"The only question now is the glide path and how steep it is," Godby said. estimated the states power plants account for $4.8 billion in direct output, $725 million in wages and $97.3 million tax in revenue. 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. Aerial image of the Mitchell plant with groundwater testing results near ash waste. The 300-mile pipeline would transport 2 billion cubic feet a day of natural gas from northern West Virginia to the mid-Atlantic. Please avoid obscene, vulgar, lewd, Appalachian Power is supposed to report the results of its study before the end of 2022. 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. Aerial image of the Mountaineer plant with groundwater testing results near ash waste. Coal-fired power plants peaked at 314 gigawatts of electricity in 2011, according to the U.S. Energy Information Administration. A report by West Virginia Universitys Bureau of Business and Economic Research estimated the states power plants account for $4.8 billion in direct output, $725 million in wages and $97.3 million tax in revenue. In a statement to POWER this week, however, Appalachian Power said that a number of options still exist for the two plants, given that regulators in West Virginia recently approved cost recovery at CCR and ELG investments at both plants. 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. Regulations drove some retirements, such as a wave of 2015 closures related to the U.S. Environmental Protection Agency's Mercury and Air Toxics rule. This full-time position is located at the John Amos Power Plant in Winfield West Virginia. 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. The plants are aging. Other than in their local communities, the loss of Sporn and Kanawha River were barely noticed. We have many factors to consider, Matheney said. If you forget it, you'll be able to recover it using your email address. 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. For now, that would mean natural gas. After the closure, a series of channels drained the former pond site, connecting to an . 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. Closing the Mitchell plant in 2028 would save $118 million, it found. Three States Will Decide Their Fate. The organization supports technologies like carbon capture and storage, even though it may take time before that is developed and deployed at a larger scale. For more than four decades, the plant, now Appalachian. power station. It is located in West Virginia, the US. The model predicts one of Mitchell's two units would close in two years, and the other in three. "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. Both are . File photo/HD Media Litigation has complicated that plan, but EPA expects to unveil a new approach this summer. As of June 30, Appalachian Power estimated its total ELG investment c. ) balances at both plants amounted to $28 million. Carbon Capture The big game changer, however, could be a tax on carbon. Cloudy with showers. AEP subsidiary Kentucky Power converted the Big Sandy power plant near Louisa, Kentucky, from coal to gas a few years ago. Appalachian Power is supposed to report the results of its study before the end of 2022. For Appalachian Power and Wheeling Power, the plans show that both American Electric Power subsidiaries will continue to rely on the John Amos, Mitchell and Mountaineer coal-fired plants. With new environmental rules looming this week, coal-driven power plants are closing all over the . All three West Virginia plants must comply with the U.S. Environmental Protection Agencys rules for the disposal of ash from burning the coal and the wastewater generated by the plants. Last year, Morgan Stanley went further and predicted there would be no coal producing electricity by 2033. Meanwhile, the cost of wind and solar energy has plummeted. Steam Electric Effluent Limitations Guidelines (ELG) rule. The SCCs order, notably, adopts nearly all findings and recommendations, contained in a July 2021 report issued by a, . 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'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.. 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. Appalachian Power said it could decide to close the John Amos and Mountaineer power plants in 2028 if the Virginia Corporation Commission denies its request to make upgrades to them. Theyve also embraced renewables. And while that order would have meant Mitchell will need to cease operations in 2028, the PSC on Aug. 19 issued another order granting Kentucky Powers request for a partial rehearing of the July 15 order. 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. Rain ending early. The coal it does not consume will not generate severance tax revenue for state and local government. 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. According to direct testimony submitted to the SCC earlier this year by. It sold the Gavin plant at Cheshire, Ohio, a few years ago, and it has announced plans to reduce output at its large plant at Rockport, Indiana. or anything. Coal produced 40% of the nations electricity a decade ago, compared with 20% in 2020. Shutting down either plant would be hard on the economies of their local communities, not to mention the West Virginia coal industry in general. Holladay says his model is mostly accurate, though he noted that the model cant know every specific circumstance surrounding each plant. 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. Because the power generated by the plants supplies other states, AEP is seeking approval for the plan from the state public service commissions in Kentucky and Virginia. According to Appalachian Powers testimony, the Virginia jurisdictional share of the ELG investments would be about $60 million. The other two would close in five years. This pond has been capped and was closed at the end of 2017. This week on Inside Appalachia, we speak with an author about grief rituals, a podcaster about the religious music of snake handling churches, and we explore best practices to prepare for retirement. 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. If the commission denies the request to upgrade the three plants, they would close in 2028. "We just haven't gotten there yet.". The company sought recovery of an estimated $240 million investment to ensure both plants will be in compliance with both federal rules. The Tennessee Valley Authority shuttered the Paradise Fossil Plant in Western Kentucky, in spite of pressure from Kentuckys then-Gov. "Utilities will have to find a way to manage that risk," Miller said. Site of an ongoing $1 billion sulfur dioxide abatement project begun . Meanwhile, the cost of wind and solar energy has plummeted. Adding another level of complexity are the changing federal rule requirementsas new administrations take the helm in Washington, D.C. - February 4, 2022. Moodys Investors Service forecast in 2019 that coal would be only 11% of electric power generation by 2030. It's one of 174 coal-fired plants nationwide that could be impacted by the Supreme Court's decision. 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. to approve $317 million to pay for the retrofits to keep the plants operating until 2040. According to GlobalData, who tracks and profiles over 170,000 power plants worldwide, the project is currently active. The. The company sought recovery of an estimated $240 million investment to ensure both plants will be in compliance with both federal rules. Both have another 20 years of service, more or less. We will take into consideration the three commission orders and the many impacts of all possible options. 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. But in its order on Monday, the SCC said Appalachian Power had failed to meet its burden of proving 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. 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. 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. "It's weather all over, you know what I mean. 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. 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. Holladay says his model is mostly accurate, though he noted that the model cant know every specific circumstance surrounding each plant. All Rights Reserved. They want to have clean water. Still, Holladays model says one of the three units at the Amos plant should already be taken offline because it no longer operates economically. Winds WSW at 10 to 20 mph. Amos and Mountaineer are valuable to customers as capacity resources,, Appalachian Power spokesperson Jeri Matheney explained to. Your e-mail address will be used to confirm your account. 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). "We can't continue to risk everything for energy, you know, I mean coal keeps the lights on, they say, but at what cost?". 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. Click here to stay informed and subscribe to Herald-Dispatch. They generated the electricity for homes around the Ohio Valley. each comment to let us know of abusive posts. Closing the Mitchell plant in 2028 would save $118 million, it found. It sold the Gavin plant at Cheshire, Ohio, a few years ago, and it has announced plans to reduce output at its large plant at Rockport, Indiana. 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. Both are owned and operated by Appalachian Power, a subsidiary of American Electric Power, and both burn coal to generate electricity. With a nameplate rating of 2,933 MW,[1]it is the largest generating plant in the AEP system. The Tennessee Valley Authority, shuttered the Paradise Fossil Plant in Western Kentucky. 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. 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. This is the name that will be displayed next to your photo for comments, blog posts, and more. 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. Energy companies nationwide, including American Electric Power, have slowly been transitioning to cheaper alternatives to coal. 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. News & Technology for the Global Energy Industry. 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. Keep it Clean. 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. The company wants to spend $250 million on wastewater treatment projects at the coal-burning plants to bring them into compliance with federal environmental rules. Appalachian Power, the AEP subsidiary that owns the two plants. Thats what were seeing. PLEASE TURN OFF YOUR CAPS LOCK. In that report, the examiner recommended that the SCC should approve only recovery of CCR-related costs. Submitting this form below will send a message to your email with a link to change your password. The West Virginia Public Service Commission must decide in the coming weeks whether to approve an environmental compliance surcharge on electricity customers. The rules require power plants to reduce. Have the latest local news delivered every afternoon so you don't miss out on updates. Das Naes Unidas 14401, Torre Hotel Chcara Santo Antnio So Paulo, BR-SP. It may not be that simple, however. Sonal Patelis a POWER senior associate editor (@sonalcpatel,@POWERmagazine). A couple of large coal-fired power plants in this area could be retired ahead of schedule. /marketintelligence/en/news-insights/latest-news-headlines/slated-retirements-to-cut-us-coal-fleet-to-less-than-half-2015-capacity-by-2035-65741012 As part of a deal to secure a rate increase in Virginia, Appalachian Power has agreed to examine what would happen if the John Amos Power Plant in Putnam County and the Mountaineer Power Plant in Mason County were taken out of service ahead of schedule. 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. latest-news-headlines Click here to explore our interactive coal ash map >>. Neither is old for a coal-fired power plant, with Amos having begun service in 1971 and Mountaineer in 1980. Buy Now. Mitchell and Amos began operating in 1971, and Mountaineer in 1980. Both are owned and operated by Appalachian Power, a subsidiary of American Electric Power, and both burn coal to generate electricity. that will be taken to close the CCR unit, including identification of major milestones such as coordinating with and obtaining necessary approvals and permits . the commission denied about $4.2 million of expenses AEP had proposed for projects that would help the plants comply with the ELG rule. Former acting EPA general counsel Kevin Minoli calls West Virginia's Supreme Court challenge of EPA authority to regulate greenhouse gas emissions at power plants one of the most significant environmental cases in U.S. history. The facility operates one surface . 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. Theyve towered over the regions communities for decades. The other two would close in five years. The John Amos Power Plant, operated by American Electric Power, sits on 400 acres along the Kanawha River in Winfield, WVa. But you have to go through the process the right way," Morrisey said. A carbon tax puts a price on climate-changing greenhouse emissions, encouraging a shift toward cleaner energy. Part of the costs will be passed on to ratepayers. "The coal industry has always kept our people in the dark, and I don't look for it to change. Amos Plant is making plans to close the bottom ash pond and move the material to a lined landfill. We'll send breaking news and news alerts to you as they happen! WV Educational Broadcasting Authority, the WVPB Foundation, and the Friends of WVPB. We continue to work with state agencies to finalize permit terms and conditions.. It predicts Mountaineers single unit would shut down in three years. DTE is currently planning on closing Monroe in 2040, but has said it will study an earlier retirement date as part of its long-term plan submitted to Michigan utility regulators. But John Amos was also a Democratic National Committeeman. The John Amos power station in Putnam Co., WV. An email message containing instructions on how to reset your password has been sent to the e-mail address listed on your account. 2023 Access Intelligence, LLC - All Rights Reserved. Browse TV Schedule | Find WVPB Television, View Radio Schedule | Find Your Stations. AEP says the energy generated at the John Amos Plant is enough to power about 2 million homes. High 53F. (Nationwide less than a quarter of electricity is produced from coal.). Videos, activities & resources for every occasion. Still, power customers will have to pay those costs whenever the plants shut down. 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. 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. Use the 'Report' link on "We put so much clean energy, clean stuff on [the plant]. Close. Thats a risky investment considering the deteriorating economics of coal, said James Van Nostrand, who teaches law at West Virginia University and directs its, Center for Energy and Sustainable Development. As noted here before, the coal-fired fleet in this region is expected to reach its scheduled retirement age sometime around 2040. Close. You have permission to edit this article. But in October 2020, the Trump administration issued a final rule revising the technology-based ELGs, extending timeframes, adding subcategories, and introducing a voluntary incentive program. content 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. Request WVPB Education to attend or host an event! It seemed like there was more flooding," he said. Had natural gas not become so plentiful and inexpensive, one or both might still be operating. The John E. Amos coal-fired power plant in Poca, West Virginia. Closing the Amos plant alone in 2028 could save $1.4 billion, the Sierra Club's analysis found. And even 2030 is feeling optimistic at this point, for sure.. Appalachian Power may have used the rate process in Virginia to begin the process of accelerating its move toward natural gas and renewables at the expense of coal. 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. The regional grid operator must certify that enough power is available from other sources to meet all expected needs. Share with Us. Retiring a large power plant requires the approval of several parties. Chance of rain 90%. "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. The model predicts one of Mitchells two units would close in two years, and the other in three. 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. Logan County quartet selected for North-South All Star Basketball Classic, Former Herd star Gore hired at Western Carolina, Chapmanville baseball edges Charleston Catholic, 3-2, Scotty Browning inks with Georgetown College, Tigers, Wildcats' boys and girls tennis squads compete in Cardinal Conference tourney, Chapmanville picks up road win at Tug Valley, 10-5, Logan snaps top-ranked Chapmanville's 14-game winning streak, Cooper's no-hitter propels Man to 6-0 win in rematch against AA No. Whether they close in 2028, 2040 or sometime between, the three plants will leave a void in the surrounding communities. But I think everybody knows that those plants are closing at some point.. While large batteries are solving some of those issues, Miller said they might not be able to replace natural gas by themselves. The state relies on coal to fuel them almost more than any other state. "It's really a tough space for many of these plants to operate in.". This power plant, where we are standing here today, isliving proof that energy belongs to all of us, regardless of party labels. 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. The $317 million project would change the way the coal plants dispose of coal combustion residuals and wastewater from scrubbers that remove sulfur dioxide from plant emissions. In its written testimony, AEP says the upgrades are economically justified for the Amos and Mountaineer plants and close to neutral for the Mitchell Plant. The plant operates three landfills and six unlined surface impoundments that were commissioned in 1971. Editorial: Two power plants' future becomes uncertain. The two plants represent around two-thirds of the subsidiarys generating fleet. 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. Coal-fired power plants peaked at 314 gigawatts of electricity in 2011, according to the U.S. Energy Information Administration. A report by West Virginia Universitys Bureau of Business and Economic Research. The region's recovery from the 2016 flood -- and continued reliance on the fossil fuel economy -- illustrate the dueling human and economic stakes in West Virginia's lawsuit against the EPA. Both were smaller, older plants that didnt produce enough power to justify the investment needed to meet modern environmental standards. Security Officer (Full-time) (Current Employee) - Construction Gate for past 5 years. The state's largest coal-fired power facility -- the John Amos plant in Winfield, West Virginia -- sits 40 miles west of Clendenin along the Kanawha River. But one of the reports authors predicts they wont last to the end of this decade. "They want to make rules but they don't understand because they don't walk in those shoes," Mayor Summers said of EPA regulators. 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. It plans to retire 5,574 megawatts of coal generation from now through 2030. Coal ash disposal sites around the region pose environmental and health risks. "While the EPA does have a narrow array of authority to act in the area of carbon emissions, it's nowhere near what the Biden administration is suggesting," said West Virginia Attorney General Patrick Morrisey, a Republican, who warns thousands of jobs, industry profits, state tax revenue, and a reliable source of electricity are on the line. 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 Congressional Budget Office estimates a $25 a ton carbon tax, indexed to inflation, could raise $1 trillion over a decade. 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. 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, Alexandra Kanik illustration / Google Maps. Chance of rain 90%.. Doing the work on their wastewater systems would delay the cost of retiring the plants and finding new sources of power to replace them. Mitchell and Amos began operating in 1971, and Mountaineer in 1980. "If we were to max out every available roof space in this state and all the usable land, we may be able to reach 30 percent of powering the grid -- maybe," she said. . They've towered over the region's communities for decades. Our unique approach, utilizing dredging and concave contouring, reduced closure time and costs to rate payers. . Closures already announced by power generators will drop that figure to 136.5 GW by 2035, or about 47.8% of the size of the fleet at the beginning of 2015. Virginia customers would bear the costs of this unprecedented capacity overhaul., Appalachian Power now faces a complex situation.