POWERnews

The Federal Energy Regulatory Commission (FERC) stunned officials of Duke Energy and Progress Energy on Thursday when it refused to unconditionally approve a $13.7 billion merger deal of the two companies that would have created the largest U.S. electric utility. The regulatory body cited concerns about the merger’s impact on power markets in North and South Carolina—where both companies are based—for its decision.

The Environmental Protection Agency (EPA) today issued its final Mercury and Air Toxics Standards (MATS), which will require about 40% of all coal-fired power plants in the U.S. to deploy pollution control technologies to curb emissions of mercury and other air pollutants such as arsenic and cyanide within three years. The regulation has been called the “most expensive order” aimed at companies that has been considered by the Obama administration.

The Federal Energy Regulatory Commission (FERC) last week ruled that the Bonneville Power Administration (BPA) discriminated against wind generators when it used its transmission market power to curtail wind power after high river flows and high wind last May and June caused generation on the BPA system to exceed power demand.

NRG Energy brought development of a key offshore wind project off the coast of Delaware to a screeching halt on Monday. Saying the development of a new domestic offshore industry was ridden with “monumental challenges,” the Princeton, N.J., company cited its inability to find an investment partner, a lack of federal loan guarantees, and the looming expiration of wind tax incentives as key reasons behind its decision.

A report released by the Government Accountability Office (GAO) last week finds that the Tennessee Valley Authority’s (TVA’s) financial condition could hamper its ability to fund capital improvements—including a 20-year plan to meet power demand with more natural gas generation, three new nuclear reactors, and expanding energy efficiency programs.

Vattenfall last week scrapped a much-awaited €1.5 billion ($2 billion) carbon capture and storage (CCS) demonstration project it planned to build and begin operating by 2015 in the German federal state of Brandenburg, blaming “insufficient will in German federal politics.”

The UK’s Office of Nuclear Regulation (ONR) and Environment Agency today issued separate interim design approvals for AREVA and EDF’s EPR and Westinghouse’s AP1000 nuclear reactor designs, saying they are satisfied with how the designers of both reactors plan to resolve a number of remaining issues. The decision establishes that the reactors are acceptable for use in the UK, but reactor vendors must first clear remaining issues and take on board lessons learned from the Fukushima accident before being allowed to build new plants in the UK.

A former chairman of the Indiana Utility Regulatory Commission (IURC) who was embroiled in an ethics scandal over helping a former agency counsel apply for a job at Duke Energy while participating in proceedings involving the utility’s costly Edwardsport integrated gasification combined cycle (IGCC) plant was indicted on Monday by a grand jury in Marion County.

The Midwest Independent Transmission System Operator (MISO) on Thursday approved 215 new transmission infrastructure projects as part of the grid operator’s Transmission Expansion Plan 2011 (MTEP11). The projects include 17 transmission line projects that are estimated to cost as much as $5.2 billion to manage a “severe drop in planning reserve margins” that MISO has forecast could occur in the next years if pending environmental regulations proceed as planned.

An agreement reached between LS Power and environmental groups on Monday ends a decade-long legal battle, but it will force the company to ditch plans to build the 1,200-MW coal-fired Longleaf Energy Station near Blakey, Ga.; shelve plans for at least five years to build the 665-MW Plum Point II coal-fired plant near Osceola, Ark.; and limit pollution from the 900-MW pulverized Sandy Creek plant in Riesel, Texas.