Skip to main content

The Future in Miniature with Georgia Power

Georgia-Power-logoMiniature not because Georgia Power is a small provider of electricity, but because the company’s view of its own future may provide some insight into larger energy trends. We should not assume this to be true, an easy trap to fall into; instead, let’s look at it as one data point in a thesis that could be proven or disproven by more data points.

The reason we can glimpse into the future is because the Georgia Public Service Commission requires Georgia Power to submit what it calls an integrated resource plan. This IRP provides a look at the electricity landscape over the next 20 years. Georgia Power prepares a new IRP every three years, so its outlook can change based on changes in the marketplace.

Although we often refer to the two new reactors at Georgia’s Plant Vogtle as a Southern Co. project, the facility is jointly owned by Georgia Power (45.7%), Oglethorpe Power Corporation (30%), Municipal Electric Authority of Georgia (22.7%) and Dalton Utilities (1.6%). Georgia Power is a subsidiary of Southern Co. and, as you can see, owns the largest share of Plant Vogtle.

But nuclear later. First, coal (and oil): 

As part of today's filing, Georgia Power is requesting to decertify and retire 15 coal- and oil-fired generating units totaling 2,061 megawatts (MW): Units 3 and 4 at Plant Branch in Putnam County; units 1-5 at Plant Yates in Coweta County; units 1 and 2 at Plant McManus in Glynn County; and units 1-4 at Plant Kraft in Chatham County; and Boulevard units 2 and 3, also in Chatham County. In addition, the company is requesting to decertify and sell Plant Bowen Unit 6, which has a rating of 32 MW, bringing the total of retired capacity to 2,093 MW.

I don’t think the company links these closures explicitly to the two new reactors at Vogtle, but consider:

As recently as a year ago, Georgia Power and its parent, Atlanta-based Southern Co., complained about new environmental regulations to reduce toxic emissions from power plants, saying those rules could force the utility to close several coal plants and threaten peak capacity. Company officials said that is no longer a concern because long-term demand is not as high as they once predicted.

And:

Once a dominant fuel for electricity generation, coal’s use will continue to diminish as Georgia Power closes more than a dozen coal and oil-fired units.

And that’s because they do not expect to open any new coal-fired units to replace the closed units.

How about natural gas?

Also, Georgia Power will request converting units 6 and 7 at Plant Yates from coal to natural gas, and will switch from burning Central Appalachian coal to burning Powder River Basin coal at Plant McIntosh Unit 1, pending a successful test burn and further study.

So two more units will halve their carbon emissions. I have no idea of the implications of changing coal type at McIntosh – I’ll leave that to black rock mavens to explain – though I reckon it is meant to improve the facility’s emissions profile.

So no new coal units, a switch of two units to natural gas – and nuclear energy? Well, the story about the filing mentions it only in passing, so let’s tell that part of the story ourselves: the two new reactors will pack about 2234 megawatts capacity. Hmm – coal out, about 2061 megawatts, nuclear in, about 2234. Seems pretty quid pro quo to me, at least as a correlation.

The switchover to natural gas, the build out of nuclear energy, the development of renewable energy sources – Georgia Power expects to field 1500 megawatts of capacity by 2016 – suggests a rapidly changing, environmentally aware and nuclear-friendly energy portfolio. Just to put a cherry on it, let’s add this to our data points:

The continuing expansion of renewable energy technologies, advances in energy efficiency, and the rapid shift from coal to natural gas for generating electricity combined to bring down U.S. carbon dioxide emissions last year to their lowest levels since 1994, according to a report by Bloomberg New Energy Finance. 

And it’s only going to get better when the new reactors in Georgia (and South Carolina) go online later this decade. Still, it’s all good – in miniature or life size.

Comments

jimwg said…
Re:
"Company officials said that is no longer a concern because long-term demand is not as high as they once predicted."

Sometimes these kinds of statements puzzle me, in light that there's supposed to be a big push and future for electric vehicles. Aren't you supposed to building up your electric infrastructure to accommodate this -- or ironically, can the resultant lack of affordable power nip the widespread applications of electric vehicles in the bud?

James Greenidge
Queens NY
SteveK9 said…
EV's are indeed the technology that could really impact electricity demand. I'm optimistic, not everyone is. I think it will happen slowly enough that generating capacity can be increased in time.
Anonymous said…
The switch in coal from Appalachian to Powder River Basin is because PRB coal is low sulfur and therefore can be used in coal fired plants without scrubbers. It's actually somewhat ironic, but plants with scrubbers tend to burn dirtier coal since it is cheaper and the scrubbers still allow them to stay below the legal limits for emissions.

Popular posts from this blog

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap

An Ohio School Board Is Working to Save Nuclear Plants

Ohio faces a decision soon about its two nuclear reactors, Davis-Besse and Perry, and on Wednesday, neighbors of one of those plants issued a cry for help. The reactors’ problem is that the price of electricity they sell on the high-voltage grid is depressed, mostly because of a surplus of natural gas. And the reactors do not get any revenue for the other benefits they provide. Some of those benefits are regional – emissions-free electricity, reliability with months of fuel on-site, and diversity in case of problems or price spikes with gas or coal, state and federal payroll taxes, and national economic stimulus as the plants buy fuel, supplies and services. Some of the benefits are highly localized, including employment and property taxes. One locality is already feeling the pinch: Oak Harbor on Lake Erie, home to Davis-Besse. The town has a middle school in a building that is 106 years old, and an elementary school from the 1950s, and on May 2 was scheduled to have a referendu

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin