RALEIGH, N.C., Dec 01, 2009 /PRNewswire-FirstCall
Progress Energy Carolinas, a wholly owned subsidiary of Progress Energy
(NYSE: PGN), today announced that by the end of 2017, the company
intends to permanently shut down all of its remaining N.C. coal-fired
power plants that do not have flue-gas desulfurization controls
(scrubbers).
(Logo: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c )
In a report filed with the N.C. Utilities Commission today, the utility
outlined its plan to close a total of 11 coal-fired units, totaling
nearly 1,500 megawatts (MW) at four sites in the state:
- The 600-MW L.V. Sutton Plant near Wilmington.
- The 316-MW Cape Fear Plant near Moncure.
- The 172-MW W.H. Weatherspoon Plant near Lumberton.
- And the 397-MW H.F. Lee Plant near Goldsboro (retirement announced in
August).
The commitment represents about 30 percent of the company's coal-fired
power generation fleet in North Carolina. It will result in significant
emission reductions, including carbon dioxide, sulfur dioxide, nitrogen
oxides, mercury and other pollutants.
"Progress Energy's announcement is important for North Carolina's air
quality," said N.C. Gov. Bev Perdue. "The transition toward cleaner
sources of energy is good for the environment and the economy."
Progress Energy Carolinas has announced a plan to build new generation
fueled by natural gas in Wayne County, N.C., and expects to announce
additional gas plans in the near future. The company will continue to
operate three coal-fired plants in North Carolina after 2017. The
company has invested more than $2 billion in installing state-of-the-art
emission controls at the 2,424-MW Roxboro Plant and the 742-MW Mayo
Plant, both located in Person County, and the 376-MW Asheville Plant in
Buncombe County. Emissions of nitrogen oxides, sulfur dioxide, mercury
and other pollutants have been reduced significantly at those sites.
Resource planning is a continuous process. The plans outlined today are
based on certain assumptions about anticipated environmental
requirements. Should those assumptions change, the utility's plans might
also change.
"This is a significant commitment to clean air in our state and a major
down-payment on our company's carbon-reduction strategy," said Bill
Johnson, chairman, president and CEO-Progress Energy. "Within seven
years, we expect to retire nearly one-third of our coal fleet in North
Carolina. We are aggressively pursuing a balanced solution for meeting
future energy needs, including clean technologies and energy efficiency
while continuing to ensure that electricity remains available and
reliable 24 hours a day, seven days a week, for the 1.5 million
households and businesses that depend on us."
"These plants and their employees have been an important part of our
ability to meet the state's electricity needs for more than a
half-century," said Lloyd Yates, president and CEO for Progress Energy
Carolinas. "They were the backbone of the system and operated largely
behind the scenes to make sure that when our customers flipped the
switch, the lights came on.
"Coal-fueled generation will continue to be vital to our ability to meet
customer electricity needs," Yates said. "But as environmental
regulations continue to change, and as even more significant rule
changes appear likely in the near future, the costs of retrofitting and
operating these plants will increase dramatically. We believe this is
the right decision for our customers, our state and our company."
Installing emission controls on older, smaller coal-fired units is
expensive, including hundreds of millions of dollars per unit for
flue-gas desulfurization equipment (scrubbers) and additional expense
for other technologies. Current and expected legislation affecting
various pollutants will continue to increase the cost of coal-fired
generation, particularly at smaller, older plants.
The plan filed today was in response to a request by the N.C. Utilities
Commission. The regulatory agency ordered the company to provide its
retirement plans related to "unscrubbed" coal-fired units in North
Carolina. The request was part of the commission's approval in October
of Progress Energy Carolinas' plan to build a 950-MW power plant, fueled
by clean-burning natural gas, in Wayne County, N.C.
The plan filed today confirms the company's decision to retire the Lee
Plant in 2013. Additionally it provides tentative schedules for other
retirements:
- The company expects to retire the coal-fired Sutton Plant in 2014. The
plant has three units that came online in 1954, 1955 and 1972. In the
coming weeks, the company will seek approval from state regulators to
build a natural gas-fueled plant of approximately the same size as the
current coal plant (600 MW) at the Sutton site, located on the Cape Fear
River near Wilmington. Due to the location of the plant at the far
eastern end of Progress Energy's electric system, the company must
replace the generation in the same area to maintain system reliability.
- The company's Cape Fear and Weatherspoon plants have a total of five
coal units (most built in the 1950s). The company plans to retire the
units between 2013 and 2017. Due to the sites' existing infrastructure
and proximity to renewable fuel sources (such as wood waste), the
company is evaluating the possibility of converting a portion of the
total capacity (50 to 150 MW) to use biomass. Progress Energy and other
utilities in North Carolina must provide increased amounts of renewable
energy under a state law passed in 2007. Biomass is the state's most
plentiful renewable resource.
The company also is evaluating the potential for a future use of the
Cape Fear and Weatherspoon plant sites for natural gas-fueled
generation. No decisions have been made regarding specific retirement
dates or biomass or gas conversion.
Progress Energy Carolinas employs about 260 people at the four
coal-fired plants included in today's report. The company is working to
ensure that as many as possible will have jobs at the new gas-fueled
power plants or opportunities to move to other positions at company
facilities during the multi-year transition period.
Progress Energy Carolinas maintains a mix of resources and options -
nuclear, natural gas, coal, hydroelectric, solar, biomass and energy
efficiency. The balance helps make the company and state more energy
independent and minimizes the risk of volatility in price and supply for
any single fuel source.
Progress Energy Carolinas' 174-MW Robinson Plant in South Carolina is
not affected by today's announcement.
Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a
Fortune 500 energy company with more than 22,000 megawatts of generation
capacity and $9 billion in annual revenues. Progress Energy includes two
major electric utilities that serve approximately 3.1 million customers
in the Carolinas and Florida. The company has earned the Edison Electric
Institute's Edison Award, the industry's highest honor, in recognition
of its operational excellence, and was the first utility to receive the
prestigious J.D. Power and Associates Founder's Award for customer
service. The company is pursuing a balanced strategy for a secure energy
future, which includes aggressive energy-efficiency programs,
investments in renewable energy technologies and a state-of-the-art
electricity system. Progress Energy celebrated a century of service in
2008. Visit the company's Web site at www.progress-energy.com.
SOURCE Progress Energy Carolinas
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