A decision by the Environmental Protection Agency to curtail emissions from coal-fired power plants starting Jan. 1 could jeopardize adequate supplies of electricity in Texas, the head of the state's power grid said Tuesday.
Noting that coal plants generated 40 percent of the state's power last year, Trip Doggett, president of the Electric Reliability Council of Texas, said in a statement that the mandated cut in emissions "is unreasonable because it does not allow enough time to implement operational responses to ensure reliability."Doggett said that while ERCOT does not advocate for or against public policy, "it is our role to voice our concern that Texas could face a shortage of generation necessary to keep the lights on in Texas within a few years" if the EPA plan goes into effect as written.The EPA's new Cross-State Air Pollution Rule, which applies to 27 states, aims to reduce emissions of sulfur dioxide and nitrogen oxides, which contribute to smog, soot and acid rain. It was issued July 7.In response, EPA assistant administrator Gina McCarthy said in a statement that "Texas power plants will be able to cut their pollution without jeopardizing reliable electricity service for Texans." She said 42 percent of sulfur dioxide emissions covered by the new rule comes from three plants that together account for 13 percent of the state's electricity generation."The balance of Texas power generation is already relatively clean and will not face a heavy compliance burden under this rule," McCarthy's statement said.Tom "Smitty" Smith, of Public Citizen, said ERCOT "is blowing smoke" with its warning.Smith said the EPA ruling is just one in a string of federal decisions cracking down on coal emissions, and he predicted that it will likely result in an extension of the deadline in exchange for power generators' agreements to cut emissions by installing pollution-control equipment or retiring their worst polluters. He said that has already happened in Oklahoma.Smith said that cleaner sources of electricity could be provided quickly by wind power now coming online along the Texas coast and restarting mothballed natural gas-fired plants. He added that improving energy efficiency in the state could also help keep electricity supply and demand in balance."This is just another scare tactic to prop up old coal and slow the transition to a clean economy," Smith said.Karen Hadden, executive director of Sustainable Energy and Economic Development, a supporter of clean energy, said San Antonio's municipal power service just announced plans to retire two older, coal-fired plants with 780 megawatts of total capacity. They will be replaced with a 400-megawatt solar project, as well as other efficiency and clean energy alternatives, Hadden said.Also on Tuesday, Merrill Lynch investment analysts said the EPA rule will likely accelerate the replacement of coal-fired plants by natural gas-fired plants around the nation."The new and final EPA rule is a game-changer," the analysts said. "For the whole country, we estimate that coal-to-gas switching amounted to 3.4 billion cubic feet a day so far this year, 1.6 billion a day more than in the same months last year, despite new coal plants coming online."Last week, Energy Future Holdings of Dallas said the new rules will likely cause it to mothball some operations, particularly at plants that burn lignite, a low-grade coal. A spokeswoman said the company, the former TXU, could not bring its coal-fired plants into compliance by Jan. 1, and in the short term might cut back generation from the facilities or temporarily idle them.This report includes material from Bloomberg News.Jim Fuquay, 817-390-7552Have more to add? News tip? Tell us
