SRP POWER PLANT UPDATE

Transcription

1 SRP POWER PLANT UPDATE August 2016 Salt River Project

2 Coronado Generating Station Regional Haze Strategy 2

3 Coronado Generating Station 2 Units 800 MW (approx.) operation started SRP 100% owner Primarily PRB coal supply 213 employees 3

4 CGS Consent Decree 2008 Required significant investment in air pollution controls at a cost of nearly $500 million Air pollution controls included: Wet scrubbers and new stacks on both units in 2011/2012 Low-NOX Burners (LNB)/Overfire Air (OFA) on both units in 2009/2011 Selective Catalytic Reduction (SCR) on Unit 2 in

5 NO x Emissions (tons/year) NO x Reductions Unit 1 LNB/OFA Installed Unit 2 LNB/OFA Installed Unit 2 SCR Installed

6 SO 2 Emissions (tons/year) SO 2 Reductions Low-Sulfur PRB Primary Fuel Supply Unit 2 Wet Scrubber Installed Unit 1 Wet Scrubber Installed

7 CGS Federal Implementation Plan EPA issued FIP for CGS in December 2012 Plant-wide NO X = lb/mmbtu (30-day avg) Unit-specific PM 10 = 0.03 lb/mmbtu (performance test) Unit-specific SO 2 = 0.08 lb/mmbtu (30-day avg) EPA proposed FIP Reconsideration in March 2015 Includes unit-specific NO X emission limits lb/mmbtu (30-day avg) for Unit lb/mmbtu (30-day avg) for Unit 2 EPA approved FIP Reconsideration in March 7

8 Clean Power Plan On October 23, 2015, EPA published carbon rules for coal and natural gas power plants On February 9, 2016, U.S. Supreme Court issued a stay of the carbon rules The D.C. Circuit Court will hear oral arguments on the carbon rules for existing sources on September 27 Creates further uncertainty for existing coalfired power plants, including CGS 8

9 CGS Interim BART Alternative Operating Strategy CGS Unit 1 Implements Interim BART Alternative Operating Strategy to achieve greater visibility improvements Selects seasonal curtailment period depending on emissions performance Addresses Clean Power Plan and BART requirement conflicts CGS Unit 2 No shutdown periods Interim BART Alternative Operating Strategy in AMC Air Quality effect Conference, until SRP, August December

10 CGS BART Alternative Proposal 10

11 Interim BART Alternative Curtailments Interim BART Alternative Curtailments Curtailment Period 1: October 1 April 15 Curtailment Period 2: October 21 January 30 Curtailment Period 3: November 21 January 20 Curtailment Period 4: November 21 January 20 Length of Curtailment Period NO X lb/mmbtu SO 2 lb/mmbtu 196 days days days days

12 CGS Regulatory Timeline ADEQ Permitting and SIP Revision Timeline July Sept ADEQ issues permit and SIP for 30-day public comment period Sept. Nov ADEQ responds to public comments Nov ADEQ issues permit and submits SIP revision to EPA 12

13 CGS Regulatory Timeline EPA Rulemaking Timeline Nov Mar EPA SIP review Mar. Sept EPA publishes proposed rule for SIP EPA opens 60-day public comment period Sept. Oct EPA publishes final rule for SIP Nov SIP effective date 30 days after publication 13

14 Biomass Co-Firing at CGS SRP is evaluating impacts of co-firing biomass at CGS Planning a test burn in late fall or early winter Test burn duration 20 days Evaluating 2%-5% biomass Approx tons of biomass Forest Partnerships U.S. Forest Service State of Arizona 14

15 Biomass Co-Firing Benefits Reduced risk of catastrophic wildfires Reduced air emissions Forest-thinning material being consumed in controlled environment Potentially improved water quality Reduced incidents of ash and sediment entering water systems 15

16 Navajo Generating Station Operations Extension 16

17 Navajo Generating Station Constructed in early 1970s 3 coal-fired units, 2,250 megawatts (MW) Located on Navajo Nation Operated by SRP; five participants Over 520 employees, AMC 85% Air Quality Navajo Conference, SRP, August

18 Challenges Facing NGS Site lease terms and rights-of-way begin to expire in 2019 Multiple Federal approvals required to extend Environmental Impact Statement Uncertainty about future ownership Uncertainty about CPP requirements Legal challenges to environmental requirements 18

19 Questions? 19