Tag: Power Plants

Power Plants Running Low On Coal Ahead Of Summer Peak, Industry Tells Regulators

Representatives from the coal industry testified in Washington Wednesday about rail service issues that could put a strain on the nation's power grid.

Representatives from the coal industry testified in Washington Wednesday about rail service issues that could put a strain on the nation’s power grid.

Coal use saw a resurgence last year, as higher natural gas prices and a stronger economy created more demand for electricity generated from coal.

But coal producers and consumers struggled to take advantage of those favorable conditions because of poor rail service, industry leaders told the Surface Transportation Board.

Coal shipments have been delayed because of lack of train crews, lack of locomotives and cars, and because of mechanical problems, they said.

“We would have run out if we had not curtailed generation at our coal-fired facilities,” said Emily Regis, fuel services manager for Arizona Electric Cooperative.

John Ward, executive director of the National Coal Transportation Association, testified that 75 percent of power plants nationwide have less than 40 days of coal stockpiled. He said 20 percent of power plants have less than 10 days of coal on hand.

“Dozens of generating units have been idled or are operating at very low capacity today as utilities attempt to conserve fuel for summer demand that is right around the corner,” he said.

Late last year, coal stockpiles fell to their lowest since 1978, Ward told members of the board.

The summer and winter months are when demand for electricity peaks. The rail service problems have affected other industries as well, including agriculture and manufacturing.

The Surface Transportation Board also heard from railroad labor organizations and executives. It could impose conditions on the railroads to improve service, but it is not yet clear what those might be.

Appalachian Power and Mon Power are among the utilities that have struggled to maintain an adequate supply of coal. CSX and Norfolk Southern are the primary rail companies in Appalachia.

Coal generated 22 percent of the nation’s electricity in 2021, according to the U.S. Energy Information Administration.

Appalachian Power is an underwriter of West Virginia Public Broadcasting.

Citing Cost of Coal, Mon Power Asks PSC for $94 Million Rate Increase

The company has filed written testimony in recent weeks to the PSC that the cost of coal has risen from $35 a ton in 2020 to $84 a ton.

Mon Power has asked the West Virginia Public Service Commission for a $94 million rate increase starting May 1.

The company has filed written testimony in recent weeks to the PSC that the cost of coal has risen from $35 a ton in 2020 to $84 a ton.

Mon Power spokesman Will Boye said the increase will add $9.12 a month to the average residential customer’s bill. The average bill would increase from $105.92 to $115.04, or about 9%.

“Adjusting costs now rather than waiting until the next annual fuel case will help avoid an even steeper cost increase at year end,” Boye said. “We work hard to keep energy costs manageable for our customers, and even with the proposed increase, our West Virginia rates would remain lower than those of surrounding states.”

Mon Power operates the Harrison Power Station in Harrison County and the Fort Martin Power Station in Monongalia County. Mon Power serves about 400,000 customers in West Virginia.

The increase will also affect Potomac Edison customers in West Virginia. Mon Power and Potomac Edison are subsidiaries of Cleveland-based FirstEnergy.

The company also cited winter disruptions in coal transportation, such as river icing, high water and lock and dam outages that prevented barges from moving. There was also a fire at the Harrison plant in February.

On Wednesday, Appalachian Power asked the PSC for a $297 million rate increase starting Sept. 1, citing many of the same challenges.

For a residential customer who uses 1,000 kilowatt-hours a month, that will add roughly $18 a month to the bill, according to the company.

Appalachian Power Asks PSC For $297 Million Rate Increase

The sharply higher cost of coal and natural gas is behind the request. Coal prices have more than doubled from a year ago, and natural gas prices have more than tripled.

Appalachian Power has asked the West Virginia Public Service Commission for a $297 million rate increase.

For a residential customer who uses 1,000 kilowatt-hours a month, that will add roughly $18 a month to the bill, according to the company. The current average residential bill is about $155 a month.

Appalachian Power serves about 1 million customers in West Virginia, Virginia and Tennessee.

The sharply higher cost of coal and natural gas is behind the request. Coal prices have more than doubled from a year ago, and natural gas prices have more than tripled.

An increased demand for electricity and Russia’s invasion of Ukraine have pushed prices to record levels. Coal was so scarce late last year that Appalachian Power had to idle its West Virginia plants for prolonged periods so they wouldn’t run out of fuel.

In a statement, Appalachian Power President Chris Beam called the request difficult but necessary.

“With the steep and rapid rise in energy and fuel costs over the past several months,” Beam said, “the revenues we collect from customers have been and are projected to be significantly less than the cost of the energy provided to customers.”

Appalachian Power is an underwriter of West Virginia Public Broadcasting.

Appalachian Power, For 2nd Time, Seeks Cost Recovery In Virginia

Appalachian Power has about 500,000 customers in Virginia who receive power from the Mountaineer and John Amos power plants.

Appalachian Power has gone back to regulators in Virginia to request approval of upgrades to two power plants in West Virginia.

Appalachian Power has about 500,000 customers in Virginia who receive power from the Mountaineer and John Amos power plants.

Last year, the State Corporation Commission rejected wastewater treatment upgrades for the two plants that are needed to keep them operating past 2028.

The company has asked again for Virginia ratepayers to share the cost of the upgrades with West Virginia. The West Virginia Public Service Commission gave Appalachian Power the go-ahead last year to proceed with the work.

But Virginia has the Clean Economy Act, which requires a transition from fossil fuels to renewables. Though the state’s voters elected a new governor, attorney general and House of Delegates last year, the law is not likely to be repealed.

If the commission denies the request again, Appalachian Power’s West Virginia customers will be paying for the upgrades all on their own.

West Virginia Power Plants Ran Out Of Coal In Late 2021, AEP Testifies

In testimony in recent weeks filed with the state Public Service Commission, American Electric Power told regulators it couldn’t replenish its coal supply after September because of high worldwide demand.

Late last year, the unthinkable happened. Power plants in West Virginia, the nation’s No. 2 coal producer, ran out of coal.

In testimony in recent weeks filed with the state Public Service Commission, American Electric Power told regulators it couldn’t replenish its coal supply after September because of high worldwide demand.

The price of natural gas skyrocketed last year as the economy rebounded from COVID-19. Coal prices rose, too, but it became the cheaper way to generate electricity.

AEP told regulators it couldn’t get Appalachian coal producers to replenish its coal stocks. The company even looked as far as Illinois and Wyoming.

As a result, the company had to idle its West Virginia power plants for longer periods than planned. Otherwise, they risked running out of coal during the peak winter months.

Additionally, AEP had to purchase electricity from other sources at a higher price. The company is asking the PSC for a 9.7% rate increase effective May 1.

Coal Plants Customers Will Pay To Upgrade Sat Idle For Parts Of 2021

Critics have questioned whether all three plants will be needed as coal continues to lose ground to natural gas and renewables.

Federal data show a northern West Virginia power plant was idle for a portion of last year as regulators approved a plan to upgrade the plant and charge ratepayers for it.

Unit 1 at the Mitchell Power Plant generated no electricity for three months in 2021, according to the U.S. Energy Information Administration.

Unit 2 at the plant, in Marshall County, was idle for one month.

The plant is jointly operated by American Electric Power subsidiaries Kentucky Power and Wheeling Power. West Virginia Public Service Commission is currently considering the sale of Kentucky Power to Algonquin Power.

AEP officials testified to the commission on Thursday that one of Mitchell’s units is currently idle.

Last year, the PSC approved wastewater treatment upgrades that’ll enable Mitchell and two other coal-burning plants in West Virginia to remain in operation beyond 2028. West Virginia ratepayers will be responsible for the cost.

Critics have questioned whether all three plants will be needed as coal continues to lose ground to natural gas and renewables.

The same federal data show that units at the Mountaineer and John Amos power plants were also idle for portions of 2021.

Mountaineer, in Mason County, did not generate electricity for two months in 2021. John Amos, in Putnam County, has three units. One unit at the plant was idle for three months, and the remaining units were idle for two months.

In total, the upgrades will cost ratepayers $448 million.

Officials also testified that both of Mitchell’s units, which are 50 years old, have significant corrosion from decades of burning high-sulfur coal. That suggests more costs going forward for ratepayers, in addition to the wastewater treatment upgrades.

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