Business

Risk is inherent in all businesses, but power plants face unique perils that require the right protection. Property and casualty insurance may not be enough; equipment breakdown, business interruption, weather risk transfer, and cyber coverage are just a few examples of insurance that may also be worth considering. The right coverage could mean the difference […]

Southern Co.’s Kemper County integrated gasification combined cycle (IGCC) project, stricken by steep cost increases and an in-service date delayed again to mid-March, isn’t economically viable in the face of projected long-term natural gas prices, the company said. Southern Co. subsidiary Mississippi Power reported that integrated operation of the facility’s two gasifiers and combustion turbines […]

Financially hemorrhaging in 2016 due to uneconomic power plants in its fleet, FirstEnergy Corp. said it may exit the competitive generation business by mid-2018, and shutter its nuclear plants in Ohio, even though it will back legislation to subsidize nuclear power. In a fourth quarter earnings call on February 22, officials from the Akron, Ohio–based […]

The utility owners of the Navajo Generating Station (NGS) in Arizona have voted to shut down the 2,250-MW coal-fired power plant in December 2019. The decision to close the plant on tribal land near Page along the border with Utah was based on the “rapidly changing economics of the energy industry,” which has seen natural […]

Remote and online monitoring of plant performance parameters is an important step toward a fully connected plant, but alone it’s not enough to exploit the real value in the Industrial Internet of Things, speakers at POWER’s inaugural Connected Plant Conference on February 15 in Dallas said. Randy Bickford, president and CTO of software firm Expert […]

Denmark’s DONG Energy is the latest in a string of power companies that are shunning the use of coal in future generation fleets. The company said on February 8 it will stop burning coal completely by 2023 in its power stations, replacing it with sustainable biomass. The measure is part of a company-wide transformation towards […]

A variety of approaches have been used to capture new benefits from combined heat and power (CHP) facilities. Some owners have transitioned to new fuels or added renewables to the mix, while others have implemented unique business models to spur development. As district heating systems are brought into the 21st century, the CHP sector seems […]

Canada Inches Closer to Nationwide Carbon Price. Canada’s government in early December struck a deal with eight of the country’s 10 provinces to introduce its first national carbon price. The government has proposed that carbon would cost C$10 per metric ton in 2018, rising by C$10 a year until it reaches C$50 in 2022. Only […]

When it comes to running a power plant, it’s easy to take the little things for granted. Yet it’s the little things that often have the greatest impact on plant managers’ ability to deliver reliable service for their customers. Take power, for instance. Plant managers are focused on bringing power to their customers. But are […]

Combined heat and power (CHP) has long been a popular option for industrial self-generation, but new technologies and business partnerships are taking the sector well beyond the traditional boilers and diesel gensets. The Erving Paper Mill in the western Massachusetts town of the same name has operated for more than 100 years. Once part of […]

In recent years, coal power generators have faced increasing difficulty predicting annual fuel requirements due to more cycling and low-load operation. That presents problems for the people negotiating fuel contracts. Not all mining companies are amenable to contract changes, but some unique solutions have been developed. Remember when coal-fired power plants supplied baseload power 24/7/365 […]

Uranium oxide, the basic fuel for nuclear power plants, has recently sold at prices not seen in the past 13 years. In fact, the price is less than the cost of production in many cases. That could be a problem, because little is being done to increase the fuel supply, even though the world is […]

Homer City Generation, operator of a three-unit, 1,884-MW coal-fired generating station about 45 miles northeast of Pittsburgh, Pa., has initiated a voluntary, pre-packaged Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware. The financial restructuring process is expected to eliminate more than $600 million in existing secured debt from Homer City’s […]

Non-utility generators urge FERC to overturn state actions in New York and Illinois that the generators claim distort FERC’s wholesale electricity markets.

Entergy Corp. and the state of New York have reached an agreement that will see the Indian Point nuclear power plant retired by 2021. “Key considerations in our decision to shut down Indian Point ahead of schedule include sustained low current and projected wholesale energy prices that have reduced revenues, as well as increased operating […]

The U.S. took a big step toward becoming a major exporter of liquefied natural gas (LNG) in 2016 as Cheniere Energy’s Sabine Pass export terminal in Louisiana came online early last year and upgrades to the Panama Canal that opened in June made shipments to the Pacific region considerably easier. Data from the Department of […]

Just as the election of Donald J. Trump could result in redirected energy policy in the U.S., 2017 elections in France and Germany could reshape plans for electricity infrastructure on the European continent. Also on both continents, some factors and trends will be out of elected officials’ control. “Difficult to see. Always in motion is […]

A digital roundtable with four senior members of diverse generating companies reveals that regulations aren’t the top concern at the moment. Instead, decisions are being driven both by customer desires and

A series of acquisitions among major suppliers in the gas turbine market over the past couple of years has changed much of the global landscape for gas-fired power. Several long-standing firms have been swallowed up, while others have gained new prominence thanks to conditions laid on the big deals by regulators. What this means for […]

The past year saw an astonishing number of mergers, acquisitions, and business reconfigurations of electricity and energy companies, without any obvious organizing theory. Is it possible to make sense of the activity, or is it just business Brownian motion—aka, random behavior?  Gas companies spun off power generating assets. Power companies sold offshore businesses. Independent generators […]

How do you get generating company executives and those who interact with the power industry to think outside the box when planning for the future? The answer may involve a board game. Humans are pre-programmed to prefer routine, tradition, and regularity, without questioning whether longevity equals good. Fear of the unknown, and the power of […]

If broad policy commitments announced by various countries are implemented, coal will not only lose its rank as the dominant fuel for power generation to renewables by 2040, but the world’s coal fleet will be significantly transformed by technology advances, the International Energy Agency’s (IEA’s) newly released World Energy Outlook (WEO-2016) forecasts. Under a baseline […]

Japanese Firms Poised to Build Two 540-MW IGCC Plants Based on Nakoso Technology. A consortium of Japanese firms on December 1 said they had received full-turnkey orders for two integrated gasification

As our January 2017 cover image of a dynamic Rubik’s Cube suggests, the power industry, especially in the U.S., is dealing with something akin to solving a 3-D puzzle whose pieces are being added and subtracted as the game is being played. Although shares of traditional, regulated electric utilities remain some of the most predictable […]

The U.S. market for electricity is trifurcated. More than half the country is served by competitive generators bidding against each other in wholesale markets. Almost half is served by conventional state-regulated, vertically integrated utilities controlling generation and transmission. The rest, a much smaller portion, consists of government-owned and customer-owned utilities, some of which are generators […]

A tumultuous election year that was marked by market turmoil, the events of 2016 clearly showed that big change is afoot for the power sector. Many of POWER‘s bold predictions for 2016, such as that the near-simultaneous surge in U.S. natural gas production and recent enactment of environmental rules would reshape the U.S. power sector, […]

Some of the U.S. coal market’s own product wound up in its stocking this Christmas season. Despite hope from the election of Donald Trump and a potential shift toward more coal-friendly energy policies, coal plant owners across the country continued the trend toward shutdowns and reduced operations that have marked the past few years. Coal […]

Toshiba Corp.—the parent of Westinghouse Electric Co.—said it might book huge losses as a result of Westinghouse’s acquisition of the nuclear construction and integrated services business CB&I Stone & Webster Inc. (S&W). Westinghouse closed on its agreement with CB&I in December 2015. When the deal was made, Toshiba estimated that the amount of “goodwill” resulting […]

Although optimistic about the future of the coal industry under the Trump administration, Robert Murray, CEO of Murray Energy Corp., the largest underground coal mining company in the U.S., does not expect the president-elect to bring back coal mining jobs or spur new coal-fired power plant construction. “I’ve asked President-elect Trump to temper his comments […]