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Billions Over Budget, Kemper Facility Gasification Portion Is Suspended

June 29, 2017

Operations and start-up of the lignite gasification portion of the Kemper County Energy Facility, marred by exorbitant delays and cost overruns, and will be suspended immediately, Mississippi Power announced on June 28.

The Southern Co. subsidiary plans to continue running a combined cycle gas turbine (CCGT) plant that was completed as part of the $ 7.5 billion project three years ago, pending the Mississippi Public Service Commission’s (MPSC) decision on future operations.

Southern Co said the step was “appropriate” to manage skyrocketing costs, given the economics of the project, and the MPSC’s recent intent to establish a settlement docket to address matters related to the future operation of the gasifier portion of the project.

The proposed settlement docket is to be established by the commission on July 6. “The company will make any future announcements as to the status of the project based on the outcome of that process or future Commission action,” Southern Co. said.

Jack Bonnikson, a Southern Co.…

SCANA, Santee Cooper Buy More Time for V.C. Summer Decision

June 27, 2017

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SCANA Corp. subsidiary South Carolina Electric & Gas Co. (SCG&E) and Santee Cooper—owners of the two-unit expansion of the V.C. Summer nuclear plant—have extended an interim assessment agreement with Westinghouse to allow the project’s owners to “continue to make progress on the site.”

The companies on June 26 extended the agreement to August 10, but it is subject to bankruptcy court approval.

“The agreement extension allows the co-owners additional time to maintain all of their options by continuing construction on the project, while examining all of the relevant information for a thorough and careful assessment to determine the most prudent path forward,” the project owners said.

“The goal is to reach a decision in the third quarter.”

A Hard Decision to Make

SCE&G and Santee Cooper have worked with Westinghouse to reach agreement on the project even before the Toshiba company filed for bankruptcy protection in late March. Westinghouse cited liquidity crisis stemming from losses at the V.C. Summer and Vogtle AP1000 projects for its financial collapse.…

Mississippi PSC: Kemper Facility Should Operate Using Only Natural Gas

June 25, 2017

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The Mississippi Public Service Commission (MPSC) at an open meeting on June 21 unanimously passed a motion instructing its counsel to prepare an order pursuing potential solutions regarding the Kemper County Power Generation Facility.

In a press release, the MPSC said the “Kemper Facility should operate using only natural gas.” The commission said it wanted to remove risk from ratepayers for the lignite coal gasifier and related assets, and ensure no further rate increases were incurred by Mississippi Power Co. customers. (In fact, the commission strongly encouraged rate reductions, particularly for residential customers.)

Mississippi Power issued a statement on the MPSC decision. It said, “The PSC provided several guidelines to consider for the negotiations, including the possibility of the project only operating as a natural gas-fueled combined cycle plant. We expect the process for any negotiations and this new docket will be formally addressed as part of a proposed order the Commission will consider at their July 6 meeting. We look forward to reviewing the order.”…

Report: Killing Clean Power Plan Could Cost Nation 560,000 Potential Jobs

June 23, 2017

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If the Trump administration’s efforts to roll back the Clean Power Plan (CPP) are successful, the nation could miss out on 560,000 potential jobs and a boost of $ 52 billion to the gross domestic product (GDP), according to a report released by Environmental Entrepreneurs (E2).

“From states with relatively small populations like Maine and Montana to highly populated states like Florida, the CPP could have substantial employment and economic benefits — benefits that would disappear with the Trump Administration’s repeal of the policy,” the June 21 report says.

The CPP has been a thorn in the side of coal proponents since it was proposed in 2014. The rule requires states to develop action plans to meet state-specific, federally-set carbon emissions reduction goals for existing coal-fired power plants.

According to the E2 report, implementation of the CPP would result in the creation of up to 560,000 jobs and add up to $ 52 billion to the nation’s GDP. Those benefits will be lost if the rule is weakened or rescinded, the report says.…

Cost Overruns at Vogtle Expected to Soar

June 21, 2017

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Georgia Power officials say the utility continues to work with its partners in the troubled Vogtle nuclear plant to firm up construction timelines and determine the costs to complete two new units at the facility. At the same time, a group opposed to the project and two long-time project consultants say ballooning costs should put an end to the plan.

A recent report from the consultants—William Jacobs, Jr., the project’s independent construction monitor since 2009, and Steven Roetger, the GPSC’s lead analyst for the project—to the Georgia Public Service Commission (GPSC) said the Vogtle project, already billions of dollars over budget and years behind schedule, is not economically viable, with a recommendation it should be abandoned.

The news comes just days after Southern Co., parent of Georgia Power, and Westinghouse reached a deal in which Westinghouse parent Toshiba agreed to pay Southern $ 3.68 billion to keep the project moving forward and continue the process of moving project management at Vogtle Units 3 and 4 from Westinghouse to Georgia Power.…

Wind and Solar Cross 10% U.S. Generation Share as Prices for Solar Keep Falling

June 19, 2017

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Marking a significant milestone, power generation from the combined utility-scale and small-scale wind and solar installations in the U.S. surpassed 10% of the nation’s total power generation in March, according to the Energy Information Administration (EIA).

The news comes on the heels of an announcement last week by the Solar Energy Industries Association (SEIA) that installed system prices for solar systems have fallen across all market segments. Also for the first time, fixed-tilt utility-scale systems dipped under the $ 1/W barrier, SEIA said.

Breaking the Barrier—on a Gigawatt-Watt Level

The EIA said on June 14 that generation from wind and solar has grown steadily since 2007. On an annual basis, wind and solar generation made up 7% of total U.S. power generation in 2016.

The EIA noted that wind and solar follow seasonal patterns. Wind patterns vary based on geography. Wind generators in Texas and Oklahoma, for example, have their highest output in spring, while California generators see a boost in output in the summer.…