Texas power crisis tune changes quickly

[peejay 327]

Is Corporate America and our elected government full of #######, lies, and deception or what? We went from fast track approval to no track approval for 11 old technology coal fired power plants that apparently are not needed except to boost profits at the expense of air quality. What a charade!

Texas power crisis tune changes quickly

Mothballed natural gas-fired plants will replace formerly touted coal power

By TOM FOWLER

2007 Houston Chronicle

Just a week ago, Texas was facing a power crisis in the coming years if the state didn't green-light TXU's plans to build 11 coal-fired power plants.

At least that's what TXU and its supporters said.

What a difference a few days can make.

TXU said Tuesday it's now prepared to bring as much as 1,400 megawatts of mothballed natural gas-fired power generating capacity back on line to meet the state's power needs in the coming years. One megawatt can power as many as 800 homes.

The willingness to bring less profitable gas plants back on line came after investors planning to buy the Dallas-based power giant promised environmental groups it would cancel eight of the more profitable coal plants in exchange for their support.

The coal plants will be replaced with a doubling of wind power purchases, a $400 million commitment to conservation programs to reduce the need, and the return to service of the gas plants.

During a hearing before the Texas House's Regulated Industries Committee on Tuesday, Fred Goltz, a partner with one of the buyers, Kohlberg Kravis Roberts & Co., described the new strategy as " ... trying to walk a difficult tightrope between continued demand on one side and environmental responsibility on the other."

This is a different solution from the one TXU was pushing before the buyout was announced.

"Even though our plans and strategy may have shifted, the state's need for power doesn't change," TXU spokeswoman Kim Morgan said.

The relative swiftness with which the company changed its tune shouldn't be a surprise, say groups that had been fighting the plants.

Strong statements that rolling blackouts were on the way if the coal plant projects didn't move forward were simply exaggerations, said David Hawkins, director of the Natural Resources Defense Council's climate center and one of the parties to the agreement with the investors.

"It had nothing to do with the needs of Texas citizens and reliability," Hawkins said. "It was simply an exercise in trying to dominate the field. It was literally a power play."

When TXU announced plans for some of the coal plants in late 2005, the state appeared to be in good shape for meeting its future power needs.

Deregulation of the state's power markets in 1999 led to an explosion in new power plant construction, particularly cleaner-burning natural gas plants. The state's heavy reliance on natural gas capacity was in part to blame for high retail power prices when natural gas prices started to rise steeply in 2005.

But in early 2006 the Electric Reliability Council of Texas, which oversees the power grid for most of Texas, made a significant revision to its annual capacity demand reserve report.

Ideally the grid should have 12.5 percent more power generation capacity than it needs to handle the surge in power use that occurs every summer. The 2006 revision predicted growing power demand would lead the margin to dip to 11.4 percent in 2008, 8.5 percent in 2009 and 7.2 percent in 2010.

A number of groups used the report as a rallying cry to move ahead quickly with the coal plant construction projects.

TXU's commitment to bring the natural gas plants out of mothballed status is expected to improve the margins.

ERCOT officials said they have not adjusted their reserve report to reflect TXU's new plans. A report is scheduled to be published in May, but lawmakers may ask for an update before then.

http://www.chron.com/disp/story.mpl/headli...iz/4588383.html

[Saddle Bronc 124]

It's nice that they're trying to avoid importing coal (US coal is mostly produced in Appalachian region) and using something produced in the state (gas/condensate as byproducts of oil production, as well as separate).

[peejay 327]

To be sure...this isn't a one-way street. The corporation will make less profit and the consumer (me) will pay more for power.

But I'd rather breath cleaner air. Nothing subversive about that!

Edited February 28, 2007 by peejay

[Saddle Bronc 124]

Another factor which I didn't bother with earlier: the import (transport) of coal is certainly going to generate more emissions than pumping of gas a much shorter distance.

[almaty 19]

i agree...sounds like texas used it's head on this ..clean air is essential

[Yodrak 7]

CherryXS,

Not true. There is a lot of coal minded in the Dakotas (the Black Hills got that name for a reason), and there's a lot of lignite coal down Texas way.

The USA does not import coal.

Yodrak

It's nice that they're trying to avoid importing coal (US coal is mostly produced in Appalachian region) .....

[Yodrak 7]

peejay,

Half true - the corporation will make the same profit, but the consumer will pay more for the power.

As to the air, that's a close call. Burning gas can produce a lot of NOx without proper combustion and cleanup technologies, and burning coal can do the same plus the particulate and combustion products of the things that are in the coal without proper combustion and cleanup technologies.

Properly designed and maintained, both can be fairly clean, but the coal plants will always produce more CO2.

Yodrak

..... The corporation will make less profit and the consumer (me) will pay more for power.

But I'd rather breath cleaner air. Nothing subversive about that!

[peejay 327]

CherryXS,

Not true. There is a lot of coal minded in the Dakotas (the Black Hills got that name for a reason), and there's a lot of lignite coal down Texas way.

The USA does not import coal.

Yodrak

It's nice that they're trying to avoid importing coal (US coal is mostly produced in Appalachian region) .....

I think he meant importing from out of state rather than out of the country.

There are huge reserves of low sulphur coal in Wyoming and I have read this coal is prefered for that reason. Different coals from different deposits have different positive and negative qualities. Some varieties produce more energy per ton. Some produce more pollutants than others. Still others are cheaper to extract. There are many varieties of crude oils to that have positive and negative qualities too.

[one...two...tree 2,762]

To be sure...this isn't a one-way street. The corporation will make less profit and the consumer (me) will pay more for power.

But I'd rather breath cleaner air. Nothing subversive about that!

Deregulation of energy is costly to the consumer and the environment...without exception.

[almaty 19]

To be sure...this isn't a one-way street. The corporation will make less profit and the consumer (me) will pay more for power.

But I'd rather breath cleaner air. Nothing subversive about that!

Deregulation of energy is costly to the consumer and the environment...without exception.

so true!!!!! ask illinois where Amren just rammed 30% rate hikes and the citizens are raising hell..so congress is meeting to roll the rates back..freeze them and make amren pay bakc the increase...this all ahppen recently to dereg.

[one...two...tree 2,762]

To be sure...this isn't a one-way street. The corporation will make less profit and the consumer (me) will pay more for power.

But I'd rather breath cleaner air. Nothing subversive about that!

Deregulation of energy is costly to the consumer and the environment...without exception.

so true!!!!! ask illinois where Amren just rammed 30% rate hikes and the citizens are raising hell..so congress is meeting to roll the rates back..freeze them and make amren pay bakc the increase...this all ahppen recently to dereg.

Whoa, brother Dean. I just did a Google search of Amren and I got this...

http://www.amren.com/

A conservative monthly publication. Promotes a variety of white racial positions.

Probably not same group.

[Saddle Bronc 124]

I think he meant importing from out of state rather than out of the country.

Exactly.

There are huge reserves of low sulphur coal in Wyoming and I have read this coal is prefered for that reason. Different coals from different deposits have different positive and negative qualities. Some varieties produce more energy per ton. Some produce more pollutants than others. Still others are cheaper to extract. There are many varieties of crude oils to that have positive and negative qualities too.

Generally, "prairie coal" (the kind found in Wyoming, but mostly in AB) is the best kind