I finally got around to reading the comments submitted by utilities to DEP's request for input on their CPP feasibility study and SIP. Here are some notes. These documents are posted at:
In summary, everyone agrees that WV should seek a 2-year extension, and utilities see trading emissions credits as the main way to comply, unless HB 2004 is amended.
Note: It appears the utilities got the input request Aug. 18, with supplemental request Sept. 18. Comments were filed Nov. 6. That may explain the timing of Patton's remarks last fall. Our letter from DEP was dated Oct. 7, so they got a two-month head start.
AEP
AEP says that a SIP is not feasible under HB 2004 because "may' is interpreted to mean "may only" consider inside the fence controls, etc. The only option is to trade ERCs with other states. But 22-5-18 which authorizes trading is limited to criteria pollutants and would not authorize a trading program for CO2.
Existing statutes, 22-5-4(a)(15) and (16), limit ability of DEP to require monitoring of EE or renewables on homeowners.
AEP says they cannot give specific details on costs without knowing what will be required from DEP.
AEP says none of their units (Amos, Mitchell or Mountaineer) will retire before 2030 deadline for the CPP.
Recommends changes to HB 2004 and prefers a SIP to a FIP.
FE:
FE cites Texas study to say rates will increase, but has no WV-specific information.
FE cites NY study that higher electric rates negatively affect health of low-income populations (Children's Health Watch, "The Impacts of Increasing Household Energy Prices on Health and Health Care Cost in
New York State," May 2013. )
FE says costs cannot be predicted until state rules have been established.
FE (and AEP) says many plants have shifted from base-load operation to :"load-following" which adversely affects heat rate.
FE says their pants typically have a 70-year lifespan. (But Hatfields Ferry closed at 43 years old, Albright and Willow Island closed at 63). FE currently operates Pleasants, Harrison and Fort Martin plants in WV (currently 35-45 years old).
FE says the emissions rates are not feasible, but WV should seek an extension to 2018.
Dominion
Operates Mount Storm plant.(3 units- 42-50 years old)
Says HB 2004 precludes outside the fence controls. Would need to rely on ERCs from trading. Increasing costs and lower utilization increases likelihood of plant closings. Closings will lead to higher "Capacity" costs.
Recommends trading with other states and multi-year averaging of emissions. WV should allow fuel switching etc.
Longview
Currently operates newest and lowest heat rate of any WV plant (8700 btu/kwh). Would need to acquire ERCs to keep operating. Recommends they be allocated to EGUs "without cost".
Since Longview transports coal via conveyor belt, not trucks, that )house load" electricity would count against its calculated generation and point of transmission,effectively penalizing Longview for avoiding impacts of truck traffic.
No comments on limits of HB 2004, or on preference for SIP versus FIP.
UMWA (Cecil Roberts)
Recommends DEP seek 2-year extension and avoid a FIP.
Recommends state use bonding authority through PEA to create new base-load gas-coal co-fired plants. Also wants legislation to assure cost recovery for developers.
Prefers mass-based approach to take advantage of coal plant retirements since 2012.. Recommends "in-state" trading and renewables to meet targets.
Says HB 2004 imposes "constraints" on fuel switching, etc.
Says legislature should beef up EE programs for utilities.
Says the endangerment finding means a lower carbon future regardless of which party wins the White House.
Dept. of Commerce (Keith Burdette)
Developers are bringing gas plants on-line that will meet CPP standards.
But America will need WV's existing base load power for the foreseeable future.
Estimates that compliance will reduce WV generating capacity by 4200 MW and cost 435 power plant job and 3770 mining jobs.
Low electric rates is one of the advantages WV has to recruit new industry.
Recommends allowances be allocated to EGUs based on current generation.
Recommends using credits form CEI program and EE from Low Income EE programs. Rate increases will incentivize EE and RE.
Recommends using forests for carbon mitigation. Existing forests take up 10 % of CO2 emitted, and SIP should take advantage of this.
Attorney General Morrisey
WV should seek 2-year extension, "under protest" as CPP is unlawful. Repeated their legal objections.
Jim Kotcon