The Virginia State Corporation Commission (SCC) on Aug. 23 rattled American Electric Power's (AEP's) plans to operate the 2.9-GW John Amos and 1.3-GW Mountaineer coal power plants through 2040 . State regulators are under pressure from lawmakers and coal industry supporters to prevent the plants from closing. And while that order would have meant Mitchell will need to cease operations in 2028, the, The Kentucky PSCs new order, notably, directs Kentucky Power to explain. Its just its the money would be so much better spent on going down a clean energy path that would produce more jobs and put more money in the pockets of ratepayers, he said. Mitchell and Amos began operating in 1971, and Mountaineer in 1980. "I have never seen flooding like I've seen here in the past, really in the past 20 years," said longtime environmental activist Maria Gunnoe, whose family has lived and mined in West Virginia for generations. "It's really a tough space for many of these plants to operate in.". Slated retirements to cut US coal fleet to less than half 2015 capacity Your Herd from Herald-Dispatch Reach Manager. We are first in your inbox with the most important news in the industry―keeping you smarter and one-step ahead in this ever-changing and competitive market. CLENDENIN, West Virginia -- A historic flood from sudden torrential rain nearly wiped out entire towns in West Virginia's mountainous coal country, killing 23 and inflicting $1 billion in damage. The plants three units were completed between 1971 and 1973. It predicts Mountaineers single unit would shut down in three years. Editorial: WV about to lose another coal-fired power plant Were going to have additional hundreds of million dollars of investment thats going to be stranded and have to be paid for by the ratepayers, he said. Our unique approach, utilizing dredging and concave contouring, reduced closure time and costs to rate payers. In addition to avoiding replacement capacity costs, the plants also serve to protect customers from potentially volatile energy costs, with energy being the actual amount of electricity used from whatever source. West Virginias power plants are a source of electricity, jobs and tax revenue. that will be taken to close the CCR unit, including identification of major milestones such as coordinating with and obtaining necessary approvals and permits . Both plants handle part of Appalachian Powers baseload needs in Virginia and West Virginia, so their output would have to be replaced with a dependable source. We are required to have a certain level of capacityin other words, we must be ready to provide our customers a certain amount of power at any given time. Shutting down either plant would be hard on the economies of their local communities, not to mention the West Virginia coal industry in general. Hydropower Experiencing Climate Impacts From Drought, Flooding, NRC Cites Problems at Vogtle, May Increase Project Oversight, West Virginia PSC Approves Continued Operation of Three AEP Coal Power Plants Through 2040, FirstEnergy, AEP, and GenOn Continue Trimming Coal-Fired Fleet Size, AEPs John W. Turk, Jr. Power Plant Earns POWERs Highest Honor, American Electric Power: A Coal Powerhouse Repositions Itself, Green Hydrogen Ultrapure Water EDI Solutions, Entergy Grows Revenue, Increases Customer Satisfaction with Value-Added Services, Flexible & Reliable: Optimal performance amid variable power generation. This pond has been capped and was closed at the end of 2017. This power plant, where we are standing here today, isliving proof that energy belongs to all of us, regardless of party labels. Such plants are becoming more scarce as the nation retires much of its coal fleet in a transition to other forms of electricity generation. Do Not Sell or Share My Personal Information. After negotiating various components of the request, the two parties decided that Appalachian Power would study what would happen if the two plants were retired and the company replaced their output with other sources. The coal it does not consume will not generate severance tax revenue for state and local government. The two plants represent around two-thirds of the subsidiarys generating fleet. Amos and Mountaineer are valuable to customers as capacity resources,, Appalachian Power spokesperson Jeri Matheney explained to. The demand for electricity is flat, even factoring in the pandemic. A final decision should be coming in the next several weeks. We are first in your inbox with the most important news in the industry ― keeping you smarter and one-step ahead in this ever-changing and competitive market. The company sought recovery of an estimated $240 million investment to ensure both plants will be in compliance with both federal rules. We will take into consideration the three commission orders and the many impacts of all possible options. Litigation has complicated that plan, but EPA expects to unveil a new approach this summer. Amos Plant uses dry fly ash handling and no longer requires use of the fly ash pond. The 2,900-MW John E. Amos coal-fired power plant near Charleston, W.Va., has been producing power since the early 1970s. The John E. Amos coal-fired power plant in Poca, West Virginia. U.S. Coal Use Has Declined By Half, When Measured By Power Produced They generated the electricity for homes around the Ohio Valley. We'll send breaking news and news alerts to you as they happen! Cheap, abundant natural gas has been eroding coals share of electric power generation for more than a decade. AEP plans to close its 2,600-megawatt Rockport Plant in southern Indiana by 2028. Browse TV Schedule | Find WVPB Television, View Radio Schedule | Find Your Stations. Be Truthful. The plant employs around 300 people with . For bottom ash transport water, it revised the 2015 rules zero-discharge limitations. The Virginia State Corporation Commission (SCC)on Aug. 23 rattled American Electric Powers (AEPs) plans to operate the 2.9-GW John Amos and 1.3-GW Mountaineer coal power plants through 2040 when it partly denied cost recovery for expenses that the West Virginia plants need to comply with the federal Steam Electric Effluent Limitations Guidelines (ELG) rule. Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to email a link to a friend (Opens in new window), AEP subsidiaries Wheeling Power and Appalachian Power have asked. "The only question now is the glide path and how steep it is," Godby said. Appalachian Power is supposed to report the results of its study before the end of 2022. AEP subsidiaries Wheeling Power and Appalachian Power have asked the state Public Service Commission to approve $317 million to pay for the retrofits to keep the plants operating until 2040. Watch locally produced documentaries & more. John E. Amos Power Plant - Wikipedia According to direct testimony submitted to the SCC earlier this year by Brian D. Sherrick, managing director of Projects for AEP Service Corp., continued operation under CCR and ELG rules would cost $177.1 million at Amos and $72.9 million at Mountaineer. Winds WSW at 10 to 15 mph. Its three power units released 10.8 million tons of earth-warming carbon dioxide last year or the equivalent of more than 2 million cars driven for a year government records show. The early and simultaneous retirement of nearly two-thirds of the companys capacity would expose the company and our customers to an imprudent level of uncertainty and market volatility, she said. A 2018 investigation by the Ohio Valley ReSource and partner station WFPL found several ash sites are leaking potentially hazardous chemicals into groundwater. Appalachian Power, the AEP subsidiary that owns the two plants, warned in its last 10-Q filing, dated July 22, that denial of ELG investment recovery could cause the company to close the generating facilities by 2028more than a decade earlier than their planned retirement in 2040. High 53F. This is the name that will be displayed next to your photo for comments, blog posts, and more. Both are . 2 Logan, Walk-off hit by Brumfield sends No. The plant operates three landfills and six unlined surface impoundments that were commissioned in 1971. An email message containing instructions on how to reset your password has been sent to the e-mail address listed on your account. "We understand the energy grid is in transition, but we also believe it's critical to heighten the level of awareness about how a transition away from dispatchable resources like coal can adversely impact system reliability and resilience," Bloodworth said. Power plant workers, coal miners, trade associations, and state and local officials have pleaded with the commission to approve the work. estimated the states power plants account for $4.8 billion in direct output, $725 million in wages and $97.3 million tax in revenue. AEP and other power plant operators are retiring coal-fired plants in the region. Appalachian Power president says closing Mitchell plant would save It may not be that simple, however. What happened in Virginia is a complicated situation, but in simple terms, Appalachian Power wanted a rate increase there, but the Sierra Club opposed it. Close. Matt Bevin and former President Donald Trump. 2023 Access Intelligence, LLC - All Rights Reserved. These Coal Plants Need Upgrades. Three States Will Decide Their Fate - WKMS Closing the Amos plant alone in 2028 could save $1.4 billion, the Sierra Clubs analysis found. A couple of large coal-fired power plants in this area could be retired ahead of schedule. At the Virginia SCC, Appalachian Power had argued its proposed investments for specific projects at the Amos and Mountaineer plants were the most cost-effective means of compliance with the federal CCR and ELG rules. They also support, directly and indirectly, 6,600 jobs. Electric utilities have already closed coal-fired power plants nationwide in favor of cheaper, abundant natural gas produced through hydraulic fracturing. Chris Harris/The Herald-Dispatch The John Amos Power Plant in Putnam County, W.Va., Sunday, Jan. 6, 2008. Based on already planned and announced retirements, less than half of the U.S. coal-fired power generation capacity that existed at the start of 2015 will remain online by 2035, a new S&P Global Market Intelligence analysis shows. The early and simultaneous retirement of nearly two-thirds of the companys capacity would expose the company and our customers to an imprudent level of uncertainty and market volatility, she said. Both are owned and operated by Appalachian Power, a subsidiary of American Electric Power, and both burn coal to generate electricity. Remaining cloudy. Over the same period, the National Oceanic and Atmospheric Administration estimates more frequent and more powerful storms in the region have dumped 55% more rain. Yet these power plants are vulnerable to the same economic forces that have swept through the industry nationwide in the past decade. Editorial: Two power plants' future becomes uncertain that is degrading to another person. Last year, AEP said it would shut down or refuel 5.6 GW of its 2020 coal-fired power fleet by 2030 to comply with environmental rulesincluding recent revisions to federal CCR and ELG rulesand rebalance its portfolio in a bid to meet ambitious climate goals. When AEP has built new fossil fuel-powered plants in recent years, they have been gas burners. Duke Energy will retire all of its power plants in the Carolinas that "rely exclusively on coal" or about 9,000 MW of capacity within the next ten years under the six scenarios outlined in its utilities' 2020 integrated resource plans. The lower output means fewer workers, from the mines to the power plants. "For Amos and Mountaineer our analysis demonstrates complying with both the CCR and ELG rules and operating both plants through 2040 will be less costly for customers than the next best option,. Similar projects are slated for the Mountaineer plant, including a modification of the bottom ash handling system, installation of a new ash bunker, and a retrofit of a new ultrafiltration system to the existing FGD treatment system. Early childhood development & learning resources. It's one of 174 coal-fired plants nationwide that could be impacted by the Supreme Court's decision. They plan on retiring another 25 gigawatts through 2025. With a nameplate rating of 2,933 MW,[1]it is the largest generating plant in the AEP system. Since then, the agency has attempted to enact new limits on power plant carbon dioxide emissions, a primary driver of global warming. A carbon tax puts a price on climate-changing greenhouse emissions. Still, Holladays model says one of the three units at the Amos plant should already be taken offline because it no longer operates economically. The ELG rule, for example, has been mired in rollbacks, prompting some uncertainty within the coal power sector about where and when to make investments. They burned coal, a fossil fuel Appalachia has in abundance. Both are owned and operated by Appalachian Power, a subsidiary of American Electric Power, and both burn coal to generate electricity. Had natural gas not become so plentiful and inexpensive, one or both might still be operating. The ruling means the Mountaineer, Mitchell and John Amos power plants will be able to continue operations until at least 2040. We had more snow when I was a kid. The order also directs Kentucky Power to provide the journal entries recorded when Kentucky Power acquired Mitchell and Mitchells remaining net book value, including all plant accounts and asset retirement obligations, as of the most recent month for which records are available, the PSC said in a statement. "We think market operators need to revisit payment mechanisms to ensure these dispatchable generators don't retire due to artificially driven economics," Bloodworth said. If you're interested in submitting a Letter to the Editor, click here. [2] "Utilities will have to find a way to manage that risk," Miller said. Ohio Valley ReSource. We are currently in the midst of a $1.4 billion scrubbers construction project for the John E. Amos plant alone.". John E. Amos Power Plant is a three-unit coal-fired power plant owned and operated by Appalachian Power. By, Instructions for Submitting an Event to WMKY, Contests, Giveaways, Lotteries and Raffles Policy, The West Virginia Public Service Commission, How South Africa nearly descended into civil war instead of a multi-racial democracy, Montana Rep. Zooey Zephyr sues over her removal from House floor, The guy who ate a $120,000 banana in an art museum says he was just hungry, Arkansas woman pleads not guilty to selling over 20 boxes of stolen human body parts, A decoder that uses brain scans to know what you mean mostly, Latest on Ukraine: May Day's another war day as Russia strikes Ukrainian cities. We find it is critically important to analyze the overall impact of this investment on both customer rates and reliability, and that [for this specific expense] the instant record is currently lacking in both regards, the SCC said in its order. Keep it Clean. The examiner also recommended that if the Virginia SCC did not ultimately grant Appalachian Power approval of the ELG investments, the regulatory body should delay consideration of the reasonableness and prudency of previously incurred ELG costs until a future case., While AEP has made a major effort to pare down its reliance on coal powerkeeping with ambitions it announced in September 2019. Threats of harming another Both states commissions will consider AEPs proposal later this month. Curtis Tate/West Virginia Public Broadcasting Appalachian Power and Wheeling Power did not prudently manage their coal supplies in 2021 and 2022, leading to shortages of fuel and higher electricity costs, a consulting group has concluded. The plants must be in compliance to operate beyond 2028. Source: S&P Global Market Intelligence Your e-mail address will be used to confirm your account. The John E. Amos Power Plant near Winfield, West Virginia, is being studied for early retirement, along with the Mountaineer Power Plant near New Haven, West Virginia. Our Management needs improving. We told the Virginia SCC that making the environmental investments for both CCR and ELG compliance at Amos and Mountaineer plants is more beneficial for customers than making only the CCR compliance investments, retiring the plants in 2028, and finding replacement capacity, she said. The 300-mile pipeline would transport 2 billion cubic feet a day of natural gas from northern West Virginia to the mid-Atlantic. And even 2030 is feeling optimistic at this point, for sure.. Mayor Kay Summers of Clendenin, West Virginia, says she's haunted by the historic 2016 flood that nearly wiped out her town but still skeptical of the science around climate change. Other than in their local communities, the loss of Sporn and Kanawha River were barely noticed. At the Virginia SCC, Appalachian Power had argued its proposed investments for specific projects at the Amos and Mountaineer plants were the most cost-effective means of compliance with the federal CCR and ELG rules. The Tennessee Valley Authority, shuttered the Paradise Fossil Plant in Western Kentucky. And so its a tough spot if you own these utilities, he said, so I understand why theyre struggling to think about what their options are.. And so it's a tough spot if you own these utilities, he said, so I understand why they're struggling to think about what their options are.. Appalachian Power and Wheeling Power did not prudently manage their coal supplies in 2021 and 2022, leading to shortages of fuel and higher electricity costs, a consulting group has concluded. News & Technology for the Global Energy Industry. Martins analysis suggested that [t]he cumulative net cost of an Amos-only early retirement reaches a peak $880 million, and the Amos and Mountaineer early retirement net cost impact reaches $1.55 billion by 2039. These costs anticipate the quick installation of new resources that would be required to replace the plants combined 4.2-GW capacity, his testimony suggested. Communities in the heart of Appalachia are some of the most vulnerable in the country to the impacts of a warming global climate, according to government scientists, and among the most resistant to government-led efforts to blunt the impacts. , encouraging a shift toward cleaner energy. The cost of wind and solar have plummeted in recent years. But while the SCC moved to approve AEPs recovery of costs related to the federal Coal Combustion and Residuals (CCR). We strive to take advantage of opportunities to beneficially reuse as much CCR material as possible. ", 24/7 coverage of breaking news and live events. The ceremony took place in front of a packed room at the John Amos Power Plant in Putnam County. "They want to make rules but they don't understand because they don't walk in those shoes," Mayor Summers said of EPA regulators. Appalachian Power is proposing several options including making the pollution control modifications to all three plants or closing Mitchell by 2028 and making the modifications to John Amos. Manchin rails against Biden's clean energy plans as he faces tough If we instead retired one or both of the plants, we would have to spend billions of dollars on replacement capacity much earlier than necessary. You have permission to edit this article. But one of the reports authors predicts they wont last to the end of this decade. Both were smaller, older plants that didnt produce enough power to justify the investment needed to meet modern environmental standards. Jaffe, of the Sierra Club, said she expects that if Kentucky and Virginia deny AEPs request, the company would come back to the commission in West Virginia asking for another surcharge. West Virginia Attorney General Patrick Morrisey is leading a group of 18 states suing the Biden administration over the Environmental Protection Agency's authority to regulate greenhouse gas emissions under the Clean Air Act. Well determine the best path forward to meet the resource needs in each state, and return to the commissions if necessary for consideration of our updated costs and plans., Entergy: Hurricane Ida Took Out Eight Critical High-Voltage Transmission Lines, Drought-Crippled Hoover Dam, Glen Canyon Hydropower Plants Operating at Substantially Decreased Capacity, 3D Printing: More Than Just a Cool Process, It Offers Real Benefits. Now comes the hard part as Putnam and Mason counties wait for the study results and for the involved interest groups the bureaucracy, politicians, environmental groups, the coal industry and others to weigh in and prepare for battle. Buy Now. Low 43F. We won't share it with anyone else. As POWER has reported, however, plant economics are a major factor in AEPs spate of recently announced closures. Chance of rain 70%. This is Congress's decision to make, not the EPA.". Well determine the best path forward to meet the resource needs in each state, and return to the commissions if necessary for consideration of our updated costs and plans.. Whether they close in 2028, 2040 or sometime between, the three plants will leave a void in the surrounding communities. As both sides brace for a decision by the Supreme Court, environmental advocates say they fear for the worst. Create a password that only you will remember. In separate December 2020submitted cost recovery filings with regulators in West Virginia and Kentucky, two other AEP subsidiariesWheeling Power and Kentucky Powerhad also sought cost recovery for CCR and ELG investments for another West Virginia coal plant, AEPs 1,560-MW, The West Virginia Public Service Commission (WVPSC) on Aug. 4 ultimately approved cost recovery for both CCR and ELG investments at all three plantsAmos, Mountaineer, and Mitchell. content The company sought recovery of an estimated $240 million investment to ensure both plants will be in compliance with both federal rules. Closing the Amos plant alone in 2028 could save $1.4 billion, the Sierra Club's analysis found. Other than in their local communities, the loss of Sporn and Kanawha River were barely noticed. The SCCs order, notably, adopts nearly all findings and recommendations contained in a July 2021 report issued by a Virginia senior hearing examiner. If you forget it, you'll be able to recover it using your email address. In the meantime, the organization calls for reforms to power markets that would support coal through mechanisms such as crediting plants for reliability and resilience. The problem isn't AEP, it's within our own company, AUS. Its impact on the. At the start of 2015, the nation's coal fleet totaled 285.6 GW of capacity, according to Market Intelligence data. The order also directs Kentucky Power to provide the journal entries recorded when Kentucky Power acquired Mitchell and Mitchells remaining net book value, including all plant accounts and asset retirement obligations, as of the most recent month for which records are available, the PSC said in a statement. West Virginia Coal Plants Need Upgrades. Three States Will Decide Their that the ELG investment is reasonable and prudent, including from an economic or a resource adequacy perspective. Still, the SCC allowed Appalachian Power to provide more analyses and evidence to support the ELG investment. CreditSights analyst Andrew DeVries said industry observers are expecting an acceleration of coal plant retirements under U.S. President Joe Biden and following the recent "ugly PJM auction" results. Retiring a large power plant requires the approval of several parties. It predicts Mountaineers single unit would shut down in three years. "I think we need coal until we have enough, you know, until they figure out an alternate source," said Ricky Brookover, a union boilermaker who works overnight installing upgrades at the Amos facility. Matt Bevin and former President Donald Trump. On July 26, meanwhile, the Biden administration initiated a supplemental rulemaking to strengthen certain discharge limits in the ELG rule. They're not very efficient at turning coal into power, Holladay said, and new, more efficient technologies coming down the grid and kind of eating their lunch.. The John Amos power station in West Virginia. American Electric Power's coal-fired John E. Amos Power Plant in Winfield, West Virginia. Your account has been registered, and you are now logged in. Management has assessed technology additions and retrofits to comply with the rule and the impacts of the Federal EPAs recent actions on facilities wastewater discharge permitting for FGD wastewater and bottom ash transport water. Permit modifications for affected facilities were filed in January 2021 that reflect the outcome of that assessment, AEP said. The company has 5,665 megawatts of renewable energy projects in progress. Part of the costs will be passed on to ratepayers. But one of the reports authors predicts they wont last to the end of this decade. Theyve also embraced renewables. Virginia customers would bear the costs of this unprecedented capacity overhaul., Appalachian Power now faces a complex situation. September 21, 2020 - 12:45 am The largest electric utility in West Virginia has entered into an agreement with an environmental group that coal industry officials fear could lead to the shutdown of. Slated retirements to cut US coal fleet to less than half 2015 capacity by 2035, IR In Focus | Episode 4: Insights to Navigate Investor Activism, Masters of Risk | Episode 2: A Discussion with Ilya Khaykin, According to Market Intelligence, April 2023, The 2,900-MW John E. Amos coal-fired power plant near Charleston, W.Va., has been producing power since the early 1970s.
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