Georgia Power rethinks coal-to-biomass conversion

January 12, 2014 | By

In 2014, Georgia Power will file a request with the Georgia Public Service Commission (PSC) to decertify Plant Mitchell Unit 3 in Albany, Georgia. Further, the company will cancel the previously proposed conversion of the coal-fired unit to biomass after an extensive review and analysis deemed the conversion would not be cost effective for its customers.

Albany, Georgia. Credit: Michael Rivera/Wikimedia Commons

Albany, Georgia. Credit: Michael Rivera/Wikimedia Commons.

Since proposing the conversion to biomass in 2008, Georgia Power has worked to assess the project in light of new Environmental Protection Agency (EPA) regulations, as well as changing market and economic conditions. In addition to increased capital costs and costs related to environmental compliance, multiple other factors, such as the recent economic downturn and lower natural gas prices, have significantly reduced the project's value and benefits for customers. The company also considered switching the unit to Powder River Basin (PRB) coal or natural gas, neither of which proved viable.

Georgia Power is in the midst of a significant transition to the company's generation fleet. As part of its 2013 Integrated Resource Plan (IRP), the company received approval from the PSC to decertify and retire more than 2,000 MW of coal- and oil-fired generation at facilities across the state.

If approved, the 155 MW Plant Mitchell unit will be retired by April 16, 2015, at which time the mandatory EPA Mercury and Air Toxics Standards (MATS) Rule will also be in effect.

For more:
- see this report
- see this report

 

© 2014 FierceMarkets. All rights reserved.

http://www.fierceenergy.com/story/georgia-power-rethinks-coal-biomass-conversion/2014-01-12