Duke might retire old coal plants

Sep 1 - McClatchy-Tribune Regional News - Bruce Henderson The Charlotte Observer, N.C.

Duke Energy said today it might close seven coal-fired units at its Carolinas power plants within five years as environmental regulations intensify.

Federal regulators are expected to stiffen limits on pollutants that form smog, acid rain and haze and issue new rules for toxic mercury and coal ash, Duke said in an annual planning document filed with the N.C. Utilities Commission.

Shutting down old units can be cheaper for utilities than refitting them with new pollution controls.

Duke said it may retire by 2015 all coal-fired units for which it's not economical to install sulfur-dioxide controls called scrubbers. That would increase by 890 megawatts the coal plants Duke had planned to retire a year ago.

The retired units would be at Duke's Riverbend plant in Gaston County, Buck plant in Rowan County and Lee plant in Anderson County, S.C.

Duke said it might convert Lee from coal to natural gas fuel. Natural gas burns more cleanly than coal, and Duke expects gas prices to drop 35 percent as previously-untapped shale deposits are explored.

Duke has already agreed to retire 800 megawatts of older coal units as part of a N.C. permit to build a new 825-megawatt unit now under construction at the Cliffside plant in Rutherford County.