power | EnergyNorthwest.com

Ohio Committee Suspends FirstEnergy’s Nuclear Power Rescue Plan

May 20, 2017

Ohio-based FirstEnergy’s plan for a rescue of its two uncompetitive Ohio nuclear plants took a nosedive May 17, as the Ohio House Public Utilities Committee suspended action on the company’s proposal to charge its customers a fee to subsidize the plants.

FirstEnergy’s plan mimics programs adopted in Illinois and New York to create “zero energy credits,” or ZECs, allowing the company to make competitive bids into the PJM regional wholesale market.

The chairman of the House committee, William Seitz, a Cincinnati Republican, suspended further hearings on the measure (House Bill 178). “We have heard over 10 hours of testimony on this bill. I have given proponents and opponents a chance to make their case. I am not sensing a keen desire on the part of the House members to vote on this and doubt that we will have more hearings in the near future unless something cataclysmic happens,” Seitz said.

Cleveland newspaper The Plain Dealer suggested “cataclysmic events might include a decision by FirstEnergy Solutions to seek bankruptcy protection from its creditors or a decision by the company to immediately close its four nuclear power plants.”…

Report: Cheap Natural Gas Poised to Roil PJM Power Market

May 13, 2017

| No Comments

| Industry News

The flood of cheap Marcellus Shale gas driving massive construction of new natural gas power generation capacity could wreak havoc in the PJM power market, Moody’s Investors Service suggests in a new report.

Two of the nation’s largest power markets, Texas and California, already pose a “distressed environment” for unregulated power companies owing to declining market prices, the credit ratings agency said. Now, a glut of new gas generation in PJM—where new plants are expected to add up to 100 TWh, boosting gas power capacity 25%, by 2021—is poised to increase supply “amid little prospect of growth in demand,” it said.

The agency noted that PJM’s latest forecast report indicates load growth has declined over the last decade, with system load falling to 790 TWh in 2015 from 822 TWh in 2005. Peak demand has also fallen to 143 GW in 2015 from 154 GW in 2005. “Over the past few years PJM has also repeatedly cut its forecasts, and the grid operator currently projects weather-adjusted peak demand growth of only 0.2% per year over the next 10 years,” the report says.…

D.C. Circuit Halts Clean Power Plan, Mercury Rule Litigation

April 29, 2017

| No Comments

| Industry News

In two separate actions over the past 24 hours, the D.C. Circuit granted the Environmental Protection Agency’s (EPA’s) request to suspend cases challenging the Clean Power Plan and the Mercury and Air Toxics Standards (MATS).

The orders are the latest in a series of similar actions over the past month by the D.C. Circuit that paused other major cases challenging Obama-era environmental rules to give the Trump administration more time to review them.

On April 11, the court granted the EPA’s motion to indefinitely delay a decision on challenges to the agency’s 2015 National Ambient Air Quality Standards (NAAQS) for ozone in Murray Energy Corp. v. EPA (No. 15-1385). On April 24, it shelved oral arguments in challenges to the EPA’s rule that requires 36 states to revise emissions exemptions in their state implementation plans for startup, shutdown, and malfunction events at power plants and other facilities. That case, Walter Coke, Inc., et al v. EPA (No. 15-1166), may be reopened depending on the action the EPA decides to take.…

Drought Has Big Impact on California Power Market

April 27, 2017

| No Comments

| Industry News

Rain and snow has returned to California, ending the record-setting drought with record-setting precipitation.

The drought led to forest fires, dead orchards, and brown lawns. It also took a big bite out of ratepayers’ wallets and increased global warming emissions, due to the loss of low-cost, zero-emission hydropower.

In a study released April 26 by Peter Gleick—a noted water expert at the Pacific Institute in Oakland—researchers found that lower hydropower production cost California ratepayers almost $ 2.5 billion in higher power prices, and may have raised power sector carbon dioxide emissions 10%, due to increased output from gas-fired generators (see Figure 2). Gleick’s team used data through September 2016 to calculate the figures.

Courtesy: Pacific Institute

California has 14 GW of hydro capacity, with little growth in recent decades due to environmental, economic, and political constraints. While hydro typically supplies about 18% of California’s power, the drought dropped production to as low as 7% in 2015, the driest year of the drought.…

Trump’s EPA Signals Changes for Power Plant Mercury Rule

April 21, 2017

| No Comments

| Industry News

The Trump administration is “closely” reviewing the Environmental Protection Agency’s (EPA’s) final cost consideration finding for its Mercury and Air Toxics Standards (MATS) to determine whether it should reconsider the rule or some part of it, it said in an April 18 federal court filing.

The EPA filed a motion with the D.C. Circuit urging the court to delay oral arguments scheduled on May 18 for a case filed by an assortment of coal producing and generating companies, which are challenging the agency’s “Supplemental Finding That It Is Appropriate and Necessary To Regulate Hazardous Air Pollutants From Coal- and Oil-Fired Electric Utility Steam Generating Units.”

Delay and Deflect

In its court filing, the agency said that it needs more time as it “intends to closely review the Supplemental Finding, and the prior positions taken by the Agency with respect to the Supplemental Finding may not necessarily reflect its ultimate conclusions after that review is complete.”

The Obama administration’s EPA issued the final supplemental finding a year ago after a divided Supreme Court in June 2015 (in Michigan v.…

Fight to Keep EPA’s Clean Power Plan Alive Intensifies in Federal Court

April 7, 2017

| No Comments

| Industry News

A coalition of 24 states and localities have urged a federal court reviewing the merits of the Environmental Protection Agency’s (EPA’s) Clean Power Plan to stall the agency’s recent motion to suspend a case challenging the controversial rule.

West Virginia v. Environmental Protection Agency (No. 15-1363) is arguably the most important set of environmental cases in nearly a decade. For the U.S. power sector, the stakes are particularly high. The sector has grappled with uncertainty about the Clean Power Plan’s future since the Supreme Court issued a stay of the rule on February 9, 2016.

The D.C. Circuit Court of Appeals heard oral arguments in the case before an en banc panel on merits of the EPA’s controversial rule on September 27, 2016.

Twenty-seven states are challenging the legality of the rule finalized by the EPA under the Obama administration. They are: Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, West Virginia, Wisconsin, and Wyoming.…