An Ignoble Experiment

2. IPL to phase out all coal by 2016

Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) plan to withdraw their application for a second natural gas combined-cycle (NGCC) generating facility from the Kentucky Public Service Commission (KPSC).

In January 2014, LG&E and KU filed a request with the KPSC to build an approximately 700 MW NGCC generating facility in Muhlenberg County and a 10 MW solar photovoltaic facility in Mercer County. The need for the $700 NGCC, which was expected to be completed by 2018, was based, in part, on energy forecasts through 2035 that included serving municipal customers.

The decision not to pursue the Green River NGCC comes as a result of nine municipal utility customers' decisions to terminate their wholesale power contracts -- totaling approximately 320 MW of peak demand -- with Kentucky Utilities in 2019.

Following the municipal utilities' termination notices, LG&E and KU put the new generation requests on hold for 90 days to weigh the impacts on future generation plans. Ultimately, LG&E and KU decided to withdraw their application for the NGCC.

"We've analyzed the situation carefully and believe that it is in the best interest of all of our customers to withdraw our current application for the natural gas combined-cycle unit in Western Kentucky," said Paul W. Thompson, chief operating officer. "Removing more than 300 megawatts of demand changes our load forecasts and thus delays the need for new generation."

LG&E and KU will, however, continue with the $36 million solar generating facility at KU's existing Brown facility. If approved, the solar unit is expected to go online in 2016.

For more:
- see these KPSC documents

Read more about: natural gas
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By Barbara Vergetis Lundin

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3. DOE fuels next-gen vehicle technologies with $55M

Indianapolis Power & Light (IPL) is the most recent in a growing list of utilities announcing plans to shutter their coal-fired power plants. IPL plans to cease burning coal at its Harding Street Generation Station (HSS) power plant by 2016.

Credit: IPL

IPL will soon file plans with the Indiana Utility Regulatory Commission (IURC) to get approval to repower Unit 7 from coal to natural gas as part of its overall wastewater compliance plan. In May, IPL received approval from the IURC to convert Harding Street Units 5 and 6 from coal to natural gas. This plan would reduce IPL's dependence on coal from 79 percent in 2007 to 44 percent in 2017, making natural gas IPL's largest fuel generation source.

"IPL has a commitment to provide affordable electricity, and converting Harding Street Unit 7 to natural gas is the best plan for our customers because it is the reasonable, least cost option," said Kelly Huntington, IPL president and CEO. "Compliance with current and future EPA standards will continue to increase the cost of electricity for our customers."

Community and environmental groups have been pushing the utility for quite some time, lodging a campaign against the utility to "protect clean air and public health." Part of the campaign included petitions and post cards from thousands, with those same groups and individuals launching protests across Indiana.

Just a month ago, in July, City-County Councilors Zach Adamson (D-At Large) and William "Duke" Oliver (D-10th District) introduced a resolution urging IPL to develop a cost-effective plan to stop burning coal at HSS and increase its clean energy investments. The bipartisan measure passed the Community Affairs Committee 4-1.

In addition to phasing out coal entirely by 2016, IPL also announced plans to close its coal ash lagoons at the Harding Street plant, as part of its transition from coal to gas.

In the past few years, IPL has announced the closure or refueling of 12 of its coal-fired or oil-fired power generating units. IPL's latest announcement brings the number of coal plants across the country that have been slated for retirement to 177. The retirement of IPL's last remaining coal-fired boiler marks the 500th unit to be retired since 2010.

For more:
- read this article

Read more about: coal power
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By Barbara Vergetis Lundin

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4. BOEM realizing the realities of offshore oil and gas developments

As part of the Obama Administration's EV Everywhere Grand Challenge -- which aims, in part, to reduce dependence on foreign oil and transition to a clean energy economy -- the U.S. Department of Energy (DOE) has announced more than $55 million in funding for 31 new projects to accelerate research and development of critical vehicle technologies that will improve fuel efficiency and reduce costs.

Credit: Argonne National Laboratory

Launched in 2012, the EV Everywhere Grand Challenge seeks to make the U.S. automotive industry the first to produce plug-in electric vehicles (PEV) that are as affordable and convenient as today's gasoline-powered vehicles by 2022. Significant cost reductions and improvements in vehicle performance have had a dramatic impact on the U.S. automotive market in the last several years. PEV sales continue to grow, with sales in the first six months of 2014 more than 30 percent higher than the same period in 2013. Since 2009, the cost of battery technology has come down by more than 60 percent.

Through the Advanced Vehicle Power Technology Alliance with the DOE, the Department of the Army is contributing an additional $3.7 million in co-funding to support projects to accelerate the development and deployment of cutting-edge technologies that will strengthen the military, economy, and energy security.

As part of the selections, 19 are aimed at reducing the cost and improving the performance of key PEV components -- including improving "beyond lithium ion technologies" that use higher energy storage materials -- and developing and commercializing wide bandgap semiconductors that offer significant advances in performance, while reducing the price of vehicle power electronics.

Twelve more projects are targeted at improvements -- including developing and demonstrating dual-fuel/bi-fuel technologies to reduce petroleum usage, accelerating growth in high-efficiency, cost-competitive engine and powertrain systems for light-duty vehicles, and accelerating the introduction of advanced lubricants and coatings to increase the efficiency of current and future vehicles.

Other projects focus on advancing lightweight materials research to help electric vehicles increase their range and reduce battery needs, and developing advanced climate control technologies that reduce energy used for passenger comfort and increase the drive range of plug-in electric vehicles.

For more:
- see the list of awardees

Read more about: electric vehicles
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By Barbara Vergetis Lundin

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5. Austin Energy to lose money with its Power Supply Adjustment and Regulatory Charge

The Bureau of Ocean Energy Management (BOEM) has issued an Advanced Notice of Proposed Rulemaking (ANPR) on Risk Management, Financial Assurance, and Loss Prevention as it considers modernizing its risk management program and bonding regulations for offshore oil and gas operations on the Outer Continental Shelf.

With this ANPR, BOEM is attempting to begin a conversation about its current 20-year-old regulations, which have not kept up with offshore infrastructure developments -- including deepwater operations, current industry practices, and the growing costs of decommissioning.

"We would like to work with industry and others to determine how to improve our regulatory regime to better align with the realities of aging offshore infrastructure, hazard risks, and increasing costs of decommissioning," said BOEM acting director Walter D. Cruickshank. "[The ANPR] is an important first step in initiating a dialogue on how to best enhance our risk management program to better match current practices."

Existing regulations require lessees on the Outer Continental Shelf to provide bonds or other alternative forms of financial assurance to cover current and future operations, such as decommissioning oil and gas infrastructure. Since the current bonding requirements were set nearly a 25 years ago ago, offshore operations have changed significantly, such as increased advancements in the scale and complexity of deepwater and subsea operations. The costs of decommissioning have also dramatically increased.

In light of these infrastructure and operational changes, BOEM has recognized the need to update its requirements and develop a comprehensive program to assist in identifying, prioritizing, and managing the risks associated with industry activities on the Outer Continental Shelf.

For more:
- see this article

By Barbara Vergetis Lundin

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