AMP to Retire Ohio Coal Plant for New Source Review Settlement
Nonprofit Ohio utility American Municipal Power (AMP) last week said it would begin shutting down the 213-MW Richard H. Gorsuch Generating Station (RHGS), a 1950’s vintage coal-fired power plant located near Marietta, Ohio, as part of a New Source Review (NSR) settlement with the Environmental Protection Agency (EPA) and the Department of Justice (DOJ).
AMP, a wholesale power supplier for 128 municipalities across Ohio, Pennsylvania, Michigan, Virginia, Kentucky, and West Virginia, said it was in the “best interest” of its member communities to cease operations at the facility by Dec. 15, 2010. It plans to operate all four boilers during summer peak demand period and then reduce to two boilers through mid-December.
The decision stems from a consent decree reached following nine months of negotiations between the EPA and AMP. The decree resolves all issues related to a Notice of Violation (NOV that alleged that certain work performed at RHGS between 1981 and 1986 (before AMP had an interest in RHGS), and in 1988-1991 (after AMP had an interest in the plant) should have triggered a New Source Review. Among other provisions contained in the consent decree is the binding obligation that AMP will cease coal-fired electric generation operations at RHGS no later than Dec. 31, 2012.
“Given the provisions in the consent decree, age of the plant, economics of operating the plant and the current attractive power market conditions, AMP determined it to be in the economic interest of the participating member communities to cease operations at the facility by Dec. 15, 2010,” the utility said, as it pointed out that “Harry Truman was president” when the plant first began generating power. “This will avoid the need for additional investments in a plant that, given RHGS’ expected life, would not be economic.”
Another factor when making this determination was safety with regard to plant operations, AMP said. “Continuing to invest money to ensure safe plant operations does not make sense given the fact that the consent decree will mandate shutdown in 2012.”
AMP will meet and bargain with the employees union, who has been notified, over the effects of the decision, and plant staff will be reduced after summer peak. AMP has a fully funded pension fund for plant retirees, and the organization will work with existing employees to ensure awareness of available job training and other resources.
AMP said it would continue to work with existing steam and water customers on the cessation of current operations. Those customers had been notified in 2006 that AMP was unable to renew existing contracts and that cessation of operations at the plant was likely. At the same time, it said, it was exploring the possibility of a gas peaking project at the site. “Such a new project would require a substantially smaller workforce, and would be re-subscribed to AMP members,” the utility said.
A decision about moving forward with such a project will be made later this year.
Source: AMP