Industry News

PG&E Files Plan to Shut Down Nuclear Plant

A joint proposal was filed in California that lays a roadmap for increasing energy efficiency, renewables and storage while phasing out production at the Diablo Canyon power plant by 2025.

Pacific Gas & Electric, along with labor and environmental groups, filed with the California Public Utilities Commission (CPUC) a joint proposal to increase investment in energy efficiency, renewables and energy storage beyond current state mandates. The plan also includes steps to phase out PG&E’s production at Diablo Canyon, which would be shut down when the operating licenses expires on Nov. 2, 2024 for Unit 1, and Aug. 26, 2025 for Unit 2. PG&E ended any efforts to renew the operating licenses, and asked the NRC to suspend consideration of the pending renewal application. PG&E will withdraw the application upon CPUC approval of the joint proposal.

Natural Gas Generation Rises to New High in July

Power produced with natural gas reached an all-time high in July, the U.S. Energy Information Administration said last month.

In its short-term energy outlook, the agency found that gas-fired power plants generated 4,950 gigawatt-hours of power each day in July, up 9 percent from the previous record high set in July 2015. The increase was driven by warmer weather, which boosted the use electricity for cooling, and low gas prices.

Natural gas will overtake coal as the leading source of power generation this year, accounting for 34.3 percent of all generation, according to EIA’s report. Coal’s share of the generation pie will be 30.3 percent in 2016. Nuclear and renewable resources will account for 19.4 percent and 14.8 percent of generation, respectively, this year.

First Offshore Wind Farm a Sign of Things to Come

The nation’s first offshore wind farm is set to open off the coast of Rhode Island this fall, ushering in a new era in the U.S. for the industry.

Developers, federal regulators and industry experts say the opening will move the U.S. industry from a theory to reality, paving the way for the construction of many more wind farms that will eventually provide power for many Americans.

Deepwater Wind is building a five-turbine wind farm off Block Island, Rhode Island to power about 17,000 homes. The project costs about $300 million, according to the company.

CEO Jeffrey Grybowski said the Block Island wind farm enables larger projects because it proves that wind farms can be built along the nation’s coast.

“I look at Block Island as sort of the key to unlocking the code of how to do offshore wind in the U.S.,” he said.

This comes as other states have “suddenly woken up” to offshore wind’s potential, Grybowski added.

EDF Orders 80 Vestas Wind Turbines

Vestas Wind Systems A/S Vestas Wind Systems A/S will supply 160-MW of wind turbines for future U.S. projects built by EDF Renewable Energy.

The master supply agreement includes supply and commissioning of the 80, 2.0-MW wind turbines as well as an Active Output Management 5000 service agreement and a full-scope service package. Nacelles, blades and towers will be produced at Vestas’ Colorado facilities. The contract covers deliveries in 2016 to 2019.

Exelon to Buy FitzPatrick Nuclear Plant

The FitzPatrick nuclear power plant in upstate New York will avoid closure as Exelon Generation said it will assume ownership of the plant from Entergy.

As part of the $110 million agreement, Entergy will transfer FitzPatrick’s operating license to Exelon.

The New York Power Authority agreed to transfer the decommissioning trust fund and liability for the plant to Entergy. Once regulatory approvals are obtained and the deal is finalized, Entergy will then transfer the fund and associated liability to Exelon.

The transaction is expected to close in the second quarter of 2017 pending approvals from state and federal agencies, including the U.S. Department of Justice, the Nuclear Regulatory Commission, the Federal Energy Regulatory Commission and the New York State Public Service Commission.

The deal was announced after New York regulators approved the Clean Energy Standard, which provides several incentives for the state’s nuclear power plants.

LG&E, KU to Cap Remaining Coal Ash Ponds

Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU) received approval from the Kentucky Public Service Commission to cap and close the remaining coal ash ponds at the utility’s active and retired power plants.

The plan is part of an effort to meet federal environmental regulations.

While the commission did not approve the entire unanimous settlement agreement reached in June between all parties, the ruling does allow the utilities to invest nearly $1 billion to meet environmental regulations, including the EPA’s Coal Combustion Residuals rule that became effective late last year.

KU and LG&E filed projects, with an estimated cost of $678 million and $316 million respectively, mainly for the capping and closure of the utilities’ surface impoundments.

Amazon Data Centers Powered by New Wind Farm

Pattern Energy Group dedicated a 150-MW wind power project in Indiana that would help supply power to data centers run by Amazon Web Services.

The Amazon Wind Farm Fowler Ridge consists of 65 Siemens 2.3 MW wind turbines. The turbine blades, nacelles, towers, and transformers were manufactured in the U.S.

Mortenson Construction managed construction of the site. About 175 workers, on average, were on site during construction, and there are ten full-time permanent workers to operate and maintain the facility.

The wind farm is expected to add an estimated $45 million over 25 years to the regional economy through property taxes, landowner royalties, and support for local causes.

Kemper Power Plant to Cost $43 Million More

Mississippi Power said it will take at least another month to put into operation the coal gasification power plant it is building in Kemper County.

Atlanta-based Southern Company, the utility’s parent, said it is pushing back the completion date from Sept. 30 to Oct. 31.

Mississippi Power spokesman Jeff Shepard said the extension will increase the cost of the plant by $43 million. However, the company will absorb those costs, he said. Southern says it needs time to modify equipment and reach sustained operations. The increase pushes the total cost of the plant above $6.8 billion. The cost of the plant and associated coal mine were originally estimated at $2.9 billion.

Holt Named CEO of Siemens’ Power Generation Services

Siemens appointed Tim Oliver Holt as the new CEO of its Power Generation Services Division (PGSD).

Holt is currently the CEO of the Power Business Unit within the PGSD. He will replace outgoing CEO Randy Zwirn, who is retiring.

“With Randy’s retirement, we’re losing a highly experienced leader who has played a major role in shaping our Siemens service business and the digital trends of the future. He’s had a strong influence on the development of the power generation business at Siemens for nearly twenty years,” said Lisa Davis, member of the Managing Board of Siemens AG. “Tim Holt’s many years of experience make him the perfect successor.”

Duke Energy Completes Los Vientos Wind Power Projects

After more than four years, the last of the Los Vientos wind power projects in Texas has been completed by Duke Energy Renewables. Altogether, 426 wind turbines were installed over more than four years.

The final project, Los Vientos IV with a capacity of 200 MW, recently began commercial operation near the Rio Grande in Starr County, Texas. Los Vientos I was commissioned in 2012. The five projects have a total capacity of 900 MW.

The power and associated tax credits from Los Vientos IV are being sold to Austin Energy under a 25-year power purchase a greement.

NextEra to Buy Oncor for $18.4 Billion

NextEra Energy announced plans to buy an 80 percent stake in Texas transmission company Oncor Electric Delivery for $18.4 billion.

The deal is part of the restructuring of Energy Future Holdings, which declared Chapter 11 bankruptcy two years ago. If the deal is approved, NextEra would gain 200,000 miles of power lines and 8.6 million customer accounts. NextEra said it would maintain Oncor’s Dallas headquarters and would not lay off any employees or cut salaries for at least two years.

A federal bankruptcy judge must still approve the deal. The transaction is expected to close in the first quarter of 2017. The deal comes a month after NextEra terminated its $2.6 billion acquisition of Hawaiian Electric Company.

Renewable, Nuclear Power to Rise in North America

If the U.S. Clean Power Plan (CPP) survives in court, power produced with renewable and nuclear resources in North America will grow from 38 percent in 2015 to 45 percent in 2025, according to the Energy Information Administration.

The agency pointed to the recent agreement between Canada, Mexico and the U.S. to produce half of their power supplies from low-carbon resources by 2025.

The projection assumes implementation of the CPP, which was placed on hold by the U.S. Supreme Court, will begin in 2022.

“The extension of certain tax credits, significant cost reductions, and recognition of future CPP requirements result in a large increase in renewable generation between 2015 and 2025,” EIA said Tuesday.

During the same period, coal-fired generation will drop 13 percent while the share of power produced with natural gas rises 4 percent, EIA said.