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More U.S. Coal Units Closing Despite Possible Market Pricing Change

November 22, 2017

U.S. utilities continue to announce closures of financially troubled and older coal-fired power plants even as government officials work on a bailout plan to keep them operating.

Owners of a coal plant in Montana that has only been online since 2006 informed the state’s Public Service Commission (PSC) last week of plans to shutter the facility early next year if they can’t find a buyer. The news comes at the same time Louisville Gas & Electric and Kentucky Utilities (LG&E-KU) said it would close two long-running coal-fired units at the E.W. Brown Generating Station near Harrodsburg, Kentucky, in February 2019.

The announcements are the latest in a series of closures announced in recent months, including three large coal-fired plants in Texas—two operated by Vistra Energy and another by Luminant, a Vistra subsidiary—that generate about 4.2 GW of electricity, or about 12% of the state’s coal-fired generation capacity. Another large Texas plant, CPS Energy’s 840-MW Deely station in San Antonio, is scheduled to close in 2018.…

Vistra Closing Two More Giant Uneconomic Coal Plants in Texas

October 17, 2017

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Vistra Energy moved to halt a financial hemorrhage stemming from unprofitable conditions in the Electric Reliability Council of Texas (ERCOT), announcing plans to shutter two more coal-fired power plants—the 1.1-GW Sandow Power Plant (which includes a 2009-built unit) and the 1.2-GW Big Brown plant—in early 2018.

The company’s decision made public on October 13 comes on the heels of an announcement last week by Vistra Energy subsidiary Luminant to shutter its 1.9-GW coal-fired Monticello plant in Titus County.

Vistra Energy said the coal plant closures are necessary because they are “economically challenged in the competitive ERCOT market.” Specifically, it said, “Sustained low wholesale power prices, an oversupplied renewable generation market, and low natural gas prices, along with other factors, have contributed to this decision.”

Terminating Years of Service

“This announcement is a difficult one to make,” said Vistra Energy President and CEO Curt Morgan. “It is never easy to announce an action that has a significant impact on our people. Though the long-term economic viability of these plants has been in question for some time, our year-long analysis indicates this announcement is now necessary.”…

Entergy Gives Palisades Nuclear Plant Five More Years to Run

September 28, 2017

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Entergy Corp. will keep the Palisades nuclear power plant in Covert, Michigan, open until the spring of 2022, owing to a shortfall in recovery granted to Consumers Energy by state regulators.

In a bid to actively exit the merchant nuclear power business, investor-owned Entergy had decided to shutter the 798-MW plant by October 1, 2018. “Market conditions have changed substantially, and more economic alternatives are now available to provide reliable power to the region,” it said when it announced its decision about a year ago.

The decision came as a surprise because Entergy has a power purchase agreement with Consumers Energy—Michigan’s largest utility and the principal subsidiary of CMS Energy—which committed the company to buying nearly all the power generated at Palisades through April 2022. Entergy reasoned the plant’s closure could save Consumers’ customers as much as $ 172 million over four years, even after Consumers paid Entergy $ 172 million to terminate the contract.

On September 22, however, the Michigan Public Service Commission granted Consumers a recovery of only $ 136.6 million of the $ 172 million it requested for the buyout of the power purchase agreement. …

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.…

Vogtle, V.C. Summer Project Owners Buy More Time to Mull Fate of Nuclear Units

May 1, 2017

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The owners of the Vogtle and V.C. Summer nuclear expansions separately secured a few more weeks to allow work to continue onsite at each project while they decide how to proceed with the half-built AP1000 reactors after Westinghouse’s financial debacle.

In Georgia, owners of the project to expand Plant Vogtle extended an interim assessment agreement with Westinghouse until May 12. But Georgia Power’s parent company Southern Co. also revealed it is negotiating a new service agreement that could engage Westinghouse to provide design, engineering, and procurement services in the event Southern Nuclear Operating Co.—Southern Co.’s nuclear unit operations arm—takes over management of construction at Units 3 and 4.

And in South Carolina, owners of the project to expand V.C. Summer extended a similar agreement through June 26. The project owners detailed their concerns and options in a recent ex parte briefing at the South Carolina Public Service Commission (PSC)

Vogtle Agreement Extended Until May 12

Georgia Power and Vogtle’s other owners on April 28 extended an interim assessment agreement with Westinghouse before it was set to expire, giving them until May 12 to assess the project.…

AES Closing Two More Ohio Coal Plants

March 22, 2017

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AES subsidiary Dayton Power & Light (DP&L) confirmed on March 20 that it will close two of its coal-fired plants by 2018 because they have become uneconomic.

The Ohio utility announced its intent to close the two plants in January as part of a settlement over its future reliability planning. The plan had been contested by a variety of parties and environmental groups. DP&L agreed to close the plants and shift its power mix toward more renewable energy. Monday’s announcement makes the move official.

AES purchased the two plants, J.M. Stuart Station and Killen Station, from Duke’s merchant generation arm in 2014. Killen is a single-unit, 618-MW plant in Wrightsville that began operations in 1982. Stuart, a four-unit, 2,318-MW plant in Aberdeen, first came online in 1969. DP&L owns 35% of Stuart and 67% of Killen.

According to local media, the closure may not quite be a done deal. Coal mining firm Murray Energy, which supplies coal to the plants and stands to lose a substantial amount of business if they shut down, is contesting the settlement with the Ohio Public Utilities Commission.…