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Released May 27, 2015 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Kansas City Power
& Light Company (KCP&L) (Kansas City, Missouri), a utility subsidiary of Great Plains Energy Incorporated (NYSE:GXP) (Kansas City, Missouri), will cease coal-burning at six generating units, totaling 708 megawatts (MW), between 2016 and 2021 in order to meet tougher environmental regulations, the utility said.
By the end of 2016, KCP&L said it would no longer burn coal at the 96-MW Unit 6 at its Lake Road Station. That unit, built in 1967, already has the capability to burn gas, and it will use that fuel after dropping coal. The utility's Montrose Unit 1, a 170-MW unit built in 1958, also will stop coal-burning by yearend 2016. The utility has not yet decided it if will close Montrose Unit 1 or retrofit it to burn gas.
By yearend 2019, coal use will cease at KCP&L's Sibley units 1 and 2. Those units, with generating capacity of 48 MW and 51 MW, respectively, began generating electricity in the early years of John F. Kennedy's presidency. As with Montrose 1, KCP&L has yet to decide whether to close or convert Sibley units 1 and 2.
Two larger units, Montrose 2 and Montrose 3, will stop coal-burning by yearend 2021, the utility said, adding that a closure vs. fuel switching decision has not been made. Montrose Unit 2, with 164 MW of capacity, was brought online in 1960. Four years later, Montrose Unit 3 began operating. That unit has 176 MW of generating capacity.
"After evaluating options for future environmental regulation compliance, ending coal use at these plants is the most cost-effective and cleanest option for our customers," said Terry Bassham, president and chief executive of Great Plains Energy and KCP&L, in a statement earlier this year. "By retiring or converting more than 700 megawatts of coal-fired generation, we'll take an even bigger step toward reducing emissions and improving the air quality in our region."
The decision to end coal-burning at these six stations will impact employees who work there, but KCP&L does not anticipate that any employees will lose their jobs as a result. The utility said it would find job opportunities within the company for employees displaced at Lake Road, Montrose and Sibley.
"For decades, coal has been a reliable, very low-cost way to provide power to our customers, and is one reason why our rates are lower than the national average," Bassham said. "However, as our nation moves to a cleaner, more sustainable energy future, our industry is facing increasing environmental scrutiny and regulations, many of which are focused on coal-fired generation. Our commitment and focus is to move to a cleaner energy future for our region, while balancing the cost impact to our customers."
KCP&L, which provides electricity to more than 800,000 customers in northwestern Missouri and eastern Kansas, has been increasing its investments in renewable energy and energy efficiency programs in recent years. By the end of 2016, two windfarms totaling 400 MW are scheduled to begin generating electricity for the utility's customers. KCP&L also is expanding its portfolio if customer energy efficiency programs by about $29 million, a move the utility estimated will generate about $400 million in benefits--mainly lower electric rates--over the next 20 years. For more on these actions, see March 19, 2014, article - KCP&L Moves Toward Cleaner, Greener Resource Portfolio.
KCP&L also is just putting the finishing touches on a large environmental upgrade project at the two-unit, coal-fired, 1,578-MW La Cygne Power Station in Kansas. KCP&L shares ownership of La Cygne with Westar Energy Incorporated (NYSE:WR) (Topeka, Kansas). That project involved installation of wet scrubbers, low-NOx burners, baghouses and selective catalytic reduction (SCR) equipment. KCP&L's share of the costs was about $615 million, a spokesman told Industrial Info.
Earlier this year, KCP&L filed for a rate increase to recover the costs of the environmental upgrades at La Cygne, which is one of its largest and lowest-cost coal-fired generators.
"KCP&L's decision to stop burning coal at these six relatively small generating units makes sense, given tougher environmental regulations," said Brock Ramey, Industrial Info's North American Power specialist. "Tougher environmental regulations like the Cross-State Air Pollution Rule (CSAPR) and the Mercury and Air Toxics Standards (MATS) make it uneconomic to install pollution-control equipment on smaller, older and less-efficient coal-fired generators. Like many other utilities, KCP&L is opting to reduce emissions at its larger, newer coal-fired generation, increase its purchase of renewable energy and fuel-switch at mid-sized generators, where the economics pencil out. A lot of those decisions will be driven by electric load growth and the price of natural gas."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
By the end of 2016, KCP&L said it would no longer burn coal at the 96-MW Unit 6 at its Lake Road Station. That unit, built in 1967, already has the capability to burn gas, and it will use that fuel after dropping coal. The utility's Montrose Unit 1, a 170-MW unit built in 1958, also will stop coal-burning by yearend 2016. The utility has not yet decided it if will close Montrose Unit 1 or retrofit it to burn gas.
By yearend 2019, coal use will cease at KCP&L's Sibley units 1 and 2. Those units, with generating capacity of 48 MW and 51 MW, respectively, began generating electricity in the early years of John F. Kennedy's presidency. As with Montrose 1, KCP&L has yet to decide whether to close or convert Sibley units 1 and 2.
Two larger units, Montrose 2 and Montrose 3, will stop coal-burning by yearend 2021, the utility said, adding that a closure vs. fuel switching decision has not been made. Montrose Unit 2, with 164 MW of capacity, was brought online in 1960. Four years later, Montrose Unit 3 began operating. That unit has 176 MW of generating capacity.
"After evaluating options for future environmental regulation compliance, ending coal use at these plants is the most cost-effective and cleanest option for our customers," said Terry Bassham, president and chief executive of Great Plains Energy and KCP&L, in a statement earlier this year. "By retiring or converting more than 700 megawatts of coal-fired generation, we'll take an even bigger step toward reducing emissions and improving the air quality in our region."
The decision to end coal-burning at these six stations will impact employees who work there, but KCP&L does not anticipate that any employees will lose their jobs as a result. The utility said it would find job opportunities within the company for employees displaced at Lake Road, Montrose and Sibley.
"For decades, coal has been a reliable, very low-cost way to provide power to our customers, and is one reason why our rates are lower than the national average," Bassham said. "However, as our nation moves to a cleaner, more sustainable energy future, our industry is facing increasing environmental scrutiny and regulations, many of which are focused on coal-fired generation. Our commitment and focus is to move to a cleaner energy future for our region, while balancing the cost impact to our customers."
KCP&L, which provides electricity to more than 800,000 customers in northwestern Missouri and eastern Kansas, has been increasing its investments in renewable energy and energy efficiency programs in recent years. By the end of 2016, two windfarms totaling 400 MW are scheduled to begin generating electricity for the utility's customers. KCP&L also is expanding its portfolio if customer energy efficiency programs by about $29 million, a move the utility estimated will generate about $400 million in benefits--mainly lower electric rates--over the next 20 years. For more on these actions, see March 19, 2014, article - KCP&L Moves Toward Cleaner, Greener Resource Portfolio.
KCP&L also is just putting the finishing touches on a large environmental upgrade project at the two-unit, coal-fired, 1,578-MW La Cygne Power Station in Kansas. KCP&L shares ownership of La Cygne with Westar Energy Incorporated (NYSE:WR) (Topeka, Kansas). That project involved installation of wet scrubbers, low-NOx burners, baghouses and selective catalytic reduction (SCR) equipment. KCP&L's share of the costs was about $615 million, a spokesman told Industrial Info.
Earlier this year, KCP&L filed for a rate increase to recover the costs of the environmental upgrades at La Cygne, which is one of its largest and lowest-cost coal-fired generators.
"KCP&L's decision to stop burning coal at these six relatively small generating units makes sense, given tougher environmental regulations," said Brock Ramey, Industrial Info's North American Power specialist. "Tougher environmental regulations like the Cross-State Air Pollution Rule (CSAPR) and the Mercury and Air Toxics Standards (MATS) make it uneconomic to install pollution-control equipment on smaller, older and less-efficient coal-fired generators. Like many other utilities, KCP&L is opting to reduce emissions at its larger, newer coal-fired generation, increase its purchase of renewable energy and fuel-switch at mid-sized generators, where the economics pencil out. A lot of those decisions will be driven by electric load growth and the price of natural gas."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
