Closing the Mitchell plant in 2028 would save $118 million, it found. Coal country digs in as US Supreme Court weighs EPA climate power AEP subsidiary Kentucky Power converted the Big Sandy power plant near Louisa, Kentucky, from coal to gas a few years ago. Matt Bevin and former President Donald Trump. WV Educational Broadcasting Authority, the WVPB Foundation, and the Friends of WVPB. It is owned and operated by Appalachian Power Company (APCO). Slated retirements to cut US coal fleet to less than half 2015 capacity They also support, directly and indirectly, 6,600 jobs. Meanwhile, power generators are speeding up the exit from coal. John E. Amos Pond Closure - Stantec The West Virginia Public Service Commission must decide in the coming weeks whether to approve an environmental compliance surcharge on electricity customers. Appalachian Power is supposed to report the results of its study before the end of 2022. U.S. Coal Use Has Declined By Half, When Measured By Power Produced It seemed like there was more flooding," he said. The capacity factor of coal plants the percentage of power they produce relative to their maximum output dropped from 62% in 2011 to 40% last year. We continue to work with state agencies to finalize permit terms and conditions.. Shutting down either plant would be hard on the economies of their local communities, not to mention the West Virginia coal industry in general. Closing the Amos plant alone in 2028 could save $1.4 billion, the Sierra Clubs analysis found. The examiner also recommended that if the Virginia SCC did not ultimately grant Appalachian Power approval of the ELG investments, the regulatory body should delay consideration of the reasonableness and prudency of previously incurred ELG costs until a future case., While AEP has made a major effort to pare down its reliance on coal powerkeeping with ambitions it announced in September 2019. Closing the Mitchell plant in 2028 would save $118 million, it found. /marketintelligence/en/news-insights/latest-news-headlines/slated-retirements-to-cut-us-coal-fleet-to-less-than-half-2015-capacity-by-2035-65741012 CreditSights analyst Andrew DeVries said industry observers are expecting an acceleration of coal plant retirements under U.S. President Joe Biden and following the recent "ugly PJM auction" results. It is possible that West Virginia customers could have to cover the costs of the entire retrofits for all three plants, she said. "We just haven't gotten there yet.". Coal-fired plants also produce less power than theyre capable of generating. As part of a deal to secure a rate increase in Virginia, Appalachian Power has agreed to examine what would happen if the John Amos Power Plant in Putnam County and the Mountaineer Power Plant in Mason County were taken out of service ahead of schedule. Both states commissions will consider AEPs proposal later this month. But three West Virginia coal-fired power plants owned by Ohio-based American Electric Power may be on borrowed time. America's Power President and CEO Michelle Bloodworth said the coal-fired power advocate has long warned of the long-term risks the grid faces from the retirements of large baseload plants and the rise of intermittent sources of energy such as wind and solar. AEP has committed to reducing its carbon dioxide emissions and obtaining more of its power from renewable resources while also divesting itself of much of its coal-powered generating fleet. A report published by the National Bureau of Economic Research shows that the John Amos, Mountaineer and Mitchell plants will no longer be economical to operate in five years. Appalachian Power spokesperson Matheney on Wednesday reiterated this point, underscoring the tight timeframe in which new replacement capacity will be needed if Amos and Mountaineer were retried earlier than planned. But in its order on Monday, the SCC said Appalachian Power had failed to meet its burden of proving that the ELG investment is reasonable and prudent, including from an economic or a resource adequacy perspective. Still, the SCC allowed Appalachian Power to provide more analyses and evidence to support the ELG investment. "For Amos and Mountaineer our analysis demonstrates complying with both the CCR and ELG rules and operating both plants through 2040 will be less costly for customers than the next best option,. Videos, activities & resources for every occasion. Jaffe, of the Sierra Club, said she expects that if Kentucky and Virginia deny AEPs request, the company would come back to the commission in West Virginia asking for another surcharge. Cheap, abundant natural gas has been eroding coals share of electric power generation for more than a decade. This week on Inside Appalachia, we speak with an author about grief rituals, a podcaster about the religious music of snake handling churches, and we explore best practices to prepare for retirement. Utilities are rapidly closing coal-fired power plants, and while 2020 and 2021 offer a relative reprieve from retirements compared to 2018 and 2019, utilities already have over 10 GW of announced retirement plans lined up in each of 2022 and 2023. John E. Amos Power Plant is a three-unit coal-fired power plant owned and operated by Appalachian Power. I come from a community where we're seeing massive job losses, massive job losses," said Keena Mullins, co-founder and solar developer for Revolt Energy. that is degrading to another person. A final decision should be coming in the next several weeks. Whats Your Heat Exchanger Maintenance IQ? John Amos Power Plant saves time, money in coal offload process "I have never seen flooding like I've seen here in the past, really in the past 20 years," said longtime environmental activist Maria Gunnoe, whose family has lived and mined in West Virginia for generations. Manchin rails against Biden's clean energy plans as he faces tough Yet these power plants are vulnerable to the same economic forces that have swept through the industry nationwide in the past decade. Appalachian Power moves toward renewables, Mon Power considering more It sold the Gavin plant at Cheshire, Ohio, a few years ago, and it has announced plans to reduce output at its large plant at Rockport, Indiana. But one of the reports authors predicts they wont last to the end of this decade. DTE is currently planning on closing Monroe in 2040, but has said it will study an earlier retirement date as part of its long-term plan submitted to Michigan utility regulators. Coal-fired power plants peaked at 314 gigawatts of electricity in 2011, according to the U.S. Energy Information Administration. The Congressional Budget Office estimates a $25 a ton carbon tax, indexed to inflation, could raise $1 trillion over a decade. The turn away from coal is part of AEPs long-term strategy. We told the Virginia SCC that making the environmental investments for both CCR and ELG compliance at Amos and Mountaineer plants is more beneficial for customers than making only the CCR compliance investments, retiring the plants in 2028, and finding replacement capacity, she said. We will take into consideration the three commission orders and the many impacts of all possible options. In Kentucky, Louisville Gas & Electric and Kentucky Utilities, a PPL subsidiary, plans to close two coal-fired units near Louisville, and a third near Burgin, in Central Kentucky, by 2028. AEPs decision to retrofit Amos and Mountaineer for ELG compliance builds on the 2020 rule, which establishes additional options for reusing and discharging small volumes of bottom ash transport water, provides an exception for retiring units and extends the compliance deadline to a date as soon as possible beginning one year after the rule was published but no later than December 2025, the company said in late July. But in October 2020, the Trump administration, On July 26, meanwhile, the Biden administration, AEPs decision to retrofit Amos and Mountaineer for ELG compliance builds on the 2020 rule, which establishes. The John E. Amos Power Plant is located near Winfield, Putnam County, West Virginia. The turn away from coal is part of AEPs long-term strategy. For example, NRG Energy Inc. announced June 17 that it would retire about 1,600 MW of coal capacity in the PJM Interconnection following the results of the May capacity auction. A report by West Virginia Universitys Bureau of Business and Economic Research. Home Report Predicts 3 Coal Plants Could Close Within 5 Years. Until that rule is finalized, current regulations, including the 2015 and 2020 rules will be implemented and enforced, the EPA said. Wheeling Power and Kentucky Power each hold a 50% stake in the Mitchell Plant, which began operating in 1980. 2 Logan, Walk-off hit by Brumfield sends No. An economic analysis by the Sierra Club comes to a different conclusion: closing the plants could save ratepayers hundreds of millions of dollars. West Virginia Attorney General Patrick Morrisey is leading a group of 18 states suing the Biden administration over the Environmental Protection Agency's authority to regulate greenhouse gas emissions under the Clean Air Act. It retired its Philip Sporn power plant in Mason County and its Kanawha River Power Plant in Kanawha County in 2015. Editorial: Two power plants' future becomes uncertain We are first in your inbox with the most important news in the industry ― keeping you smarter and one-step ahead in this ever-changing and competitive market. Choose wisely! Mitchell and Amos began operating in 1971, and Mountaineer in 1980. Chance of rain 90%.. Appalachian Power, the AEP subsidiary that owns the two plants. Utility customers in West Virginia, Virginia and Kentucky would pay for the cost. The plant burns up to 27,000 tons of coal a day during peak season, drawing on daily shipments of regional coal delivered by barge and by rail. Nominate an Exceptional West Virginia Teacher! Theyve towered over the regions communities for decades. Chance of rain 70%. They're not very efficient at turning coal into power, Holladay said, and new, more efficient technologies coming down the grid and kind of eating their lunch.. Bloodworth said goals such as the Biden administration's aim for a carbon-free grid by 2035 are "neither achievable nor realistic." John E Amos Power Plant is a 2,932.6MW coal fired power project. The John E. Amos Power Plant near Winfield, West Virginia, is being studied for early retirement, along with the Mountaineer Power Plant near New Haven, West Virginia. Click here to stay informed and subscribe to Herald-Dispatch. That's according to the Institute for Energy Economics and Financial Analysis. Remaining cloudy. Choose wisely! The 2,900-MW John E. Amos coal-fired power plant near Charleston, W.Va., has been producing power since the early 1970s. . Your purchase was successful, and you are now logged in. The John E. Amos Power Plant near Winfield, West Virginia, is being studied for early retirement, along with the Mountaineer Power Plant near New Haven, West Virginia. For Appalachian Power and Wheeling Power, the plans show that both American Electric Power subsidiaries will continue to rely on the John Amos, Mitchell and Mountaineer coal-fired plants. The SCCs order, notably, adopts nearly all findings and recommendations contained in a July 2021 report issued by a Virginia senior hearing examiner. They also support, directly and indirectly, 6,600 jobs. Sign up for the Ohio Valley Resource newsletter. Click here to explore our interactive coal ash map >>. Create a password that only you will remember. latest-news-headlines If we instead retired one or both of the plants, we would have to spend billions of dollars on replacement capacity much earlier than necessary. Eighteen states led by West Virginia and a coalition of U.S. energy companies want strict limits on EPA authority to issue rules that could transform entire industries. The Virginia State Corporation Commission (SCC)on Aug. 23 rattled American Electric Powers (AEPs) plans to operate the 2.9-GW John Amos and 1.3-GW Mountaineer coal power plants through 2040 when it partly denied cost recovery for expenses that the West Virginia plants need to comply with the federal Steam Electric Effluent Limitations Guidelines (ELG) rule. When AEP has built new fossil fuel-powered plants in recent years, they have been gas burners. While AEP has made a major effort to pare down its reliance on coal powerkeeping with ambitions it announced in September 2019that it would seek to go net-zero by 2050as of June 30, the AEP system held 12.1 GW of coal-fired capacity, which is still nearly half its total capacity of 24.7 GW. Carbon Capture The big game changer, however, could be a tax on carbon. A 2018 investigation by the Ohio Valley ReSource and partner station WFPL found several ash sites are leaking potentially hazardous chemicals into groundwater. The cost of wind and solar have plummeted in recent years. . Utility customers in West Virginia, Virginia and Kentucky would pay for the cost. "The coal industry has always kept our people in the dark, and I don't look for it to change. Browse TV Schedule | Find WVPB Television, View Radio Schedule | Find Your Stations. to approve $317 million to pay for the retrofits to keep the plants operating until 2040. Management has assessed technology additions and retrofits to comply with the rule and the impacts of the Federal EPAs recent actions on facilities wastewater discharge permitting for FGD wastewater and bottom ash transport water. Permit modifications for affected facilities were filed in January 2021 that reflect the outcome of that assessment, AEP said. They are also the front line in a landmark environmental case before the U.S. Supreme Court, which will decide this spring how much authority the Environmental Protection Agency has to regulate earth-warming emissions from coal-fired power plants. Still churning electricity to West Virginia and beyond On July 26, meanwhile, the Biden administration initiated a supplemental rulemaking to strengthen certain discharge limits in the ELG rule. AEP and all contractors that work within the plant are very nice and Cordial. John Amos Plant - AEP The big game changer, however, could be a tax on carbon. In 2007 alone, AEP completed installation of advanced emissions control . Curtis Tate/West Virginia Public Broadcasting Listen By 2026, half of U.S. coal plant capacity will have retired over the course of just 15 years. Request WVPB Education to attend or host an event! A variety of resources for professional growth. Watch locally produced documentaries & more. Sign up for regular updates from the Ohio Valley ReSource. Were going to have additional hundreds of million dollars of investment thats going to be stranded and have to be paid for by the ratepayers, he said. Thats a risky investment considering the deteriorating economics of coal, said James Van Nostrand, who teaches law at West Virginia University and directs its Center for Energy and Sustainable Development. Other than in their local communities, the loss of Sporn and Kanawha River were barely noticed. State regulators are under pressure from lawmakers and coal industry supporters to prevent the plants from closing. "I think the days of coal being a primary generation source are over," Morningstar analyst Travis Miller said. Depending on post working, duties vary slightly. Well determine the best path forward to meet the resource needs in each state, and return to the commissions if necessary for consideration of our updated costs and plans., Entergy: Hurricane Ida Took Out Eight Critical High-Voltage Transmission Lines, Drought-Crippled Hoover Dam, Glen Canyon Hydropower Plants Operating at Substantially Decreased Capacity, 3D Printing: More Than Just a Cool Process, It Offers Real Benefits. Coal-fired power plants peaked at 314 gigawatts of electricity in 2011, according to the U.S. Energy Information Administration. ", 24/7 coverage of breaking news and live events. Mullins runs West Virginia's largest commercial solar installation in the shadow of the John Amos power plant. "It's weather all over, you know what I mean. Steam Electric Effluent Limitations Guidelines (ELG) rule. Gov. Justice signs four coal-related bills at John Amos Power Plant in The model predicts one of Mitchells two units would close in two years, and the other in three. With new environmental rules looming this week, coal-driven power plants are closing all over the . The 1,300-MW Mountaineer Power Plant outside New Haven in Mason County, West Virginia, was completed in 1980. Meanwhile, the cost of wind and solar energy has plummeted. "While the EPA does have a narrow array of authority to act in the area of carbon emissions, it's nowhere near what the Biden administration is suggesting," said West Virginia Attorney General Patrick Morrisey, a Republican, who warns thousands of jobs, industry profits, state tax revenue, and a reliable source of electricity are on the line. Inside and outside our model, 2040 is hard to imagine, said Scott Holladay, an associate professor of economics at the University of Tennessee. Do Not Sell or Share My Personal Information. West Virginia Coal Plants Need Upgrades. Three States Will Decide Their Had natural gas not become so plentiful and inexpensive, one or both might still be operating. Amos Plant - Global Energy Monitor Both are owned and operated by Appalachian Power, a subsidiary of American Electric Power, and both burn coal to generate electricity. But while the SCC moved to approve AEPs recovery of costs related to the federal Coal Combustion and Residuals (CCR), the commission denied about $4.2 million of expenses AEP had proposed for projects that would help the plants comply with the ELG rule. Buy Now. Great place to work. We need to keep that plant open, Del. Curtis Tate/West Virginia Public Broadcasting Appalachian Power and Wheeling Power did not prudently manage their coal supplies in 2021 and 2022, leading to shortages of fuel and higher electricity costs, a consulting group has concluded. And if it means raising our utility bills a little bit, so be it.. If you forget it, you'll be able to recover it using your email address. "We put so much clean energy, clean stuff on [the plant]. The John E. Amos Power Plant near Winfield, West Virginia, is being studied for early retirement, along with the Mountaineer Power Plant near New Haven, West Virginia. Both have another 20 years of service, more or less. Buy Now. "What nobody is talking about is the fact natural gas prices are now over $3 and absent a CO2 tax, a scrubbed coal plant can come close to competing with a gas plant, so maybe coal plant retirements continue but actually slow down," DeVries said. We told the Virginia SCC that making the environmental investments for both CCR and ELG compliance at Amos and Mountaineer plants is more beneficial for customers than making only the CCR compliance investments, retiring the plants in 2028, and finding replacement capacity, she said. PDF CLOSURE PLAN - AEP.com . Whether they close in 2028, 2040 or sometime between, the three plants will leave a void in the surrounding communities. , encouraging a shift toward cleaner energy. Over the same period, the National Oceanic and Atmospheric Administration estimates more frequent and more powerful storms in the region have dumped 55% more rain. The John Amos Plant has a nameplate rating of 2,933 MW, making it the largest generating plant in the AEP system. The plants three units were completed between 1971 and 1973. "We can't continue to risk everything for energy, you know, I mean coal keeps the lights on, they say, but at what cost?". At John Amos Power Plant, Manchin Vows to Oppose New - Senate A carbon tax puts a price on climate-changing greenhouse emissions, encouraging a shift toward cleaner energy. Closing the Amos plant alone in 2028 could save $1.4 billion, the Sierra Clubs analysis found. The rules require utility companies to perform the work or close the plants. With a carbon tax, the Sierra Club projects that utility customers could save $2.4 billion if Amos closed in 2028; $1.5 billion if Amos and Mountaineer closed and $350 million if Mitchell closed. Our next steps will be to evaluate our options in light of those orders, determine the best path forward to meet the resource needs in each state, and return to the commissions if necessary for consideration of our updated costs and plans, a spokesperson said. It predicts Mountaineers single unit would shut down in three years. Rain ending early. "But step one is to plan the retirement for coal units.". AEP has committed to reducing its carbon dioxide emissions and obtaining more of its power from renewable resources while also divesting itself of much of its coal-powered generating fleet. The John E. Amos coal-fired power plant in Poca, West Virginia. Workers at Appalachian Power's John E. Amos Power Plant near Winfield have found a . The order also directs Kentucky Power to provide the journal entries recorded when Kentucky Power acquired Mitchell and Mitchells remaining net book value, including all plant accounts and asset retirement obligations, as of the most recent month for which records are available, the PSC said in a statement. News & Technology for the Global Energy Industry. According to Appalachian Powers testimony, the Virginia jurisdictional share of the ELG investments would be about $60 million. Editorial: Two power plants' future becomes uncertain Coal is falling out of favor to lower-carbon or no-carbon sources of electric power in an effort to curb greenhouse gas emissions and slow climate change. Invalid password or account does not exist. This power plant, where we are standing here today, isliving proof that energy belongs to all of us, regardless of party labels. Comprehensive energy legislation in North Carolina calls for Duke Energy to retire more than 5,000 MW of capacity at five coal-fired power plants by Dec. 31, 2030, with retirement and replacement plans subject to review by the North Carolina Utilities Commission. . File photo/HD Media Other than in their local communities, the loss of Sporn and Kanawha River were barely noticed. What happened in Virginia is a complicated situation, but in simple terms, Appalachian Power wanted a rate increase there, but the Sierra Club opposed it. Both are . Electric utilities have already closed coal-fired power plants nationwide in favor of cheaper, abundant natural gas produced through hydraulic fracturing. Editorial: Two power plants' future becomes uncertain. The cost of wind and solar have plummeted in recent years. We find it is critically important to analyze the overall impact of this investment on both customer rates and reliability, and that [for this specific expense] the instant record is currently lacking in both regards, the SCC said in its order. For now, that would mean natural gas. that will be taken to close the CCR unit, including identification of major milestones such as coordinating with and obtaining necessary approvals and permits . Regulations drove some retirements, such as a wave of 2015 closures related to the U.S. Environmental Protection Agency's Mercury and Air Toxics rule. Still, power customers will have to pay those costs whenever the plants shut down. It predicts Mountaineers single unit would shut down in three years. The model predicts one of Mitchell's two units would close in two years, and the other in three. The Tennessee Valley Authority, shuttered the Paradise Fossil Plant in Western Kentucky. Our next steps will be to evaluate our options in light of those orders, determine the best path forward to meet the resource needs in each state, and return to the commissions if necessary for consideration of our updated costs and plans, a spokesperson said. The West Virginia Public Service Commission must decide in the coming weeks whether to approve an environmental compliance surcharge on electricity customers. PSC Makes Right Decision on Coal-Fired Power Plants "We are absolutely certain that there's going to be a considerable number of more retirements for this decade," Feaster said. However, the Kentucky Public Service Commission (PSC) on July 15 only approved CCR-compliance projects at Mitchell, moving distinctly to deny projects related to the ELG rule. Last year, AEP shut down the Conesville Plant in Coshocton, in Eastern Ohio. Recent months have seen a fresh round of new and accelerated retirement announcements driven by utilities adopting new climate policies and goals, said Seth Feaster, a data analyst at the Institute for Energy Economics and Financial Analysis. In addition to avoiding replacement capacity costs, the plants also serve to protect customers from potentially volatile energy costs, with energy being the actual amount of electricity used from whatever source. AEP installing scrubbers at John Amos Plant | Local News | register Closing the Mitchell plant in 2028 would save $118 million, it found. Rain showers this evening with overcast skies overnight. "Utilities will have to find a way to manage that risk," Miller said. Don't Threaten. Use the 'Report' link on We strive to take advantage of opportunities to beneficially reuse as much CCR material as possible. The coal it does not consume will not generate severance tax revenue for state and local government. "It's really a tough space for many of these plants to operate in.". A report by West Virginia Universitys Bureau of Business and Economic Research estimated the states power plants account for $4.8 billion in direct output, $725 million in wages and $97.3 million tax in revenue. A report published by the National Bureau of Economic Research shows that the John Amos, Mountaineer and Mitchell plants will no longer be economical to operate in five years. You have permission to edit this article. Fate Of West Virginia Coal Plants May Rest With Virginia Regulators The John Amos power plant in Putnam County, West Virginia. Theyve also embraced renewables. Our unique approach, utilizing dredging and concave contouring, reduced closure time and costs to rate payers. PSC gives approval for upgrades at John Amos, Mountaineer - WCHS
