PSC: Too much
natural gas use
Dec 21, 2005 - Pittsburgh Post-Gazette
Author(s): Louis Hau
Dec. 21--The power-plant construction plans of Florida's major
electric utilities will leave them too heavily dependent on natural gas
as a fuel source, says a staff report from the Florida Public Service
Commission.
The report comes as natural gas prices hover near record highs amid
supply concerns because of severe winter weather in parts of the country
and production disruptions at Gulf Coast facilities after hurricanes
Katrina and Rita.
In its annual review of 10-year site plans, the PSC's Division of
Economic Regulation noted the portion of power generation to be fueled
by natural gas will surge from 30 percent in 2004 to about 44 percent in
2014. The forecast is down from the 51 percent last year because of
plans by some utilities to build coal plants, but the figure remains
high.
While natural gas, which burns more cleanly than coal, has
historically enjoyed relatively low, stable prices, the PSC report notes
"recent trends indicate an entirely different future."
Progress has opened three gas-fired generating units at its Hines
Energy Complex in Polk County since 1999 and plans to begin construction
on a fourth next year. In 2003, Tampa Electric shut down all six of its
coal-fired generating units at its Gannon power station in Tampa and
replaced them with two gas-fired units, in accordance with an agreement
to settle repeated violations of the federal Clean Air Act.
"If Florida continues down the current path of building natural
gas-fired generation, then utility fuel costs will continue to
experience volatile swings and increased prices," the PSC report said.
Information from the Associated Press was used in this report.
© Copyright 2005 NetContent, Inc. Duplication and
distribution restricted.
Visit http://www.powermarketers.com/index.shtml
for excellent coverage on your energy news front.
|