Tuesday, August 18, 2009, 2:45pm EDT
Progress Energy plans to shut down coal plant, build $900M gas-fueled facilityTriangle
Business Journal - by Frank Vinluan Triangle Business Journal
Print Email Reprints RSS Feeds Add to Del.icio.us Digg This CommentsRelated News
North Carolina Supreme Court to hear Dominion Power-Kill Devil Hills dispute
Duke Energy asks for 12.6 percent rate increase
N.C. Utilities Commission approves Progress energy-efficiency incentives
North Carolina Sustainable Energy Association unhappy with Progress Energy plan
Progress Energy files suit after losing $9M utility-pole case
Progress Energy plans to shut down a coal-fired power plant – the Lee Plant – near Goldsboro and build a $900 million natural gas-fueled facility at the site, the Raleigh-based utility announced Tuesday.

The new natural gas-fired facility is expected to begin operations by 2013. Progress filed a certificate for the plant Tuesday with the North Carolina Utilities Commission and says it is working to bring the plant online as soon as possible in order to comply with the “Clean Smokestacks Act,” a state law that sets emission reduction targets for North Carolina utilities. By burning natural gas instead of coal, Progress says the facility will cut carbon dioxide emission rates by 60 percent, mercury emissions by 100 percent, sulfur dioxide by close to 100 percent and nitrogen oxides by more than 95 percent.

“The Lee Plant has been producing electricity reliably and cost-effectively for our customers for more than 50 years, but as emission targets continue to change, and as legislation to reduce carbon emissions appears likely, we believe in this case, it’s in the best interest of our customers to invest in advanced-design, cleaner-burning generation for the future,” Progress Energy Carolinas President and CEO Lloyd Yates said in a statement.

Progress (NYSE: PGN) says the new natural gas-fired units, which will replace three coal-fired units that comprise the Lee Plant, will increase the amount of electricity that can be produced at the site by about 550 megawatts. The Lee Plant can produce up to 474 megawatts of electricity. Progress says the additional capacity will be used to meet growing customer demand.

In seeking state approval for the new power plant, Progress is taking advantage of a law that went into effect in July that streamlined the certification process to 45 days from the standard six months or more. The utility says the shorter certification process will allow the utility to bring the plant online and meet the 2013 Clean Smokestacks emissions target deadlines.


Buck