Report Predicts 3 Coal Plants Could Close Within 5 Years Appalachian Power president says closing Mitchell plant would save "Keeping coal in the mix supports grid reliability and resilience, helps keep electricity prices affordable, provides fuel security and serves as an insurance policy when other electricity sources are not available or are too expensive.". As of June 30, Appalachian Power estimated its total ELG investment capital work in progress(CWIP) balances at both plants amounted to $28 million. In that report, the examiner recommended that the SCC should approve only recovery of CCR-related costs. Shutting down either plant would be hard on the economies of their local communities, not to mention the West Virginia coal industry in general. Click #isupportlocal for more information on supporting our local journalists. Power plant profile: John E Amos Power Plant, US - Power Technology Coal-fired plants also produce less power than theyre capable of generating. Slated retirements to cut US coal fleet to less than half 2015 capacity "Every time it rains and storms, I'm lying awake at night. AEP subsidiary Kentucky Power converted the Big Sandy power plant near Louisa, Kentucky, from coal to gas a few years ago. 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.. Depending on post working, duties vary slightly. If you're interested in submitting a Letter to the Editor, click here. 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. But you have to go through the process the right way," Morrisey said. A report by West Virginia Universitys Bureau of Business and Economic Research. Utility giant Duke Energy Corp. is among the companies accelerating coal plant retirements to meet company and North Carolina emissions-reduction goals. Until that rule is finalized, current regulations, including the 2015 and 2020 rules will be implemented and enforced, the EPA said. The SCCs order is a new setback for Appalachian Power, which has said cost recovery of CCR and ELG retrofits at the plants would allow their generating units to provide crucially needed capacity and energy value to the utilitys customers in Virginia and West Virginia through 2040. But one of the reports authors predicts they wont last to the end of this decade. Fossil fuel energy is still a mainstay in state. It may not be that simple, however. This is the name that will be displayed next to your photo for comments, blog posts, and more. I come from a community where we're seeing massive job losses, massive job losses," said Keena Mullins, co-founder and solar developer for Revolt Energy. 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. The Tennessee Valley Authority shuttered the Paradise Fossil Plant in Western Kentucky, in spite of pressure from Kentuckys then-Gov. Amos and Mountaineer are valuable to customers as capacity resources, Appalachian Power spokesperson Jeri Matheney explained to POWER on Aug. 25. Ohio Valley ReSource. None of us take that lightly, Jaffe said. Still, Holladays model says one of the three units at the Amos plant should already be taken offline because it no longer operates economically. Site of an ongoing $1 billion sulfur dioxide abatement project begun . Meanwhile, the cost of wind and solar energy has plummeted. Closing the Mitchell plant in 2028 would save $118 million, it found. [2] While large batteries are solving some of those issues, Miller said they might not be able to replace natural gas by themselves. 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. The Public Service Commission of West Virginia would have a say, and undoubtedly the governor and the Legislature would step in. 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. Aerial image of the Mountaineer plant with groundwater testing results near ash waste. However, without the John Amos Power Plant generating 2,900 megawatts of electricity, life's simplest tasks would be much harder. Even the coal-friendly West Virginia legislature approved two bills in the past two sessions to encourage the development of solar power in the state. Become a member with your gift of $1,000 or more. Theres also the delicate matter of what happens to the communities that depend on the plants for jobs and tax revenue, as well as the coal mines that supply them. Six years later, many survivors remain unmoved by the growing threat of climate change and urgent calls to curb greenhouse gasses from burning coal. Theres also the delicate matter of what happens to the communities that depend on the plants for jobs and tax revenue, as well as the coal mines that supply them. Commissioned in 1971, the plant has three coal-fired units. The West Virginia Public Service Commission must decide in the coming weeks whether to approve an environmental compliance surcharge on electricity customers. John E. Amos Power Plantis a three-unit coal-fired power plant owned and operated by Appalachian Power, a subsidiary of American Electric Power(AEP). . The plant operates three landfills and six unlined surface impoundments that were commissioned in 1971. EPA to bring back mercury pollution rules that were nixed under - CNN Those plants may not run until 2040, said Dori Jaffe, a managing attorney for the Sierra Club. A 2018 investigation by the Ohio Valley ReSource and partner station WFPL found several ash sites are leaking potentially hazardous chemicals into groundwater. The John Amos power plant in Winfield, West Virginia, burns up to 27,000 tons of Appalachian coal each day to power more than 2 million homes and businesses across 3 states. We continue to work with state agencies to finalize permit terms and conditions.. 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. More coal-fired power plants face closure as the nation transitions to cleaner sources of energy. Experts say strict limits to EPA authority could also make it impossible to cut U.S. carbon emissions in half by 2030 and entirely phase out fossil fuels like coal by 2050 -- top White House objectives. "We put so much clean energy, clean stuff on [the plant]. Please avoid obscene, vulgar, lewd, "What nobody is talking about is the fact natural gas prices are now over $3 and absent a CO2 tax, a scrubbed coal plant can come close to competing with a gas plant, so maybe coal plant retirements continue but actually slow down," DeVries said. On July 26, meanwhile, the Biden administration initiated a supplemental rulemaking to strengthen certain discharge limits in the ELG rule. 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. We will take into consideration the three commission orders and the many impacts of all possible options. They also support, directly and indirectly, 6,600 jobs. One megawatt is enough to power roughly 50,000 homes. Coal-fired power plants, including two in Pa., to close after new Thats what were seeing. Moodys Investors Service forecast in 2019 that coal would be only 11% of electric power generation by 2030. Click here to explore our interactive coal ash map >>. Steam Electric Effluent Limitations Guidelines (ELG) rule. If an agreement is reached, Mon Power ratepayers will pay a $3 million a month surcharge to keep the plants 146 employees working and the plant in operating condition. Both are owned and operated by Appalachian Power, a subsidiary of American Electric Power, and both burn coal to generate electricity. 2 Logan to 8-7 win over No. They are also the front line in a landmark environmental case before the U.S. Supreme Court, which will decide this spring how much authority the Environmental Protection Agency has to regulate earth-warming emissions from coal-fired power plants. And if it means raising our utility bills a little bit, so be it.. 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. 1 Winfield, Chapmanville picks up 7-3 road win at Scott, Chapmanville K-9 handler no longer employed with police department, Two women accuse State Trooper of kidnapping and rape in Logan, Man baseball rolls visiting Tug Valley 12-0, Messer throws no-hitter, Charleston attorney wins case against My Pillow founder, who's been ordered to pay $5M to contest winner. Our next steps will be to evaluate our options in light of those orders, 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, a spokesperson said. Closing the Mitchell plant in 2028 would save $118 million, it found. According to direct testimony submitted to the SCC earlier this year by. Both were smaller, older plants that didnt produce enough power to justify the investment needed to meet modern environmental standards. Coal is falling out of favor to lower-carbon or no-carbon sources of electric power in an effort to curb greenhouse gas emissions and slow climate change. Browse TV Schedule | Find WVPB Television, View Radio Schedule | Find Your Stations. Copyright 2023 West Virginia Public Broadcasting, All Rights Reserved, Report Predicts 3 Coal Plants Could Close Within 5 Years, Grief Rituals And The Alabama Astronaut, Inside Appalachia, The West Virginia Public Service Commission, Report: AEP Companies Coal Management Practices Led To Shortages At 3 Power Plants, Why Keeping Pleasants Idle Doesn't Add Up For State, Local Government, PSC Approves Proposal To Keep Pleasants Power Station From Closing, Granholm Letter Supports Fast Approvals For Mountain Valley Pipeline. It has been developed in multiple phases. Source: S&P Global Market Intelligence 2 Logan, Walk-off hit by Brumfield sends No. While the extreme flood that submerged Clendenin was exceptional, government and academic climatologists warn that the threat of extreme rain events is growing across West Virginia, which already ranks third in the country in flooding disasters over the last 70 years. 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. John Amos Power Plant saves time, money in coal offload process According to Appalachian Powers testimony, the Virginia jurisdictional share of the ELG investments would be about $60 million. For now, that would mean natural gas. A final decision should be coming in the next several weeks. "It's incredibly difficult for many of these plants to compete with the new generation coming from advanced combined cycle plants for natural gas or some of the new utility-scale solar," said Brian Lego, an economic forecaster at West Virginia University's Bureau of Business and Economic Research. She says the legal fight over coal draws attention from a need to diversify the state's energy portfolio. The CCR-only option at Amos and Mountaineerwhich anticipates both plants would retire by 2028would cost a total $72.7 million at Amos (including $52.1 million in capital costs, $3.7 million in other charges, and $16.9 million in asset retirement obligation [ARO] costs), and $52.1 million for the Mountaineer plant (including $19.3 million in capital costs, $3.4 million in other charges, and $29.5 million in ARO costs). Both are . We had more snow when I was a kid. Amos and Mountaineer are valuable to customers as capacity resources,, Appalachian Power spokesperson Jeri Matheney explained to. The Public Service Commission of West Virginia (PSC) approved Appalachian Power Co. (APCo) and Wheeling Power Co.s (WPCos), Just two weeks after FirstEnergy Corp. said it would close more than 2 GW of six older coal-fired, American Electric Power, one of the premier generating utilities in the U.S., is caught between a deregulated rockwholesale, 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. additional options for reusing and discharging small volumes of bottom ash transport water, provides an exception for retiring units and extends the compliance deadline to a date as soon as possible beginning one year after the rule was published but no later than December 2025, the company said in late July. The 2,900-MW John E. Amos coal-fired power plant near Charleston, W.Va., has been producing power since the early 1970s. Appalachian Power and Wheeling Power have told state regulators that 2028 is the earliest date the plants would close, three years after Holladays model forecasts they could close. . Our unique approach, utilizing dredging and concave contouring, reduced closure time and costs to rate payers. found several ash sites are leaking potentially hazardous chemicals into groundwater. "The question is, what replaces coal generation?". ABC News. At Amos, Appalachian Power has proposed to modify the bottom ash handling system (to prevent discharge of bottom ash transfer water), as well as install two new ash bunkers. The continued fall of coal in the U.S. will likely be steeper than most people think, said Robert Godby, an energy economist and dean at the University of Wyoming. The outcome could dramatically shape the future of coal-dependent communities like Clendenin and the coal-fired power plants that employ thousands of workers but also generate millions of tons of greenhouse gas emissions every year. accounts, the history behind an article. Do Not Sell or Share My Personal Information. American Electric Power, one of the nation's largest utilities which owns the John Amos facility, granted ABC News Live rare access to see firsthand how its workforce of up to 1000 full-time and contract workers generate enough power for two million homes and businesses across three states. This is Congress's decision to make, not the EPA.". All Rights Reserved. The plant employs around 300 people with . Litigation has complicated that plan, but EPA expects to unveil a new approach this summer. Since then, the agency has attempted to enact new limits on power plant carbon dioxide emissions, a primary driver of global warming. This pond has been capped and was closed at the end of 2017. ", 24/7 coverage of breaking news and live events. WV Educational Broadcasting Authority, the WVPB Foundation, and the Friends of WVPB. 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. For bottom ash transport water, it revised the 2015 rules zero-discharge limitations. 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. Your purchase was successful, and you are now logged in. When AEP has built new fossil fuel-powered plants in recent years, they have been gas burners. Whether they close in 2028, 2040 or sometime between, the three plants will leave a void in the surrounding communities. A carbon tax puts a price on climate-changing greenhouse emissions. Roughly 90% of West Virginia's electricity is generated by burning coal, well above the national average of less than a quarter coal-powered energy, according to the U.S. Energy Information Administration. The model predicts one of Mitchells two units would close in two years, and the other in three. The plants three units were completed between 1971 and 1973. The company sought recovery of an estimated $240 million investment to ensure both plants will be in compliance with both federal rules. "It's weather all over, you know what I mean. "To allow un-elected bureaucrats just to decide under the guise of good government that's not right. Brookover, a 41-year-old father whose family has deep ties to the coal industry, says he doesn't oppose the EPA but questions a drive to address a climate crisis he doesn't see. Sonal Patelis a POWER senior associate editor (@sonalcpatel,@POWERmagazine). Appalachian Power is a subsidiary of American Electric Power, which is based in Columbus, Ohio. Mullins runs West Virginia's largest commercial solar installation in the shadow of the John Amos power plant. Be Nice. The coal it does not consume will not generate severance tax revenue for state and local government. A report published by the National Bureau of Economic Research shows that the John Amos, Mountaineer and Mitchell plants will no longer be economical to operate in five years. From that year through 2020, power companies retired 95 gigawatts of that power, nearly a third. Rain showers this evening with overcast skies overnight. Last year, Morgan Stanley went further and predicted there would be no coal producing electricity by 2033. 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. For FGD wastewater, the 2020 rule established numeric BAT effluent limitations on mercury, arsenic, selenium, and nitrate/nitrite. Appalachian Power spokesperson Matheney on Wednesday reiterated this point, underscoring the tight timeframe in which new replacement capacity will be needed if Amos and Mountaineer were retried earlier than planned. Fate Of West Virginia Coal Plants May Rest With Virginia Regulators It is possible that West Virginia customers could have to cover the costs of the entire retrofits for all three plants, she said. If the commission denies the request to upgrade the three plants, they would close in 2028. 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. 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. "It's really a tough space for many of these plants to operate in.". The problem isn't AEP, it's within our own company, AUS. Both have another 20 years of service, more or less. Coal's share of electrical power generation in the state declined from nearly half in 2010 to 10% last year, with operators taking advantage of a statewide boom in natural gas drilling in the . Editorial: Two power plants' future becomes uncertain The demand for electricity is flat, even factoring in the pandemic. Don't knowingly lie about anyone Coal produced 40% of the nations electricity a decade ago, compared with 20% in 2020. In the mid-2000s, EPA regulations forced many U.S. power plants to invest in upgrading smokestacks with scrubbers that remove nearly all sulfur dioxide -- a pollutant that can harm human health and contribute to acid rain. A carbon tax puts a price on climate-changing greenhouse emissions, encouraging a shift toward cleaner energy. that is degrading to another person. Both states commissions will consider AEPs proposal later this month. Plans include retrofitting economizer ash handling systems on Amos 1 and 2 and installing a new FGD biological treatment system with ultrafiltration. The John Amos plant was included in this list, as it has not been inspected by the state in at least 10 years. Amos Plant - Global Energy Monitor They plan on retiring another 25 gigawatts through 2025. Sign up for regular updates from the Ohio Valley ReSource. Adding another level of complexity are the changing federal rule requirementsas new administrations take the helm in Washington, D.C. Have the latest local news delivered every afternoon so you don't miss out on updates. We have many factors to consider, Matheney said. Submitting this form below will send a message to your email with a link to change your password. Sign up for the Ohio Valley Resource newsletter. 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. West Virginia Coal Plants Need Upgrades. Three States Will Decide Their 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. Be Truthful. or anything. Recent months have seen a fresh round of new and accelerated retirement announcements driven by utilities adopting new climate policies and goals, said Seth Feaster, a data analyst at the Institute for Energy Economics and Financial Analysis. Like, when you see the white smoke coming out of the stacks, it's clean.". Working at John Amos Power Plant: 4 Reviews - Indeed 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. It is located in West Virginia, the US. A final decision should be coming in the next several weeks. These Coal Plants Need Upgrades. Three States Will Decide Their Fate - WKMS Share with Us. Winds WSW at 10 to 15 mph. Low 48F. 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. Your e-mail address will be used to confirm your account. Absolutely. Theyve also embraced renewables. John E Amos Power Plant is a 2,932.6MW coal fired power project. 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. . Holladay says the utilities may choose to keep them open and lose money. Create a password that only you will remember. At Amos, Appalachian Power has proposed to modify the bottom ash handling system (to prevent discharge of bottom ash transfer water), as well as install two new ash bunkers. Twenty-eight percent of active coal-fired power plants are set to be retired by 2035. We won't share it with anyone else. Coal, one of West Virginia's most lucrative exports, is used to generate a disproportionately high amount of the state's electricity, around 90%, according to the Energy Information Administration. Still churning electricity to West Virginia and beyond Ohio-based AEP has one other plant among the top 10, the John Amos Plant in West Virginia, which has a generation cost of $39 per megawatt-hour. The ruling means the Mountaineer, Mitchell and John Amos power plants will be able to continue operations until at least 2040. 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.. The other two would close in five years. The 300-mile pipeline would transport 2 billion cubic feet a day of natural gas from northern West Virginia to the mid-Atlantic. If you forget it, you'll be able to recover it using your email address. Shutting down either plant would be hard on the economies of their local communities, not to mention the West Virginia coal industry in general. Keena Mullins, co-founder of Revolt Energy, says solar power has a future in West Virginia if policymakers move to diversify the state's energy portfolio. "We just haven't gotten there yet.". John E. Amos Pond Closure - Stantec Still, power customers will have to pay those costs whenever the plants shut down. The Kentucky PSCs new order, notably, directs Kentucky Power to explain Wheeling Power and Kentucky Powers plans regarding the Mitchell plant by submitting status reports every ten days. Regulators also required Kentucky Power to explain the impact of the conflicting ELG decisions by the West Virginia and Kentucky PSCs on AEPs strategic review of Kentucky Powers assets. Had natural gas not become so plentiful and inexpensive, one or both might still be operating. Invalid password or account does not exist. Plans include retrofitting economizer ash handling systems on Amos 1 and 2 and installing a new FGD biological treatment system with ultrafiltration. The model predicts one of Mitchells two units would close in two years, and the other in three. They also support, directly and indirectly, 6,600 jobs. While AEP has made a major effort to pare down its reliance on coal powerkeeping with ambitions it announced in September 2019that it would seek to go net-zero by 2050as of June 30, the AEP system held 12.1 GW of coal-fired capacity, which is still nearly half its total capacity of 24.7 GW. The company has 5,665 megawatts of renewable energy projects in progress. As POWER has reported, however, plant economics are a major factor in AEPs spate of recently announced closures. Wheeling Power and Kentucky Powers plans regarding the Mitchell plant by submitting status reports every ten days. Regulators also required Kentucky Power to explain the impact of the conflicting ELG decisions by the West Virginia and Kentucky PSCs on AEPs strategic review of Kentucky Powers assets. Chance of rain 50%.. "Utilities will have to find a way to manage that risk," Miller said. 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. It is owned and operated by Appalachian Power Company (APCO). 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. Plant continues to churn out power | News | herald-dispatch.com "I grew up in coal country. the commission denied about $4.2 million of expenses AEP had proposed for projects that would help the plants comply with the ELG rule. You all probably know that John Amos was a director for AEP and a native West Virginian. Meanwhile, the cost of wind and solar energy has plummeted. expenses from AEPs Virginia customers associated with federal rules regulating the disposal of coal ash at the two plants in West Virginia. Other than in their local communities, the loss of Sporn and Kanawha River were barely noticed. News & Technology for the Global Energy Industry.