POWERnews

American Electric Power (AEP) may continue operating Big Sandy Unit 2, an 800-MW coal-fired power plant in Kentucky, if state regulators approve a 31% rate increase to help pay for pollution controls. The measure would trim the company’s planned coal retirements to 5,138 MW, not 5,909 MW, as the company had announced last June.

About 93% of total coal consumed in the U.S. in 2011 was used in the electric power sector, but electric sector coal consumption dropped by an estimated 40 million short tons—or 4% compared to 2010—as generators turned to cheaper natural gas instead, the Energy Information Agency (EIA) says.

A White House–commissioned independent review of the Department of Energy’s (DOE’s) loan portfolio concludes that the DOE could better manage its loan program and ongoing monitoring of its loan portfolio, but that the loan portfolio as a whole is expected to perform well and holds less risk than envisioned by Congress when it created and funded that program.

Eleven states filed a lawsuit in federal court on Friday to induce the Environmental Protection Agency (EPA) to promptly revise national air quality standards for fine particulate matter (PM 2.5, also known as soot) and adopt them by a certain date.

New Mexico’s Environmental Improvement Board (EIB) last week unanimously repealed a statewide cap-and-trade program adopted in 2010, when Democratic Governor Bill Richardson was in office. Current Republican Gov. Susana Martinez has been fiercely opposed to the measure.

As the U.S. Nuclear Regulatory Commission (NRC) prepares to vote on Thursday on whether to approve a combined construction and operating license (COL) for Southern Co.’s proposed 2,234-MW expansion of its Vogtle nuclear plant, anti-nuclear activists are gearing up to oppose the decision. Meanwhile, Progress Energy is reportedly considering shelving its proposed Levy County, Fla., reactor.

A settlement reached between Dominion and conservation groups that was last week approved by a federal court makes the utility’s plans to shutter all four units at its 60-year-old Salem Harbor Station in Salem, Mass., by 2014 legally enforceable.

Renewable power prices in California surged from 5.4 cents/kWh in 2003 to 13.3 cents/kWh in 2011. However, they are slated to fall as new contract bids submitted to utilities last year were estimated at about 30% lower than in 2009, a new report from the California Public Utilities Commission (CPUC) suggests.

More renewable power capacity was installed than ever before in the European Union (EU) during 2011, the European Wind Energy Association (EWEA) says in a new report published on Monday. The EU saw a 3.9% increase in power capacity compared with 2010, much of which was driven by renewable power capacity increases. In 2011, the EU added 37.7% more renewable power capacity than in 2010.

Just two weeks after FirstEnergy Corp. said it would close more than 2 GW of six older coal-fired power plants Ohio, Pennsylvania, and Maryland by September, the Akron, Ohio–based company today said it would retire three more plants in West Virginia. The company cited “high costs” to implement the Environmental Protection Agency’s (EPA’s) recently finalized Mercury and Air Toxics Standards (MATS).

The two-unit San Onofre nuclear power plant in the northwest corner of San Diego County, Calif., remained shut down today, more than a week after a leak from a tube in one unit released a small amount of radiation. On Thursday, regulatory officials found extensive wear on tubes in the second unit, which is offline for maintenance. Also this week, reports confirmed that a worker had fallen into and climbed out of a reactor pool at the facility.

New Hampshire’s Legislature is considering a bill that could require Public Service of New Hampshire (PSNH)—the state’s largest electric utility—to divest all 12 of its generation facilities by 2013 to complete restructuring of its electric sector. At a hearing on Thursday, PSNH staunchly opposed the measure, saying the bill could have “far-reaching economic risks, and reliability consequences for all New Hampshire business and residential customers.”

A new report commissioned by the Coalition for Affordable Solar Energy (CASE)—an alliance of about 70 solar companies whose rallying message declares global competition has made solar energy a reality around the world—finds that if the U.S. government imposes a 100% tariff on imported solar PV cells and modules from China, the nation could see as many as 50,000 net lost jobs over the next three years.

Citing newly finalized and proposed environmental regulations that could make costs uncertain, FirstEnergy Corp. on Thursday said it would shutter six older coal-fired power plants with capacities totaling 2,689 MW in Ohio, Pennsylvania, and Maryland by September. The same uncertainties prompted a major backer of a $2 billion coal-fired power plant planned for Washington County in Georgia to pull its funding.

The Nuclear Regulatory Commission (NRC) on Tuesday urged owners of 62 nuclear power plants in the Central and Eastern U.S.—facilities housing 96 of the nation’s 104 commercial nuclear reactors—to reevaluate seismic hazards using a new seismic model and information from a recent report.

A failed electrical insulator at a switchyard at Exelon Generation Co.’s two-unit Byron nuclear plant in Lisle, Ill., has been blamed for the loss of offsite power on Monday morning that automatically shut down Unit 2 and forced Exelon to declare an “Unusual Event.”

The 15-member Blue Ribbon Commission (BRC) appointed by Energy Secretary Steven Chu in January 2010 to provide comprehensive recommendations for a long-term solution to managing and disposing the nation’s spent nuclear fuel and high-level radioactive waste released its much-anticipated final report last week.

A federal district court judge on Tuesday ruled that the Rural Utilities Service (RUS), an arm of the U.S. Department of Agriculture (USDA), must complete an environmental impact study (EIS) before any approvals or other major federal action can be taken on the $2.8 billion expansion at Sunflower Electric Power Corp.’s coal plant in Holcombe, Kansas. The ruling may delay construction of the 875-MW plant, a politically controversial project in the Kansas Legislature.

A high-voltage electricity panel arc reportedly sparked a brief fire at the 100-MW Nacogdoches Power, LLC biomass power plant under construction in Sacul, Texas, and sent two workers to hospital in critical condition on Tuesday.

Federal Energy Regulatory Commission (FERC) on Monday released a white paper that seeks comment on its proposals to “provide a fair, timely and transparent process” for FERC to advise the Environmental Protection Agency (EPA) on requests for extension of time to comply with its Mercury and Air Toxics Standards rule.

Over the next two decades, the U.S. power profile will be markedly different as generation from coal declines, natural gas power and renewables surge, and nuclear generation decreases slightly, said the Energy Information Administration (EIA) in its early release version of the Annual Energy Outlook 2012 on Monday. The full report, scheduled to be released this spring, presents updated projections of U.S. energy markets through 2035.

President Barack Obama championed an “all-out, all-of-the-above strategy” in Tuesday’s State of the Union address to develop all U.S. energy sources, though his focus rested on renewables and natural gas—with no mention of coal or nuclear power.

The Federal Energy Regulatory Commission (FERC) on Monday issued its first pilot project license to Verdant Power’s 1,050-kW Roosevelt Island Tidal Energy (RITE) project.

The Department of Energy’s (DOE’s) Advanced Research Projects Agency-Energy (ARPA-E) funding selection criteria to private companies could be improved by requiring applicants to provide guided explanations of why private investors were unwilling to fund projects, the Government Accountability Office (GAO) finds in a new report.

The Department of Energy (DOE) on Friday announced a draft funding opportunity to establish cost-shared agreements with private industry for the design and licensing of small modular reactors (SMR), targeting their deployment by 2022.

A federal judge last week ruled that Entergy’s Vermont Yankee nuclear power plant—Vermont’s only reactor—can remain operating beyond a state-mandated shutdown deadline. State laws that would force the closure of the 40-year-old plant, which recently garnered a 20-year operating license extension from the Nuclear Regulatory Commission (NRC), are preempted by federal law, the judge said.

In response to a recent decision by a federal court judge that reinstates rules stayed by the Environmental Protection Agency (EPA) in early 2011 and that govern hazardous air pollutant standards for industrial boilers and commercial and industrial solid waste incinerators—so-called Boiler MACT rules—EPA Administrator Lisa Jackson said the agency was committed not to enforce those standards until April, when a new revised suite of boiler standards will be finalized.

The U.S. Environmental Protection Agency (EPA) last week released, for the first time, data collected under its Greenhouse Gas (GHG) Reporting Program. The data set shows that in 2010, power plants were the largest direct emitters of GHGs, followed by petroleum refineries. The database was released as the agency continues work on GHG standards for new and modified power plants, which may be released by the end of this month.

The U.S. power sector will see heightened electricity consumption over the next two years, a spurt in natural gas–fueled power generation that is expected to offset a slight decline in coal power, and a significant decline in hydropower generation that could mark a decline in overall renewable generation, the Energy Information Administration (EIA) says in its latest short-term outlook.

A settlement reached between Duke Energy and conservation groups on Tuesday legally binds the North Carolina–based utility to shutter 1,667 MW of coal-fired capacity from aging plants and tighten pollution controls at the new 825-MW pulverized coal unit that is scheduled to come online this year at its Cliffside Steam Station on the Rutherford/Cleveland County line in North Carolina.