Plant Washington to Offer Reliable and Affordable Electricity to Citizens of Georgia

(BUSINESS WIRE)--Power4Georgians, a consortium of 10 Georgia EMCs that have partnered to develop a comprehensive strategy to meet demand for affordable and reliable energy in Georgia, today emphasized its position that coal is an essential cornerstone to fulfilling that strategy.

“While we are proponents of viable alternative energy projects such as wind, solar, biomass, etc., none of those options can come close to fulfilling large scale needs in the near future,” said Dean Alford, spokesman for Power4Georgians.

Some opponents of coal have spread misinformation indicating that to build and operate Plant Washington in a safe and environmentally responsible manner is not economically viable. There are many flaws in their argument; specifically they claim that the prices for materials used in construction are escalating rapidly, which is not true. Steel for instance has declined from its July price of $1,000 per ton to about $500 per ton today. Perhaps most significant are opponent claims that the cost of coal continues to rise when the reality is, coal has declined approximately 40% since July.

“It is ludicrous to believe that we would move forward with Plant Washington if we weren’t certain that it was economically viable,” said Dean Alford, spokesman for Power4Georgians. “I can assure you, nobody is more cognizant of cost than the co-ops involved in this project.”

To be built and operated near Sandersville in Washington County, Georgia, the plant will provide an enormous economic boost for the region and indeed the entire state. Capital investment is expected to be approximately $2.1 billion. For comparison sake, the much publicized Kia manufacturing plant in west-central Georgia represents an investment of $1.2 billion.

Plant Washington will create more than 1,400 jobs during the construction phase of the project and approximately 130 full time jobs when the plant is placed into operation. In addition, 300 support jobs in ancillary businesses will be created in the region when the plant opens.

“This is a perfect example of a project that will provide great benefit to the people of Georgia at a time when it is needed most,” Alford said.

With Georgia’s rapidly growing population - and even with Plant Washington contributing 850 Megawatts to the state’s power grid - consumption of electricity will outstrip supply within the next decade unless new generation facilities are built and placed into operation.

“Power4Georgians believes in an ‘all in’ strategy which means we fully support solar, wind, biomass, nuclear and coal generation facilities. Georgia needs every bit of electricity that can be generated if we are to assure that when the switch is flipped, the lights come on now and for years to come,” Alford concluded.

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Cleaner Coal Technology Key to the World’s Energy Future

(BUSINESS WIRE)--GE Energy and the University of Wyoming today announced an agreement to further cleaner coal technology, making coal-fired power generation more viable in America. Under the agreement, GE and the university will develop the High Plains Gasification Advanced Technology Center to accelerate the commercial use of cleaner coal technology.

In the United States, coal supplies more than 50 percent of the country’s current electricity generation and it plays an important role in meeting the nation’s energy needs. Coal is an abundant, low-cost, domestic, natural resource that continues to be a significant part of America’s energy mix.

Wyoming is uniquely positioned in the nation’s energy landscape and has vast coal resources capable of supporting a substantial portion of the nation’s energy needs. The state produces approximately 40 percent of all of the coal used in the United States to generate electricity.

The new center will include a small-scale gasification system that will enable researchers from GE and the university to develop advanced gasification solutions for Powder River Basin and other Wyoming coals. The research is expected to expand the range of coals that can be used with GE’s integrated gasification combined-cycle (IGCC) technology for power plants. The facility is expected to be operational by 2012.

To create a path forward for coal, future climate change policy will be needed to incentivize the deployment of already-available low carbon technology and to foster further improvements that will bring down the cost of carbon capture and sequestration.

“This project underscores the commitment of both the University of Wyoming and GE to work toward U.S. energy independence and plan for future energy needs,” said Steve Bolze, president and CEO of GE Energy’s Power & Water business. “We believe that our country’s energy and environmental policies should promote a balance of available, reliable, cleaner and low-cost energy. The use of cleaner coal technology helps create jobs, support economic growth and positively impacts the environment.”

GE is a world leader in IGCC technology and has been at the forefront of IGCC technology since the Coolwater project, a 120 MW technical demonstration IGCC project started in 1984. GE's IGCC technology also has operated at the 250 MW TECO Polk I station in Florida for more than 12 years. Today, GE offers a 630 MW IGCC reference plant that produces 75 percent less SOx, 33 percent less NOx, 40 percent less particulate matter, uses 30 percent less water and offers 90 percent mercury capture, compared to a traditional pulverized coal plant.

In addition to providing a cleaner alternative for power generation, IGCC is well-suited for carbon capture. Carbon capture technology is in use in GE’s industrial gasification applications around the world today. IGCC technology will offer cost and efficiency advantages for carbon capture and storage, once clear policies and regulations are in place to support storage and an economically viable value is established for carbon.

Although IGCC technology is relatively new, gasification is more than a century old. The process uses pressure, heat and steam to convert carbon-based materials like coal into a synthesis gas (syngas) that has a variety of uses including the production of chemicals or fertilizers and power generation.

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The Brattle Group Projects $1.5 to $2.0 Trillion Investment Needed in the U.S. Electric Utility Industry by 2030

PRNewswire/ -- The U.S. utility industry will have to invest between $1.5 and $2.0 trillion between 2010 and 2030 to maintain current levels of reliable energy service for customers throughout the country, according to a new report issued today by The Brattle Group. The findings are detailed in "Transforming America's Power Industry: The Investment Challenge 2010-2030," presented today by Peter Fox-Penner, a principal of The Brattle Group, at the Edison Electric Institute's 43rd Financial Conference. The report was sponsored by the Edison Foundation.

"This study highlights the investment challenges confronting the power industry in the coming decades," said Dr. Fox-Penner. "The industry is facing enormous investment needs during a period of modest growth, high costs, and very substantial policy shifts," he explained.

All types of new generation capacity will be needed, including natural gas, coal, nuclear, and renewables. Nearly 40 gigawatts of new renewable capacity will be needed just to meet state requirements. Significantly, capital spending to upgrade distribution and transmission facilities nationwide may surpass investment in new generation, the study found. Spending on "smart grid" technologies to ramp up efficiency -- along with new power lines to integrate renewable electricity sources -- will account for much of that spending.

"The good news is that as a result of this very significant investment, our economy and utility customers will get more efficiency and control over their electricity use, lower-carbon generation, and a higher-technology, more resilient and reliable electric grid," Dr. Fox-Penner said.

The report, which follows highly publicized preliminary results introduced in April 2008 at an Edison Foundation conference, analyzes four possible scenarios that measure the impact of energy efficiency and demand response program implementation on investment needs and new plant construction. In the base case scenario, which does not account for new climate policies, the total investment needs are projected to reach $1.5 trillion. Implementation of a federal carbon policy would significantly increase the capital cost and change the mix of new generation capacity; for instance, a simplified model of one scenario with carbon controls would require an increase in total capital spending to $2 trillion.

Another key finding in the study is a large potential reduction in the need for new generation capacity, due to the faster than previously estimated implementation of energy efficiency and demand response programs. In the preliminary results, energy efficiency was estimated to potentially reduce new capacity by 17%. In the final results, the potential reduction in new capacity is projected to be approximately 38%. However, reductions in new required capacity will not correlate to an equal reduction in total investment due to the offsetting costs of implementing the efficiency programs.

"It is important to emphasize that while energy efficiency and demand response programs can significantly reduce the need for new generation capacity, they cannot eliminate the need for new power plants," Dr. Fox-Penner observed.

Marc Chupka and Robert Earle, principals of The Brattle Group, directed the study which is available at www.brattle.com and www.edisonfoundation.net.

The Brattle Group provides consulting services and expert testimony in economics and finance to corporations, law firms, and public agencies worldwide. Areas of expertise include antitrust and competition; electric power, natural gas, and petroleum; valuation and damages; and regulation and planning in network industries. For more information, visit www.brattle.com.

The Washington-based Edison Foundation is dedicated to bringing the benefits of electricity to families, businesses, and industries worldwide.

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Georgia Power Seeks Approval for Coal Plant Conversion to Biomass

PRNewswire/ -- Georgia Power today asked the Georgia Public Service Commission (PSC) for approval to convert coal-fueled Plant Mitchell to renewable wood biomass.

Upon conversion, Plant Mitchell - near Albany - would be capable of producing 96 megawatts of renewable energy - or enough electricity to power 60,000 homes. The plant would have lower emissions, and would be one of the largest wood biomass plants in the United States. It would also have lower fuel and operating costs when compared to continued operation using coal, thereby making the plant more cost-effective for customers.

Surplus wood fuel for Plant Mitchell would come from suppliers operating within an approximately 100-mile radius of the plant.

"Georgia Power is taking an important step toward continued diversification of its fuel sources and making renewable energy more affordable for customers," said Mike Garrett, Georgia Power president and CEO. "By converting Plant Mitchell to biomass, we hope to not only help grow the renewable resource base in Georgia but also to expand the market for renewable energy credits, which ultimately will foster additional renewable energy development."

Renewable energy credits are created when a renewable energy facility generates electricity or uses renewable fuel. The PSC is expected to rule on the proposal to convert Plant Mitchell to biomass by spring of 2009. Retrofit construction would begin by spring of 2011 and the biomass plant would likely begin operations in June 2012.

Georgia Power is the largest subsidiary of Southern Company, one of the nation's largest generators of electricity. The company is an investor-owned, tax-paying utility with rates well below the national average. Georgia Power serves 2.3 million customers in all but four of Georgia's 159 counties.

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