48,000 megawatts or 14.1% of the 339,000 megawatts of coal generation capacity. The oldest unit on the EEI list began operations in 1921.

The EEI list does not include oil plants or plants like the one in Indianapolis that are switching from coal to gas to make steam to serve large downtown consumers.

Coal Fleet Announcements

Following is a summary of announced retirements of coal plants under which approximately 48,000 MW of generation (or 14.1% of the 339 GW of total coal-fired generation in 2010) will be retired between 2010 and 2022.[1]  Some units will be replaced with natural gas generation.[2]

Company
Total MW

State

Year(s) Built
Year(s) Will Retire

Units Retiring/Notes
AEP[i]
6,664
Various
1944-1980
2012-2014
27 units in 6 states (OH, WV, VA, IN, KY, TX)
AES
188
NY
1951, 1953
2011
2 units
Alliant
522
IA
1921-1968
2010
15 units 
Ameren[ii]
1,277
MO, IL
1953-1961
2011, 2022
7 units
634
AZ
1963, ‘64
2015
3 units (Four Corners)
Black Hills
44
CO
1955, ‘59
2013
2 units
Consumers
971
MI
1952-1958
2017
7 units
Dominion[iv]
2,515
various
1952-1992
2013-2022
17 units in 3 states (MA, IN, VA)
DTE[v]
169
MI, CA
1952, ’87, ‘89
2010-2011
4 units
Duke[vi]
4,012
various
1940-1969
2011-2018
34 units in 4 states (NC, SC, IN, OH)
Dynegy
489
IL
1953-1959
2011-2013
4 units
Edison Int’l[vii]
371
IL
1955
2010
2 units
Empire District
88

1950, 1954
2018
2 units
1,187
TX
1974-1975
2012
2 units (Luminant)
Exelon
895
PA
1954, 1960
2011-2012
3 units
First Energy[ix]
2,004
OH
1950-1968
2010-2012
12 units
GenOn
514
VA
1949-1957
2012
5 units; Potomac River Generating Station
Madison G&E
178
WI
1938-1961
2010-2012
5 units
NiSource[x]
629
IN
1950-1970
2010-2012
6 units
NRG[xi]
440
DE
1951-1970
2010-2013
4 units
NV Energy
342
NV
1965, ’68, ‘76
2016
3 units
OGE
171
OK
1956
2010
1 unit
PGE
601
OR
1980
2020
Will retire Boardman plant 20 years early
PPL
908
KY
1953-1969
2015
6 units (LG&E and KU)
Progress[xii]
2,532
NC, FL
1951-1972
2011-2020
13 units
Southern[xiii]
10,379
GA
1963-1967
2011-2013
5 units
TransAlta[xiv]
1,460
WA
1971
2019-2024
2 units (Centralia)
TVA[xv]
4,775
various
1952-1965
2012-2117
25 units in 3 states (TN, AL, KY)
WE Energies
112
MI
1964, 1966
2010
2 units
Xcel Energy[xvi]
1,430
CO, MN
1951-1968
2010-2022
12 units
Others
1,944
various
1943o-2004
2010-2022


48,442






[i] As part of its plan for complying with EPA regulations (released 6/09/11), AEP announced that it would be retiring 6,000 MW of coal-fired generation—some of which will be replaced with natural gas units—belonging to the following AEP subsidiaries:  Kentucky Power, Indiana Michigan Power, Southwestern Electric Power, Ohio Power, Columbus Southern and Appalachian Power .  Some of the plant retirements are part of a settlement agreement with EPA.
[ii] Ameren, in Feb. 2011 IRP filing in MO, indicated it would likely close Meramec 1-4 due to the cost of meeting pending EPA regulations.
[iii] As part of a complaint settlement with EPA in November 2010, APS agreed to retire 3 units and purchase and retrofit 2 others at the Four Corners plant.  The agreement will lead to the following reductions:  plant capacity by 560 MW; NOx emissions by 36%; mercury emissions by 61%; particulate matter by 43%; CO2 emissions by 30%; SO2 emissions by 24%.  It will also allow plant to remain compliant with state and federal environmental standards and reduce the carbon footprint in the region.  Buying the 2 units for $294 million was “substantially less” than the other alternatives and saves customers “nearly $500 million over the next best alternative”
[iv] Dominion is retiring 17 units due in part to cost of complying with the pending EPA regs (Salem Harbor, State Line, Chesapeake, Yorktown); 4 units are being retired due to low natural gas prices; 3 units (Altavista, Hopewell, and Southhampton) are being converted to biomass and 2 to natural gas (Bremo Bluff, Yorktown).  Some of these closures were included in a September 1, 2011, IRP filing.
[v] DTE Energy Services has agreed to covert 2 coal-fired facilities to biomass—the Port of Stockton Energy Facility and the Mount Poso Cogeneration Plant (co-owned with Red Hawk Energy)
[vi] The Beckjord 6 unit, which is co-owned with AEP subsidiaries Columbus Southern and Dayton Power & Light, is included in the Duke total.  As part of its overall coal-fleet transition strategy, Duke announced an agreement in 2008 to retire 800 MW of coal-fired power in exchange for building new 825 MW clean coal facility at Cliffside.  It is not clear which plant retirements relate to this announcement, with the exception of Cliffside 1-4.  Duke also agreed to make the new facility carbon neutral by 2018 by offsetting approximately 5½ million tons of CO2/year) through the following means:  depending more on nuclear power, further reducing power generated by coal-burning units, and using energy efficiency programs, carbon free tariffs and other “mitigation projects.”  Duke’s permit for the new plant allows cost recovery.  The new unit will: remove 99% of SO2, 90% of NOx emissions and cut mercury emissions by 50%; be built to accommodate installation and operation of carbon control technologies; significantly minimize thermal impacts to the local river; and, generate wall board quality gypsum from the wet scrubber  
[vii] Edison International is closing the Will County units as part of mercury agreement with IL, and has also agreed to install SO2 and NOx controls on all Midwest Gen plants.
[viii] Energy Future Holdings Corp. subsidiary Luminant announced on September 12, 2011 that it would idle 2 units to comply with CSAPR.
[ix] In August 2010, FirstEnergy announced that it would retire all or part of 2 coal-fired peaking plants (Lake Shore and Ashtabula)—and reduce operations at 2 other plants (Bay Shore and Eastlake)—due to decreased demand, plant age, etc.  The units comprised 7% of total production in 2009.  FE is retiring 2 other units (R.E. Burger) under a consent decree with EPA
[x] Retirement of Dean Mitchell units is part of a consent decree w/ EPA
[xi] NRG retired Somerset Station 1 (74 MW, 1951 [2010]);
[xii] As part of its overall coal-fleet transition strategy, Progress announced an agreement in December 2009 to retire 30% of its NC fleet (11 plants or approximately 1,500 MW of total capacity), replace some with natural gas plants, build new 950-MW natural gas plant at H.F. Lee plant site and build additional new 600-MW natural gas plant at Sutton Plant to replace coal generation being retired in order to maintain reliability. Progress’ remaining NC plants are scrubbed (spent $2 billion installing state-of-the-art control on remaining coal generation). The retirement of 2 units in FL (Crystal River 1 & 2) depends on getting approval to move forward with a new nuclear plant. 
[xiii] Southern (Georgia Power) is retiring the plants due primarily to the cost of complying with pending EPA regs. Southern has announced plans to convert the Mitchell plant to biomass (currently on hold), and that it may also retire Yates 6 & 7 (355 MW each, 1974) plants.  On August 4, 2011, Southern filed comments that it expects to retire 4,000 MW of coal-fired generation—and repower approximately 4,700 MW of coal and oil-fired generation to natural gas and other fuels—as a result of compliance with the pending EPA regs, but has not specified which plants would be affected.
[xiv] Under agreement with state, TransAlta will install SNCRs on the units in 2013, invest $55 million on energy efficiency and clean energy technology development, and be allowed to sell power in-state from the plants under long-term contracts until they close.
[xv] As part of settlement agreement with EPA (04/14/2011), TVA agreed to retire or idle the following coal plants: Johnsonville 1-10, John Sevier 3-4 and Widows Creek 1-6.  In addition, TVA has agreed to spend $3-$5 billion in additional pollution control equipment for its remaining coal plants and $350 million on air pollution reduction and energy efficiency projects, as well as pay a $10 million civil penalty.  Separately, TVA announced on 8/24/10 it would retire Shawnee 10 and John Sevier 1 & 2.
[xvi] In 2010, Xcel Energy announced a plan to reduce the NOx emissions of its Colorado fleet, in response to state law that required the company to meet anticipated federal clean air regulations.  Xcel Energy will invest $1 billion to retire or switch to natural gas approximately 900 MW of coal-fired generation. In addition, the company will install modern emissions controls for 950 MW of coal-fired generation.  In Minnesota, the company plans to retire 270 MW at Black Dog.  To date, the company has reduced regulated emissions on average 40% from 2005 levels.


[1] Retirements are taking place for a variety of reasons, including plant age, fuel prices (i.e., low natural gas prices), decreased demand, consent decrees and the settlement of EPA complaints, the projected cost of complying with the pending EPA regulations, etc.  Because some plant closure details and/or plans for replacement generation have not been finalized, it is not possible to determine the exact number of closures, the mix and quantity of generation replacing the retiring coal units, or the exact amount of emissions reductions.
[2] To the degree that retiring coal plants are replaced with natural gas generation, mercury and SO2 emissions will be virtually eliminated and CO2 emissions reduced by almost half at those units.
[3] As part of its plan for complying with EPA regulations (released 6/09/11), AEP announced that it would be retiring 6,000 MW of coal-fired generation—some of which will be replaced with natural gas units—belonging to the following AEP subsidiaries:  Kentucky Power, Indiana Michigan Power, Southwestern Electric Power, Ohio Power, Columbus Southern and Appalachian Power .  Some of the plant retirements are part of a settlement agreement with EPA.
[4] Ameren, in Feb. 2011 IRP filing in MO, indicated it would likely close Meramec 1-4 due to the cost of meeting pending EPA regulations.
[5] As part of a complaint settlement with EPA in November 2010, APS agreed to retire 3 units and purchase and retrofit 2 others at the Four Corners plant.  The agreement will lead to the following reductions:  plant capacity by 560 MW; NOx emissions by 36%; mercury emissions by 61%; particulate matter by 43%; CO2 emissions by 30%; SO2 emissions by 24%.  It will also allow plant to remain compliant with state and federal environmental standards and reduce the carbon footprint in the region.  Buying the 2 units for $294 million was “substantially less” than the other alternatives and saves customers “nearly $500 million over the next best alternative”
[6] Dominion is retiring 17 units due in part to cost of complying with the pending EPA regs (Salem Harbor, State Line, Chesapeake, Yorktown); 4 units are being retired due to low natural gas prices; 3 units (Altavista, Hopewell, and Southhampton) are being converted to biomass and 2 to natural gas (Bremo Bluff, Yorktown).  Some of these closures were included in a September 1, 2011, IRP filing.
[7] DTE Energy Services has agreed to covert 2 coal-fired facilities to biomass—the Port of Stockton Energy Facility and the Mount Poso Cogeneration Plant (co-owned with Red Hawk Energy)
[8] The Beckjord 6 unit, which is co-owned with AEP subsidiaries Columbus Southern and Dayton Power & Light, is included in the Duke total.  As part of its overall coal-fleet transition strategy, Duke announced an agreement in 2008 to retire 800 MW of coal-fired power in exchange for building new 825 MW clean coal facility at Cliffside.  It is not clear which plant retirements relate to this announcement, with the exception of Cliffside 1-4.  Duke also agreed to make the new facility carbon neutral by 2018 by offsetting approximately 5½ million tons of CO2/year) through the following means:  depending more on nuclear power, further reducing power generated by coal-burning units, and using energy efficiency programs, carbon free tariffs and other “mitigation projects.”  Duke’s permit for the new plant allows cost recovery.  The new unit will: remove 99% of SO2, 90% of NOx emissions and cut mercury emissions by 50%; be built to accommodate installation and operation of carbon control technologies; significantly minimize thermal impacts to the local river; and, generate wall board quality gypsum from the wet scrubber  
[9] Edison International is closing the Will County units as part of mercury agreement with IL, and has also agreed to install SO2 and NOx controls on all Midwest Gen plants.
[10] Energy Future Holdings Corp. subsidiary Luminant announced on September 12, 2011 that it would idle 2 units to comply with CSAPR.
[11] In August 2010, FirstEnergy announced that it would retire all or part of 2 coal-fired peaking plants (Lake Shore and Ashtabula)—and reduce operations at 2 other plants (Bay Shore and Eastlake)—due to decreased demand, plant age, etc.  The units comprised 7% of total production in 2009.  FE is retiring 2 other units (R.E. Burger) under a consent decree with EPA
[12] Retirement of Dean Mitchell units is part of a consent decree w/ EPA
[13] NRG retired Somerset Station 1 (74 MW, 1951 [2010]);
[14] As part of its overall coal-fleet transition strategy, Progress announced an agreement in December 2009 to retire 30% of its NC fleet (11 plants or approximately 1,500 MW of total capacity), replace some with natural gas plants, build new 950-MW natural gas plant at H.F. Lee plant site and build additional new 600-MW natural gas plant at Sutton Plant to replace coal generation being retired in order to maintain reliability. Progress’ remaining NC plants are scrubbed (spent $2 billion installing state-of-the-art control on remaining coal generation). The retirement of 2 units in FL (Crystal River 1 & 2) depends on getting approval to move forward with a new nuclear plant
[15] Southern (Georgia Power) is retiring the plants due primarily to the cost of complying with pending EPA regs. Southern has announced plans to convert the Mitchell plant to biomass (currently on hold), and that it may also retire Yates 6 & 7 (355 MW each, 1974) plants.  On August 4, 2011, Southern filed comments that it expects to retire 4,000 MW of coal-fired generation—and repower approximately 4,700 MW of coal and oil-fired generation to natural gas and other fuels—as a result of compliance with the pending EPA regs, but has not specified which plants would be affected.
[16] Under agreement with state, TransAlta will install SNCRs on the units in 2013, invest $55 million on energy efficiency and clean energy technology development, and be allowed to sell power in-state from the plants under long-term contracts until they close.
[17] As part of settlement agreement with EPA (04/14/2011), TVA agreed to retire or idle the following coal plants: Johnsonville 1-10, John Sevier 3-4 and Widows Creek 1-6.  In addition, TVA has agreed to spend $3-$5 billion in additional pollution control equipment for its remaining coal plants and $350 million on air pollution reduction and energy efficiency projects, as well as pay a $10 million civil penalty.  Separately, TVA announced on 8/24/10 it would retire Shawnee 10 and John Sevier 1 & 2.
[18] In 2010, Xcel Energy announced a plan to reduce the NOx emissions of its Colorado fleet, in response to state law that required the company to meet anticipated federal clean air regulations.  Xcel Energy will invest $1 billion to retire or switch to natural gas approximately 900 MW of coal-fired generation. In addition, the company will install modern emissions controls for 950 MW of coal-fired generation.  In Minnesota, the company plans to retire 270 MW at Black Dog.  To date, the company has reduced regulated emissions on average 40% from 2005 levels.

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