Power Plant Rule is Delayed

Reuters reports that efforts by U.S. regulators to cut air pollution from coal-fired power plants faced a setback on Friday when a federal appeals court issued a last-minute order delaying their January 1 implementation.

The U.S. District Court of Appeals granted a request to stay the Environmental Protection Agency's (EPA's) Cross-State Air Pollution Rule (CSAPR) pending further court review.

The EPA finalized the rule in July, setting much stricter limits on sulfur dioxide (SO2) and nitrogen oxide emissions from power plants in 27 states to protect the health of residents in states downwind from the emissions.

Power generators said the January 1 implementation date was too soon to allow the design and installation of pollution control equipment to meet the rule, forcing a number of units to shut or to run only part of the time.

The group responsible for keeping the U.S. power grid reliable has warned that the cumulative impact of the EPA's rules could create power problems in Texas and New England.

Proponents of stricter rules say the industry can adapt and maintain that the costs of implementing the rules will be offset by savings from reduced healthcare expenses.

The EPA estimated that the Cross State rule will save up to 34,000 lives, prevent 15,000 heart attacks and prevent 400,000 asthma attacks each year, providing $120 billion to $280 billion in annual health benefits for the nation.

Texas challenged the EPA rule because the state was included in the final version without having an opportunity to provide input on its impact in Texas. State regulators who met later with EPA officials said the agency used faulty assumptions about the state's power grid.

Electric Grid in Texas Faces Multiple Challenges

The following was gleaned from an article in the December 23 New York Times.

Electric Grid in Texas Faces Multiple Challenges

The state’s electric grid operators are coming off a tumultuous year, one they are not eager to repeat. In February, a deep freeze knocked numerous power plants out of commission as equipment broke, causing rolling blackouts across the state. Then the hottest summer on record spurred repeated conservation warnings, as grid managers worked — successfully — to avoid more blackouts.

While experts do what they can to check the skies and the temperature, grid operators are facing a tougher line of questioning about their ability to keep power flowing smoothly. A report last month by the North American Electric Reliability Corporation cited “significant concerns” about whether Texas would have enough power plants in the near future.

Regulators, eager to avoid blackouts at all costs, want to encourage construction of more power plants to meet the needs of a growing state. But consumer advocates fear this could mean higher electricity prices. Environmentalists are lobbying instead for more focus on energy savings.

Environmentalists argue that the strains on the grid should spur Texas to work on energy-saving strategies. In particular, they are pushing a program called demand response, in which businesses and consumers are paid to reduce power at times of high demand, like late summer afternoons.

The utility commission is looking at expanding Texas’s demand-response capabilities next year, helped by the continuing rollout of smart meters.

Robert King, president of the Austin consulting firm Good Company Associates, said two of his energy clients planned on beginning demand-response programs in Texas next year for the first time.

The commission is also considering regulatory changes that should make storing electricity in batteries easier.

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Dozens of Power Plants Closing

The following is an excerpt from an article by The Hill.  I am not sure that imposing tough new environmental regulations in a fragile economy with high unemployment is the smartest thing that we could be doing as a nation. But no one asked me for my opinion.

Dozens of Power Plants Closing Due to New EPA Rules

December 21, 2011

The Hill

BRIAN KOENIG

Due to new federal air pollution regulations, more than 32 power plants across the country will be forced to close their doors, according to a recent Associated Press survey. Those plants, which are mostly coal-fired, discharge enough electricity to supply more than 22 million households, the survey notes, and their closure will lead to job layoffs, depleted tax revenues, and a considerable hike in electric bills. The areas that will be hit hardest are the Midwest and in the coal belt (Virginia, West Virginia, and Kentucky), where dozens of plants will likely be retired.

Two regulations are in question: One aims to curb air pollution in states downwind from pollutant-heavy power plants; and the second, which was finalized last week, would enact the first standards for mercury, acid gas, and other pollutants from plant smokestacks. In total, the new regulations could eliminate more than eight percent of coal-fired generation nationwide.

AP’s survey, the first of its kind, looked at the analyses by the Environmental Protection Agency (EPA) of plant retirements and interviewed 55 power plant operators about the effects on power supply and about their plans to deal with the new regulations.

Basing their assertions on energy analyses, congressional reports, and government regulators, critics have predicted that the new EPA regulations will lead to widespread blackouts, and possibly the retirement of coal as a power source altogether. However, proponents of the rules claim that those studies inflate closure numbers by considering plants shutting down for reasons other than the EPA’s new restrictions.