POWERnews

President Barack Obama on Tuesday offered to conditionally guarantee $8.33 billion in loans for Southern Co.’s project to build two AP1000 nuclear reactors at the Alvin W. Vogtle Electric Generating Plant in Burke, Ga. The pledge marks the first federal nuclear loan guarantee, and it could boost construction of the first U.S. nuclear plant in more than 30 years. More commitments are on the way, the Energy Department said.

BP America, Caterpillar, and ConocoPhillips have pulled out of the U.S. Climate Action Partnership (USCAP), an alliance of business and environmental groups that has been pushing for cap-and-trade legislation.

An executive order issued by Arizona’s Governor Jan Brewer, a Republican, directs the state’s Department of Environmental Quality not to adopt rules under the Western Climate Initiative’s (WCI’s) cap-and-trade program without legislative authorization—but it stops short of withdrawing the state from the coalition that plans to implement a regional emissions trading program by January 2012.

The Arkansas Supreme Court is scheduled on April 15 to hear oral arguments in Southwestern Electric Power Co.’s (SWEPCO’s) appeal of a court decision that took away a permit to build the 600-MW John W. Turk Jr. coal-fired power plant in Hempstead County—the nation’s first ultrasupercritical project.

The first of two new supercritical 615-MW coal-fired units at the $2.3 billion Oak Creek power plant have come online, We Power said last week. Construction continues to complete the second 615-MW unit, and it is expected to be commercially operational later this year.

Ohio-based power company FirstEnergy Corp. last week announced it plans to buy Pennsylvania’s Allegheny Energy in a $4.7 billion deal. The stock-for-stock transaction—valued at $8.5 billion—is expected to create one of the largest U.S. utilities.

Investigative efforts continue into the cause and origin of Sunday’s catastrophic explosion that killed five workers and injured 27 others at Kleen Energy System’s natural gas–fired plant being built at a remote location in Middletown, Conn.

Executives from U.S. wind, biomass, geothermal, hydropower, and solar industry groups on Tuesday jointly called on Congress to enact tax incentives, a federal renewable energy standard (RES), and comprehensive legislation—measures they said would accelerate growth in those energy sectors.

The week brought important policy and technology news concerning carbon capture and storage (CCS) from around the world. President Barack Obama unveiled a task force to make “clean coal” a reality as the European Union struck a major deal with member states for CCS funding. Caterpillar joined the FutureGen Alliance, and Siemens Energy said it would conduct a feasibility study for a novel postcombustion CCS system in West Virginia.

Calpine Corp. last week received final approval to build its long-delayed 600-MW Russell City Energy Center in the City of Hayward, Calif. The Prevention of Significant Deterioration (PSD) permit issued by the Bay Area Air Quality Management District (BAAQMD) puts limits on the natural gas–fired power plant’s carbon emissions.