19 December 2011
By BRENDAN CASE – Staff Writer
bcase(at)dallasnews.com
Dallas Morning News
Texas’ largest power generator can shut down two coal-fired units without jeopardizing the state electrical grid?s transmission stability, the grid’s operator said Monday.
The Electric Reliability Council of Texas said it could keep the lights on without two generation units in Titus County that belong to Luminant, a unit of Dallas-based Energy Future Holdings.
ERCOT has completed its analysis and determined that Monticello Units 1 and 2 are not needed to support ERCOT transmission system reliability, the council said Monday.
Luminant has said it needs to close the two units to comply with new federal pollution rules. The move would cut its generating capacity about 8 percent.
The Environmental Protection Agency?s Cross-State Air Pollution Rule goes into effect Jan. 1 and requires coal plant operators to significantly cut sulfur dioxide and nitrogen oxide emissions. The rule is designed to reduce premature deaths from asthma and other health problems related to air pollution.
A group of utilities and states have asked the U.S. Court of Appeals to delay the rule’s implementation. If the court does not grant a stay, Luminant will close the two Monticello units, said Allan Koenig, a spokesman for the company.
Luminant said in September that in addition to idling the two units, it would close three mines and cut 500 jobs to comply with the rule.
The company is also awaiting the finalization of proposed revisions to the air pollution rule, which are expected after Jan. 1. Luminant will not make personnel decisions until the revisions are finalized, Koenig said.
"Our compliance plan, as announced in September, is still the plan unless the rule is stayed before Jan. 1 and/or until we have some clarity on the proposed revisions," he said.
If ERCOT had found that the Monticello units were needed for grid stability, it could have struck a deal with Luminant to continue operating them in emergencies.
Under such a reliability must-run agreement, ERCOT would pay Luminant the units operating costs during periods when they were needed. Luminant would still be responsible for meeting EPA rules.
ERCOT said Monday that it would work with transmission company Oncor to ensure transmission security without the need for reliability must-run agreements with the two Monticello units.
Regulators are also focused on the need for power generation. ERCOT released estimates earlier this month indicating that power reserves the extra capacity used to avert rotating outages will likely fall below the minimum target beginning next summer.
The EPA has disputed Luminant’s position that it has no other option to comply with the new rule other than shutting down facilities.
Consumer advocacy group Public Citizen said it applauded ERCOT ?for calling Luminant?s bluff to shut down the aging Monticello coal fired plant in North Texas, and finding that we don?t need to pay a premium to run one of Texas? dirtiest coal plants to keep the air conditioners running.
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