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Generators Sue to Block Lifeline for New York Nuclear Plants

October 21, 2016

A group of generators including Dynegy and NRG Energy filed suit in federal court on October 19 seeking to block an incentive program that would help three New York nuclear power plants remain economic over the next decade.

An August decision by the New York Public Service Commission (PSC) approving New York’s Clean Energy Standard included a provision requiring the state’s investor-owned utilities and other energy suppliers to pay for the intrinsic value of carbon-free emissions from nuclear power plants by purchasing “Zero-Emission Credits” (ZEC). Those credits are added to the wholesale price each plant receives for its power, and the costs are passed on to ratepayers.

Subsidies for New York Nuclear Plants Unlawful, Suit Says

The plaintiffs argue that the plan interferes with wholesale power prices in violation of the Federal Energy Regulatory Commission’s (FERC’s) authority over interstate power sales. In particular, they point to a case the U.S. Supreme Court decided earlier this year, Hughes v. Talen Energy Marketing, which struck down a subsidy program in Maryland on the same grounds.…

Court Orders EPA to Evaluate Coal Industry Job Losses Related to Air Pollution Rules

October 19, 2016

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A federal court has ordered the Environmental Protection Agency (EPA) to file a plan and schedule to evaluate the consequences of its air pollution rules on jobs, finding for a giant coal company that is suing the agency for an alleged “war on coal” waged over the past five years.

In an October 17 summary judgment, U.S. District Judge John Preston Bailey for the U.S. District Court for the Northern District of West Virginia ordered the agency to file the plan and schedule within 14 days.

The EPA must fully comply with a provision in the Clean Air Act (Section 321[a]) adopted by Congress in 1977 that requires the agency to continually evaluate job losses, which may stem from air pollution rules, said Bailey. Moreover, if the EPA refused to conduct the required evaluation, it would constitute an “abuse of discretion,” owing to the importance, widespread effects, and the claims of the coal industry, he said.

Irreparable Harm

The case stems from a lawsuit filed in March 2011 by troubled coal giant Murray Energy Corp.…

MPUC Decision Spells End for Two Coal Units at Xcel’s Largest Plant

October 15, 2016

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The Minnesota Public Utilities Commission (MPUC) voted unanimously to support Xcel Energy’s latest long-range plan, which will transform the company’s energy fleet.

Xcel expects to more than double its renewable energy portfolio as a result, delivering greater than 60% carbon-free energy to its Upper Midwest (Michigan, Minnesota, North Dakota, South Dakota, and Wisconsin) customers by 2030.

Coal-Fired Capacity Takes a Hit

The MPUC approval finalizes Xcel’s decision to retire Units 1 and 2 at the Sherburne County Generating Plant (Sherco, Figure 1) in Becker, Minn. Sherco is a 2,222-MW three-unit facility—Xcel’s largest. The company announced last year that it wanted to close the 1976- and 1977-commissioned units, but it still plans to continue operating the 860-MW Unit 3 (added in 1987). Xcel co-owns that unit with Southern Minnesota Municipal Power Agency, which holds a 41% stake.

1. Sherburne County Generating Plant. Units 1 and 2 will be retired in 2023 and 2026, respectively. Courtesy: Xcel Energy

Laura McCarten, regional vice president of Xcel Energy, told POWER that Unit 1 would be retired in 2023 and Unit 2 would be shuttered in 2026.…

New Technology Offers Hope for Cost-Effective Carbon Capture and Storage Systems

October 13, 2016

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Academics at the University of Sheffield—a public research university in the UK—have begun two new carbon capture and storage (CCS) projects, searching for cheaper methods of capturing carbon dioxide (CO₂) from fossil-fueled power plants.

The work is being funded by the European Commission’s (EC’s) Horizon 2020 Low Carbon Energy program.

Solvents Could Be Game-Changing

The “ROLINCAP” project received €3.2 million to explore how new chemical solvents could be used in a “rotating packed bed” process, which is designed to accelerate chemical reactions. The method may allow CO₂ to be captured more efficiently, with smaller equipment than was previously required.

“Our European consortium will work with experts from South Korea to develop technologies for post-combustion carbon capture and storage. We will explore new solvents and new techniques for process intensification, which I hope will lead to cheaper, more efficient carbon capture,” said Meihong Wang, Professor of Energy Systems in the Department for Chemical and Biological Engineering.

Carbon Clean Solutions Ltd.…

PSEG Will Retire Two New Jersey Coal Power Plants

October 11, 2016

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Public Service Enterprise Group (PSEG) will close the 620-MW Hudson Generation Station in Jersey City, N.J., and the 632-MW Mercer Generation Station in Hamilton Township, N.J., on June 1, 2017.

“The sustained low prices of natural gas have put economic pressure on these plants for some time. In that context, we could not justify the significant investment required to upgrade these plants to meet the new reliability standards,” Bill Levis, president and COO of PSEG Power, said in a statement released on October 5. “The plants have been infrequently called on to run and neither plant cleared the last two PJM capacity auctions. The plants’ capacity payments have been critical to their profitability and PSEG’s ability to continue to invest in modernizing them.”

PSEG said it is committed to working with union representatives to limit the impact of the closures on the 200 affected employees, roughly split between the two facilities.

“These plants have played a critical role in powering the growth and economic expansion of New Jersey and PSEG is grateful to our employees who have played a part in building and running them for the past 50 years,” said Levis.…

Delayed Again, Kemper County IGCC Plant to Start Operations in a Month

October 6, 2016

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Mississippi Power’s integrated gasification combined cycle (IGCC) power plant under construction in Kemper County, Miss., will likely be placed in service by November 30, a month later than anticipated. The delay will be costly.

Mississippi Power reached a new milestone on September 16, announcing that it had started producing syngas using the second gasifier—gasifier “A”—at the facility. Initial production of syngas at gasifier “B” began on July 14, demonstrating the viability of transport integrated gasification technology, which is being used for the first time at commercial scale, Southern Co. said in a statement.

In late August, however, gasifier B was taken offline for inspection, the company said in an October 3 filing with the U.S. Securities and Exchange Commission.

“The removal of ash and ash deposits prior to the inspection of gasifier ‘B’ required more time than initially expected. Additional time has been added to the schedule to allow for the restart of gasifier ‘B’ and for both gasifier trains to achieve the sustained capacity levels necessary for the initial operations and testing of the syngas clean-up systems and the production of electricity using syngas,” it said.…