After a relatively quiet period, there were a number of items of
interest on the air/climate front this week. First, AEP announced that upcoming pollution
controls would result in shutting down 6,000 megawatts of
coal-fired capacity, or 25% of its coal fleet. AEP also announced
that it would spend $6 billion to $8 billion in bringing the rest
of its fleet into compliance.
On the flip side of this issue, the Bipartisan Policy Center issued a report
concluding that compliance with the various EPA rules in the works
(Clean Air Transport Rule, Utility MACT Rule, coal combustion ash
rule, Clean Water Act intake structure rule, and NSPS for GHG)
would not have a significant impact on electric system reliability.
The quick summary is that most of the plants that will close are
uncontrolled, older, smaller, plants that already don't run
much, particularly with natural gas prices low. The report
acknowledges that some of these small plants are important in
addressing peak
