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Siemens Cutting 200 Jobs at Texas Service Center

December 12, 2018

Siemens on December 11 said it would lay off about 200 workers at a gas turbines parts and components service center in Houston, Texas, sometime in late 2019 or early 2020. A company spokesperson made the announcement Tuesday, saying the cuts are due to weak global demand for the company’s turbines.

Siemens in a statement said the decision was “difficult.” The company, in a letter to the Texas Workforce Commission, also said the layoffs were partly due to overcapacity within the company’s network.

Siemens in September said that it would cut 2,900 jobs in Germany to boost the competitiveness of its Power and Gas and Process Industries divisions. The company at the time said the cuts would save about $ 590 million.

Lisa Davis, member of the Managing Board of Siemens AG, in a statement at the time said, “The market for fossil power generation has contracted substantially. Against the backdrop of this structural change, the agreement we’ve reached [with the company’s unions] is critical to improving our competitiveness.”…

Texas Utility Ready to Ramp Up Renewables

March 14, 2018

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The CEO of Texas-based CPS Energy said March 6 that the utility wants to generate at least 50% of its power from renewable sources by 2040, part of a plan that includes the addition of 550 MW of battery storage, as it looks to reduce its dependence on fossil fuels. But the city-owned San Antonio utility will continue to operate coal and natural gas-fired power plants, though the city’s mayor has said he would oppose building more fossil fuel-powered units.

CPS CEO Paula Gold-Williams outlined the company’s “flexible path” strategy in a meeting with the utility’s board of directors on Tuesday. The utility last year announced it would close its two coal-fired units at the 840-MW Deely station (Figure 1) in San Antonio, one of several Texas coal plants being retired this year, though it will continue to operate two natural gas-fired units—the Sommers Gas Plant—at the site, with generation capacity of 892 MW.

1. Closing in 2018. The Deely power plant near San Antonio will be closed in 2018.

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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.”…