Beruflich Dokumente
Kultur Dokumente
BUSINESS & TECHNOLOGY FOR THE GLOBAL GENERATION INDUSTRY SINCE 1882
THE DIGITAL
TRANSFORMATION
OF ELECTRICITY
A dynamic transformation is underway across
technology.
said.
platform, Predix.
Bolick said.
IT TAKES AN INCREDIBLE
AMOUNT OF ENERGY TO POWER
THE INFORMATION HIGHWAY.
AND NOW WED LIKE
TO RETURN THE FAVOR.
ge.com/predix
June 2016
ON THE COVER
Preparing the next generation of plant workers involves using some new techniques, including video. The Electric Power Research Institute recently launched
a series of training videos called What Does [Blank] Look Like? to demonstrate
good operating practices to new power plant workers. Here, IMIGpro.com filming
crew members (left to right) Russell DeShields, Ted Villa, Chris DeShields, Hudson
Hower, David Tolentino, and Lance Duguay show their enthusiasm in front of Duke
Energys H. F. Lee Combined Cycle Plant, with actor Nathan Rouse in the background. Courtesy: IMIGpro.com/EPRI
SPEAKING OF POWER
Power Work Shifts
GLOBAL MONITOR
Venezuela Faces Existential Power Troubles
A Power Famine for Colombia But a Feast for Brazil, Paraguay
THE BIG PICTURE: A String of Retirements
Chinas New Five-Year Plan Bolsters Climate, Environmental Measures
Proposal for Offshore Wind Battery Storage Launched
GE-Hitachi Exits Nuclear Laser-Based Enrichment Venture
POWER Digest
8
9
10
11
12
13
14
FOCUS ON O&M
Use Near-Miss Incidents as a Preventive Tool
Ultrasonic Diagnostic Tool Detects Leaks, Bearing Wear, and Corona
Discharge
16
18
20
By Thomas W. Overton, JD
22
22
Forward-thinking power industry firms have found that understanding the similarities and differences between younger and older workers is helping to inform
new approaches to recruitment, training, promotion, and career planning.
28
32
www.powermag.com
36
28
1
40
Determining the best approach for the disposition of coal ash, in light of new
regulatory requirements and increased public oversight, requires ensuring
that the best practices shared here are coupled with detailed understanding
of site-specific considerations.
RELIABILITY
Risk-Based NERC Compliance: Assessing Risk to Bulk Power System
Generation
40
45
NUCLEAR POWER
Is There a Market for Small Modular Reactors?
48
After years of hype and anticipation, two generators are taking meaningful
steps toward constructing the first small modular reactors. Can you guess
what they have in common?
ELECTRIC POWER
Disruptive Digital Technologies Are Key to Power Industrys Future
51
Headliners for this years ELECTRIC POWER Conference & Exhibition keynote
session, Entergy Corp.s Leo Denault and GE Power Digitals Scott Bolick, gave
attendees examples of what it takes to create a utility of the futurefrom new
technologies to new ways of developing tomorrows workforce.
48
53
The conversation among industry executives this year underscored the ways
in which all generators face multiple challenges but are addressing them in
different ways. New this year: a discussion of approaches to hedging natural
gas prices.
COMMENTARY
Learning from the Clean Air Acts Tragic Flaw
64
By Richard L. Revesz and Jack Lienke, New York University School of Law
51
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Venezuela Faces
Existential Power Troubles
Oil-rich Venezuela is gripped by a power
crisis so debilitating that the government
has instituted four-hour daily blackouts
across most of the country, forced hotels
and malls to generate their own power,
and required heavy industries to slash
power usage by 20%. In desperation, the
government also closed the entire country
for five days during the Easter holidays in
March, reduced the public sector workweek
to two days, declared that every Friday
will be a national holiday, and lately, even
ordered citizens to set clocks half-an-hour
ahead to save power. But these measures
have come with consequences: Power cuts
have incited riots and looting in the countrys second-largest city, Maracaibo, and
the crisis has emboldened an opposition
movement that is seeking a referendum
to oust President Nicols Maduro, whose
term ends in 2019.
The government blames the crippling
power shortages on a severe drought
the worst in 40 yearsa result of the El
Nio weather phenomenon. Particularly
affected is the 10.2-GW Simon Bolivar
hydroelectric facility, the worlds fourth
largest, which reaps energy from the
now-withered Caroni River via the massive concrete gravity Guri Dam and on its
own generates about 73% of the countrys power. The Ministry of Electrical
Energy said in March that the Guri Reservoirs water levels had fallen to 244.9
meters (m) above sea level and warned
that the dam could reach a collapse
zone if water levels fall below 240 m
(Figure 1). Such low levels could jeopardize the operational safety of the Simon
Bolivar plants turbines, it said. Two of
the plants 20 turbines have already been
shut down owing to equipment trouble,
and at least six more will need to idle if
reservoir levels drop. Desperation in high
gear, state power corporation Corpoelec
this April began dredging workusing
heavy machinery and laborers with picks
and shovelsto funnel vital liquid to
the turbines.
Corpoelecan entity created in
2007 through the merger of 10 stateowned and six privately owned power
companieshas also pegged the crisis
on shortages of natural gas and diesel
supply to its newer plants, owing to financial delays, as well as to deficiencies
of materials like steel pipe, pumps, compressors, and other imported equipment,
the electricity ministry told Argus Media
in early April.
But these official explanations have
not satisfied the regimes critics. Maduros political opponents deny that the
crisis is caused solely by the drought,
pointing instead to the administrations
mismanagement and imposition of price
1. Of oil and water. With more than a third of its total power supply in jeopardy from low
water levels and equipment troubles, Venezuela is grappling with a power crisis that has put
its strategic oil operations at risk. A particular worry is that water levels at the Guri Reservoir
will drop below the critical level of 240 meters above sea level, forcing the state-owned power
company to shut down critically needed turbines at its 10.2-GW Simon Bolivar complex on the
lower Caroni River. Courtesy: Wikimedia Commons/Enrique Rodriguez Bencomo
www.powermag.com
2. When it rains, it pours. The 14-GW Itaipu hydroelectric facility on the Paran River,
straddling the border between Brazil and Paraguay (and owned by both countries), provides
15% of all power consumed in Brazil and serves over 75% of the Paraguayan power market.
The El Nio weather phenomenon that has been blamed for devastating droughts in Venezuela
and Colombia has enabled the massive project to produce record amounts of electricity over the
first three months of the year. Courtesy: Cesar I. Martins/Flickr
www.powermag.com
2006
Power plant retirements have varied wildly over the past decade, both by fuel
and capacity, owing to a number of factors. Source: EIA, Preliminary Monthly
Electric Generator Inventory (based on Form EIA-860M as a supplement to Form
EIA-860) Copy and artwork by Sonal Patel, a POWER associate editor
4,770 MW
2007
$6.73
4,920 MW
1,973 MW
2008
$4.37
2009
2010
$6.97
$8.86
$3.94
2011
5,697 MW
2012
14,600 MW
$4
$2.75
2013
17,467 MW
$3.73
$2.62
2015
17,850 MW
2014
Compliance
deadline:
10,142 MW
All other
10
$4.37
Conventional hydroelectric
Other gases
Geothermal
Petroleum coke
Landfill gas
Petroleum liquids
Nuclear
www.powermag.com
Mercury and
Air Toxics
Standards
Henry Hub
natural gas
avg. spot
price/MMBtu
generated more than 25 million MWh, exceeding a previous record set in 2013. At
the end of March, the plant was producing
at full load owing to above-average rains
in Southern Brazil, and the power generated was more than the total generated by
plants in Rio Madeira, Santo Antnio, and
Jirau. It would be enough to serve the
entire Southern Region for 3.5 months and
the whole Brazil for about 20 days, Itaipu
Binacional gloated.
Still, the entity noted that it takes
careful operation to take advantage of
this volume of water. During the first
three months of the year, the flow through
the water inlet into the reservoir averaged
18,000 cubic meters per secondalmost
double the historical average, it said.
When there is a lot of overflow, the water
level below the reservoir rises, decreasing
the volume of falling water, and hence the
production capacity.
Its a game between higher flow rates
and possibly lower waterfalls, explained
Superintendent of Operations Celso Torino, noting that throughout the period
of abundance, Itaipus operators followed
guidelines dubbed Dancing with the Waters. It meant that workers had to op-
3. First of its kind. Chinas State Power Investment Corp. projects that the worlds first
Westinghouse Electric AP1000 reactor under construction at the Sanmen site in Zhejiang province could be operational by the end of this year. Unit 2 may come online in 2017. Courtesy:
Westinghouse
INNOVATING.
For more than a century, Fluor has executed some of the most
challenging projects in the power industry. Building on our legacy,
today we deliver integrated solutions and innovation for the next
generation of power.
www.fluor.com
2016 Fluor Corporation. All rights reserved. ADGV130416
www.powermag.com
11
4. Right off the bat. Norwegian multinational energy company Statoil has signed a
memorandum of understanding with the Scottish government, the Offshore Renewable Energy
Catapult, and Scottish EnterpriseScotlands economic development agencyto pilot a new
battery storage system for offshore wind energy at its Hywind Scotland wind farm. The floating
wind farm is under construction off the coast of Peterhead, in Aberdeenshire, Scotland. Courtesy: Statoil
www.powermag.com
us.megger.com/bgft
www.powermag.com
13
Wilmington-based team has made significant progress with process and engineering improvements, potentially improving
process efficiency and economics. However, the drive to commercialize the technology has seen other hurdles. In 2014,
both GLE and Silex Systems underwent
restructuring. Silex reduced its workforce
by 50%. Meanwhile, GLE hasnt yet made
a decision to build a commercial plant,
saying that will be dependent on market
conditions (Figure 5).
And finally, this April, Silex abruptly
announced that GE-Hitachi wanted out of
the venture, citing business priorities, the
slowed pace of SILEXs commercialization,
and market conditions. Silex said it has
started reviewing funding alternatives,
and believes that despite difficult market
conditions persisting, nuclear industry interest in the SILEX Technology continues.
One outcome is that Silex could increase
its direct participation in development
of GLEs program. Another could involve
minority partner Cameco, which has said
that it believes laser enrichment has potential and will support Silexs efforts.
As for medium-term prospects concerning
the Paducah commercial plant, Silex said
it remains positive. However, it added,
dismally, that there is no guarantee of
obtaining new investors for GLE given current market conditions.
POWER Digest
Ghana Starts Up Key Gas-Fired Power
Unit. Ghana has inaugurated the first of
two 180-MW units of a natural gasfired
power plant that it is banking on to boost
the West African countrys electric reliability. President John Dramani Mahama inaugurated the first unit of the Sonon-Asogli
project at Kpone, near the capital Accra,
on April 19, saying the project feeds into a
vision to provide the country with at least
5,000 MW of power capacity and make Ghana a power hub in West Africa. The eastern
part of the country has suffered debilitating power shortages of more than 750 MW
that have been blamed on shortfalls from
the West African Gas Pipeline project.
Mahama said on April 19 that Accra was
working to facilitate gas supplies from the
western region to the eastern region. The
360-MW Sonon-Asogli Power Plant is a private sectorled power plant operated by
Shenzhen Energy of China.
Ghana, which is committed to electrifying the entire country by 2020, generates about 64% of its installed 3,000 MW
from hydro, though sources suggest that
only about 2,700 MW of that total is de14
www.ansaldoenergia.com
Often, shift leaders and project managers are under intense pressure to accomplish myriad projects in relatively
short timeframes. Time scarcity can
result in hasty near-miss classification
decisions.
The approach is often based solely on
the severity or potential severity of an
incident. This method frequently fails
to evaluate the likelihood of a future
incident. For that reason, it is possible
that this approach might overlook incidents with a medium level of severity
but a high likelihood of occurrence.
1. Risk matrix for near-miss incident management. This matrix can be used to
index incidents by severity and likelihood rank (see Table 1). Source: GC Shah
Many experts suggest that near-miss incidents are opportunities in disguise. They
believe that close calls can be used to prevent future incidents. Most power plants
conduct some sort of root-cause investigation after near-miss incidents. Depending on the findings, managers may pursue
one of the following courses:
Severity
They typically rely on their personal experience to make that decision. This can be a
reasonably effective approach for categorization of near-miss incidents; however,
in some cases it can lead to inaccurate
assessments. The following points may be
worth considering relative to the consistent effectiveness of that approach:
Likelihood
www.powermag.com
Table 1. Decisions, decisions. This table offers guidance to help categorize the likelihood and consequences of an incident. Source: GC Shah
Likelihood
1
Relatively low or potentially low level of impactthese events are not likely to develop into Occupational Safety and Health Administration (OSHA) recordable incidents or exceed reportable quantities (RQs)
as defined by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Medium level or potential for medium level of impact, such as OSHA recordable incidents or higher, or
CERCLA RQ events
High or potential for high impact, such as large-scale environmental or safety incidents and events with
the potential to damage a company's reputation
Blue
Document the eventfurther resources for corrective action may not be warranted
Yellow
Red
Investigate and place top priority and urgency on implementing corrective action
Consequence
Suggested response
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17
2. Ultrasonic diagnostic tool. The Marksman II is one example of a tool for finding
leaks and more. The kit contains an ultrasonic receiver, ultrasonic emitter, hollow air probe,
contact probe, and noise-canceling headphones. Courtesy: Spectroline
3. Hearing is believing. The contact probe allows faulty bearings or gears to be identified. Courtesy: Spectroline
The Answers
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As a researcher at heart, I am committed
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me to dive into the details, my current
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WE KNOW NUCLEAR
Using science to improve the safety and reliability of nuclear power plants has been the catalyst for Christine Kings
success. Adept in both technical and business realms, Christine bridges the gap between science and industry. Her
background includes more than two decades of research to advance the scientific understanding of nuclear issues,
particularly in the areas of materials, fuels, chemistry and nuclear waste. With expertise in both asset management and
research, Christine is leading Structural Integritys expanded nuclear team to provide integrated, world-class solutions to
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No Sweeping Mandate
Together, these cases make clear that whatever states may think
about the operation of the interstate power markets, they lack
any authority to change things to their liking. What was notable
about the Maryland opinion, however, was what the court did not
do. Justice Ginsberg took pains to stress that the holding was
limited and that the court did not intend to foreclose per se all
state programs to incentivize generation.
Nothing in this opinion should be read to foreclose Maryland and other States from encouraging production of new or
clean generation through measures untethered to a generators
wholesale market participation, the court said. So long as a
State does not condition payment of funds on capacity clearing
the auction, the States program would not suffer from the fatal
defect that renders Marylands program unacceptable.
Why does this matter? Some court observers were nervously
watching this case because of its potential to affect state renewable portfolio standards (RPSs). RPS opponents have argued unsuccessfully for years that these programs are unconstitutional in
that they constitute state programs that interfere with interstate
power markets and economies in other states (see The Lurking
Threat to State RPSs in the August 2013 issue). For example,
an RPS bias against coal in one state can render a coal plant in
another state uneconomic, leading to its shutdown even if the
other state would prefer it to remain operating (something that,
indeed, has happened).
That question was not before the court, and thus it would not
have decided it here. But when a decision implicates other issues
that the Supreme Court knows are percolating through the lower
courts, it will sometimes take the opportunity to telegraph its
thinking. While the constitutional questions remain for another
day (the 10th Circuit last year turned aside the challenge I wrote
about in 2013, and the Supreme Court declined to hear the case),
Justice Ginsbergs disclaimer strongly suggests the court is not
waiting for an opportunity to strike down all RPSs.
Thomas W. Overton, JD is a POWER associate editor.
www.powermag.com
Material Handling
Pumps
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Technology
WORKFORCE
Power generators have always had to make some changes as each new generation
enters the sector, but todays new workers are bringing with them attitudes and
skills that challenge traditional plant management, for good and ill. Heres what
some companies and plants are doing to make the best use of younger workers
while getting them to work efficiently alongside older generations.
Thomas W. Overton
22
1. An aging workforce. The age distribution of workers in the electric power sector
skews older than for comparable industries such as mining and construction. In this chart, the
electric power and mining sectors, and U.S. total, are plotted on the left axis, while construction
and manufacturing are plotted on the right axis. Numbers are in thousands, except for U.S.
total, which is in hundreds of thousands. Source: U.S. Bureau of Labor Statistics
Electric Power Mining, quarrying, and oil and gas extraction U.S. total Construction Manufacturing
350
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
300
Number of workers
250
200
150
100
50
0
16 to 19
20 to 24
www.powermag.com
25 to 34
35 to 44
45 to 54
Age of workers
55 to 64
65-plus
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WORKFORCE
2. Wanted: Top-notch
people.
WORKFORCE
3. Cross-functional. While younger
workers may be attracted to power sector positions in renewable energy because they are
perceived as more environmentally friendly,
they should be aware that many skills are
transferrable across the industry regardless
of the generation source, making transitions
from one field to another fairly straightforward. Courtesy: Duke Energy
power plants is advancing rapidly, and workers looking for high-tech careers should be
made aware both of the many opportunities
and that their interests and skills are badly
needed (Figure 3).
Utilities recruitment and retention are
going to be driven by the extent to which
work responsibilities can transition from
technician to information worker to better
align with expectations of todays workers
across many generations, Ashenbrenner
said. Younger workers especially have come
to expect always-connected devices that are
touch and voice accessible.
Ashenbrenner recommended downplaying
traditional job marketing and playing up the
importance of power generation to modern
technologies.
Rethink how you describe and market
the job: The job isnt power plant. It is
maintaining conditioned power networks.
Virtually every machine and device in every
industry uses energythats powerful to a
younger worker who wants to make a difference. But dont just make the description
moralizing. Connect it to a career. Present the
impact of their job on a larger scale.
Fran Sullivan, senior vice president of operations for NRG, explained how the giant
generator makes an effort to cultivate an image distinct from how younger workers may
view traditional utilities.
We constantly look for ways to improve
how we generate electricity, he said. Customers see NRG as innovative, offering technologies for the home and for businesses
that are being adapted to improve efficiency
and reduce environmental impact. The lesser-known fact is that we employ that same
methodology to our fleet generation. When
you see that the company is tackling that impact issue on both ends of the spectrum, it
says a lot about the commitment to making
change.
With more and more private companies
particularly high-profile tech firms like
Google and Amazongetting into self-generation, generators can make clear to younger
workers that generating electricity doesnt
mean a lifetime of being tethered to a turbine
or boiler.
Workers dont want to be locked into
one job or one field, Ashenbrenner said.
A programmer working at Twitter knows
that her skills translate to thousands of other
employers and that having Twitter on her
resume adds to her value. Power plants can
offer the same appeal: Transferrable experience. A resume at a power plant, especially
if it includes some information worker tasks,
prepares for a career with fossil fuels and renewables, with large-scale utilities and local
power subsystems.
www.powermag.com
WORKFORCE
4. Mobile tech. Both older and younger workers can benefit from a transition to mobile
technology for plant functions. Dont assume older workers will resist the change or will be
more challenged by it than younger ones. Courtesy: XPlore Technologies
WORKFORCE
5. The digital future. Younger workers
are most familiar with online and interactive
education, but all workers can benefit from
advanced training technology with the right
approach. Courtesy: Honeywell
Safety Matters
tion, he said. In addition, enabling workers
to remotely monitor the operations of an isolated location, for example, can help attract
and retain younger workers who want to live
in a metropolitan area versus near the plant.
All that being said, there are older workers
who may have trouble with new technologies, and managers should avoid making assumptions about their experiences.
There are workers who do not have PCs
at home, or if they do, someone else maintains it for them, usually one of their children, Ashenbrenner said. So introducing
mobile technology into fields like power
plants means that some of the employees are
first-time computer users.
Training Options
Roffel stressed that different generations may
need different training approaches because
their educational experiences before arriving
on the job can be very different (Figure 5).
Todays generation of young people entering the industry have been conditioned by
their experiences with gaming, the Internet
and mobile devices, such as smartphones and
tablets, to expect a different type of learning
experience, he noted. They expect interactive and engaging activities, to capture their
attention. They need immediate feedback as
a means to motivate, and they are well versed
in accepting training on demand.
This isnt necessarily true with older generations, however.
We know from research studies that an
effective training program for both older
and next generation workers uses a variety
of techniques to improve the effectiveness
of training and in particular the higher order
skills needed by such workers. For example,
the ability to evaluate adequacy of information and procedures upon which conclusions
and decisions are based, is key for process
hand or another body part in a hazardous position, it notes. Hazard assessments should
take into account not only the traditional
hazards, but also ergonomic and usability issues for a broad range of workers. Engineers
performing assessments, building functional
specifications and designing machinery need
to assess all potential operator and maintenance technician movements as part of the
process.
WORKFORCE
Human workers are imperfect, which is why theres no magic bullet that will give
you a safe workplace. But new research on human behavior and how that translates
into safety attitudes is helping some in the power industry get beyond the traditional platitudes.
Thomas W. Overton
WORKFORCE
1. Leading indicators. Day & Zimmermans BOLT program has helped the firm substantially drive down injuries by giving managers a clear picture of the company safety culture before
accidents happen. Supervisors are trained to recognize and record safe, at-risk, and unsafe
behaviors through direct interaction with workers in the field. Courtesy: Day & Zimmerman
WORKFORCE
instructions that are under-specified, underresourced, under-trained, under-modeled, under-coached, and under-reinforced, combined
with inherently flawed defenses, Havard
noted, and the workers get it right 99% of the
time. They are masters of dynamic adaptation,
and that is exactly what we desperately need
to be successful in the future, but we destroy
that potential when we embrace [top-down]
views of safety and engagement. Those who
do the work know the problems and have the
best solutions.
That can be a hard pill to swallow for
managers who believe safety needs to be
tightly managed.
How to get beyond that attitude? Mazulewicz suggests paying attention to areas where
30
www.powermag.com
This improved field documentation trickles down to safety for fabricators and installers of equipment and piping. Piping
can be shop-fabricated, thus reducing the
amount of field time and the hazards of
cutting and preparing pipe in the field. The
use of laser scanning has decreased field
time required by engineers and designers
in the range of 50% to 90%, and saved on
upfront documentation costs. This has resulted in a safer working environment for
installers and also provided a greater level
of accuracy for shop fabrication and field
installation.
www.asiansbcusers.com
OCTOBER 3
OCTOBER 46
WORKSHOPS
CONFERENCE
28034
WORKFORCE
Courtesy: EPRI
New worker training has traditionally meant classroom instruction and wading
through a big pile of printed materials. But videos can offer deeper and more rapid understanding of critical issues, especially for younger generations. The Electric
Power Research Institute has developed a series of videos to help power plants train
new workers more effectively.
Dwayne Coffey
WORKFORCE
1. Hands on. Lance Duguay of IMIGpro.com works with EPRI actor Nathan Rouse on the
teleprompter script for one of the Stop, Think, Act, and Review (STAR) videos. Courtesy: EPRI
Video Series
The topics for the video series were chosen
based on the interests of EPRI member utilities. The series currently includes six videos
portraying human performance tools and
four videos on proper execution of lockout/
tagout (LOTO). Utilities are using the videos
in different ways. Some are incorporating the
videos into their plant training courses, while
others are posting the videos online to be
viewed at their employees convenience. Following are brief discussions of the 10 videos
in the series.
Questioning Attitude. This video defines questioning attitude as being attentive to all conditions. It notes how employees
involved in a familiar work routine may relax
mentally and ignore or rationalize abnormalities. To have a questioning attitude means to
review a situation to see if things are in the
right place or as they should be, every time.
In one scene, an operator notices a trend in
data and recognizes that a differential pressure is higher than expected. Rather than
simply recording the data, he brings it to the
attention of the shift supervisor so that further investigation can be conducted. In an33
WORKFORCE
4. In focus. A multi-camera setup was used
to capture an employee checking settings on
equipment. Ted Villa of IMIGpro.com is shown
shooting camera B for the STAR series at the
W.S. Lee Steam plant. Courtesy: EPRI
tion tagging or LOTO situations. Each employee uses the STAR tool. In the video scene,
two workers are given a work order to hang a
tag on an isolation valve. The first worker locates the valve, confirms the ID number, and
turns the valve. At a later time, and alone, the
second worker confirms the ID number and
verifies that the valve was turned.
Communication Techniques. Two tools
to aid in clear communication are three-way
communication and the phonetic alphabet.
Three-way communication, which is commonly used for giving and receiving verbal
instructions, involves:
1. The sender stating an instruction to a second worker.
2. Second worker repeating the instruction
back in his or her own words to the sender.
3. The sender verbally acknowledging that
the second worker correctly understands
the instruction, typically by responding,
Thats correct.
The phonetic alphabet assigns code words
to the alphabet; the NATO phonetic alphabet
is the most widely used version in the fossil
power industry. A is alpha, B is bravo, etc.
These tools are used when verbally communicating all alpha or alpha-numeric designations and is especially important when a
single letter is the only difference in the identities of two pieces of equipment. In the video
scene, a supervisor in a control room uses a
walkie-talkie to instruct a technician in the
field to swap over the alpha pump. In a very
noisy plant location, the technician mishears
the pump name as the bravo pump. When
he repeats this, the supervisor corrects him,
thus avoiding a mistaken action. The scene
demonstrates how what might appear to be
a trivial and unnecessary routine is actually
vital.
Pre-Job Brief. A pre-job brief is a meeting of workers and a supervisor before a job
to discuss the tasks involved, hazards, and
related safety precautions. It ensures everyone understands the scope of the work, the
procedural steps, his or her responsibilities, and the hazards and controls. A pre-job
brief is used prior to a task that is not part
of a normal routine or prior to a task that, if
performed incorrectly, would have significant consequences. In the video, a supervisor
greets five co-workers. He tells them about
a new work order thats been received. After
giving each member of the group a copy of a
checklist, the supervisor reviews the tasks to
be performed and describes the preparation
thats needed.
Clearance and Tagging ProcessExecution (Overview). Clearance and tagging
Future Videos
EPRI plans to continue expanding the video
library. In 2016, a new video series on What
Does Good Shift Turnover Look Like? will
be added to the video library.
your needs.
Choose your area(s) of interest and have the POWER site customized to
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Save your favorite POWER articles for reference.
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WORKFORCE
With dozens of U.S. coal-fired units closing, workers who arent ready for retirement
will be seeking new employment. Heres a rundown of programs and resources designed to assist them.
Lee Buchsbaum
36
1. 20-year view. A 2014 Government Accountability Office report included projected coalfired unit retirements through 2025. Energy Information Administration data show that 2015 did
indeed account for the highest number: Around 14.3 GW of coal capacity retired. (Axis labeling error, in original, is unresolvable without access to data source.) Source: GAO analysis of SNL data
Actual Planned
14
12
8
6
4
2
6
200
7
200
8
200
9
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
202
0
202
1
202
2
202
3
202
4
202
5
200
GW
10
200
www.powermag.com
WORKFORCE
How Generating Companies Are
Assisting Affected Workers
Much of the existing coal generation capacity in the U.S. was built from the 1950s to
the 1990s during a time when electricity sales
were growing much faster than population
and gross domestic product. The coal units
that were retired in 2015 were mainly built
between 1950 and 1970, and the average age
of those units was 54 years. According to the
EIAs research, the rest of the coal fleet that
continues to operate is somewhat younger,
with an average age of 38 years.
The units closed in 2015 also tended to be
smaller than the rest of the coal fleet. The net
summer capacity of the average retired coal
unit was 133 MW, compared with 278 MW
for the units still operating. Often because
they were older, some of these plants required
larger workforces to operate and maintain per
megawatt of capacity.
Just like the facilities they work in, the
average age of workers at many coal-fired
power plants nationwide has steadily
crept upward as many anticipated eventual
retirement. There are several important
contextual factors to remember when considering job losses in the coal-fired generation sector:
2. James De Young Power Plant retires. While there will be some workforce
shrinking related to coal and ash pond handling, most employees from this Michigan plant will
transition to the gas-fired Holland Energy Park. Courtesy: Holland Board of Public Works
3. Gone but not forgotten. American Electric Powers (AEPs) Kanawha River Plant,
located on the Kanawha River at Glasgow, W.Va., was retired in mid-2015. Courtesy: AEP
All things considered, with careful planning, in many instances staff numbers have
painlessly dropped at a given location
through natural attrition, without layoffs.
An example of a successful transition occurred in Holland, Michigan, recently. Just
before tax day this year, the 76-year-old
James De Young Power Plant on the shore
of Lake Macatawa (Figure 2) fired up two
natural gaspowered units as the plant finally converted away from coal. Owned by
the Holland Board of Public Works (BPW),
a mid-April date to stop burning coal had
long been in the BPWs plan, said Dave
Koster, general manager of the BPW. The
Holland Sentinel newspaper reported that
there were about 35 workers at the plant
who will be moving in shifts to the new
Holland Energy Park as they gain training
for their careers in natural gas and other
energy systems.
Koster told the paper that no layoffs are
needed. Its been a key power resource that
helped make our electric system reliable and
cost effective for the development of businesses in our area and Im glad well be
able to transition our staff over to the new
plant.
Likewise, for generation behemoths
such as the heavily coal-dependent American Electric Power (AEP), careful planning
helped save many jobs (Figure 3). By early 2016, AEP will retire more than 6,000
MW of coal-fired generating capacity at
11 power plants in seven states. Typical of
these older plants slated for retirement is
AEPs Philip Sporn Plant near New Haven,
West Virginia, though the adjacent Mountaineer 9 plant is not.
www.powermag.com
In total, AEP had approximately 570 positions that were affected by upcoming generating unit retirements. As early as 2012,
when the company identified the 23 coal-fueled generating units at nine sites that would
close due to MATS and other environmental
regulations, We specifically held positions
that came open (due to retirements or people leaving) at other power plants not being
closed to help reduce the job impacts from
the generating unit closures, said Melissa
McHenry, director of external communications at AEP in an email to POWER. That
meant new positions at other power plants
or other AEP departments for nearly half of
37
WORKFORCE
the employees affected by the retirements.
Many of the affected employees also were
retirement-eligible, so they decided to retire
instead of taking another position that might
have required relocation or longer travel
time.
Most of the job changes within AEP were
for similar types of jobs at another power
plant. There were a few employees who decided to train for line mechanic jobs in our
transmission and distribution organizations
or for other jobs at AEP in order to stay with
the company, said McHenry. Since most of
the affected employees were able to transfer within AEP or were retirement eligible,
the company did not use any government
retraining programs to help with the transition. Many of the new positions were at
other remaining coal plants, but several employees did go to some of AEPs natural gas
generating units. Though certainly there are
still jobs at the coal units that we refueled
with natural gas, it takes a much smaller
number of employees to operate a natural
gas plant25 or so for a good-size natural
gas plant versus well over 100, sometimes
nearly 200, for a good-size coal unit, said
McHenry.
Though AEP prepared employees for transitions in anticipation of MATS going into
effect, the Obama administrations Clean
Power Plan (CPP), under judicial review,
would have even larger effects and displace
more workers.
WORKFORCE
that I knew was scheduled to close, I would
get in touch with the appropriate ARC state
people and see if there were any on-going
projects that could be helpful. Thats where
the knowledge base is for the ARC. Their
job is to make sure that our funds are used
to improve the economic health of the communities we serve from the ground up. They
might also be able to link you up with another
partner. There are dozens of smaller-sized
projects that could be exactly what is needed
to help some workers transition to another
career path. Bottom line, if youre a power
plant worker and youre being laid off, if we
can help you, we will, said Wasserman.
To reach ARC state program managers,
visit www.arc.gov/about/StateProgramManagers.asp. The group also produced a detailed March 2016 report on the state of the
Appalachian coal industry that can be found
at http://1.usa.gov/1QBjyBe.
Recent Grants
Below are some examples of recently awarded grants from ARC, the DOLs ETA, the
Department of Commerces EDA, and other
entities.
$75,000 ARC grant to Appalshop Inc.,
in Whitesburg, Ky. This grant is for Mines
Chicago, IL
www.electricpowerexpo.com
Where Generating
Companies Meet!
www.powermag.com
39
REGULATORY COMPLIANCE
little over a year ago, the Environmental Protection Agency (EPA) published a final rule to regulate the disposal of coal combustion residuals (CCR) as
solid waste under subtitle D of the Resource
Conservation and Recovery Act (RCRA).
The rule, which establishes technical requirements for CCR landfills and surface impoundments, went into effect on October 19,
2015. Even before the final rule was signed,
power generators spent a great deal of time
trying to understand their options and make
decisions about how best to comply with the
rules requirements.
But how do companies know if they have
the right plans in place? POWER interviewed
a couple of experts and reviewed the actions
taken by several large utilities to see if any
environmental best practices have emerged.
The insights we gathered might help you
determine if your facility is taking the most
effective actions to prevent unnecessary and
costly CCR releases from occurring. They
could also keep you out of the courtroom.
REGULATORY COMPLIANCE
1. In-place closure/consolidation. There are definite cost advantages to closing coal
ash impoundments in place, but there may also be some added long-term risk. This diagram
shows the sequence of actions needed when choosing the in-place closure option. Source: TRC
Companies Inc.
Dispositional delta at
discharge location
Standing water
Ash
To
wastewater
treatment
or NPDES
discharge
Current conditions
Perimeter ditch for
dewatering
Wellpoints
Ash
(to be removed
Dewatering
Affected soil to
be removed
Erosion layer (topsoil)
ade
in. gr
3% m
Ash
In-place closure/consolidation
Take control.
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41
REGULATORY COMPLIANCE
42
www.powermag.com
REGULATORY COMPLIANCE
4. Ash excavation. Removing coal ash from unlined storage sites and disposing of it in
fully lined landfills is costly, but less risky in the long term, for generators. Courtesy: TRC Companies Inc.
Wetlands can be designed in a variety of system types and configurations to meet specific
wastewater needs. Every site is unique, and the
design of a constructed wetland system is generally site-specific. Courtesy: Matt Huddleston
5. A natural filter. Constructed wetlands are treatment systems that use natural processes involving wetland vegetation, soils, and their associated microbial assemblages to improve
water quality. Courtesy: Matt Huddleston
schedule if sufficient time and dewatering infrastructure arent included in the plan.
While future disposal in a lined onsite
landfill can be a cost-effective solution (see
sidebar), permitting a new facility can be
problematic if a plant is in close proximity
to large bodies of surface water or has insufficient depth to groundwater.
An Environmental Lawyers
Perspective
According to Frank Holleman, senior attorney for the Southern Environmental Law
Center (SELC)a nonprofit that uses the
law to, in its words, stop environmental
abusesthe EPAs rule is not the final
word, but an essential floor of protection.
Holleman told POWER that a utility can potentially comply with the CCR rule, while
still violating the federal Clean Water Act,
the federal RCRA statute, state antipollution laws, and other legal protections.
The only way for a utility to protect itself,
its executives, board members, employees,
and shareholders from civil and criminal liability, financial risk, and serious reputational
harm is to move its coal ash from wet unlined
waterfront storage to dry, lined storage away
from waterways and separated from groundwater, Holleman said.
www.powermag.com
Holleman pointed to a couple of South Carolina companies that he said are doing things
right. First he noted that Santee Cooper is
removing all coal ash from its unlined waterfront coal ash storage sites (Figure 4). He said
the company has permitted and constructed a
Class 3 (lined) industrial landfill at its Cross
facility and is permitting another Class 3 landfill at its Winyah Generating Station. Santee
Cooper has partnered with The SEFA Group
Inc. for the construction of a $40 million plant
in Georgetown County to reprocess ponded
ash into concrete, and it has contracts with
others for concrete recycling.
South Carolina Electric and Gas Co. is
taking similar steps. It has a lined Class 3
industrial landfill at its Wateree Station near
Columbia and is removing all the ash from
an unlined pit near the Wateree River. Since
it began removal about four years ago, arsenic groundwater contamination has declined
by about 90%. According to Holleman, the
removal is also eliminating a threat to the
Congaree National Park, which is three miles
downstream from the site.
At the other end of the spectrum, Holleman suggested that the Tennessee Valley
Authority (TVA) has not learned from the
2008 coal ash spill at its Kingston facility
arguably the worst coal ash disaster in U.S.
history. SELC filed litigation on behalf of
conservation groups in 2015 alleging that
the TVA is violating antipollution laws in
the way it stores coal ash at its Gallatin facility near Nashville. The TVA recently responded with a proposal, but Holleman said
the plan leaves the ash where it is, which
SELC claims includes areas of karst geology inundated with sinkholes.
Scott Brooks, TVA public relations specialist, told POWER that the TVA has committed to spending $1 billion to $2 billion to
43
REGULATORY COMPLIANCE
convert all of its CCR storage from wet to dry
systems. It has also spent another $1 billion
to restore the area around the Kingston spill
to conditions that it claims are as good or
better than before the spill.
We appreciate that SELC has its own
agenda that it is seeking to advance here,
but TVA has a public mission that guides its
activities. Its responsibilities have been set
by Congress and are much broader than the
limited focus that SELC applies to itself,
Brooks said.
DISCOVER
NEW
PRODUCTS
Constructed Wetlands
Much of the focus in CCR management
has centered on the handling of the solids.
However, Nilsson said long-term management must also include handling and treating
leachate from disposal cells and discharges
from low-volume waste ponds.
The quality of the effluent is expected to be
increasingly scrutinized even while current discharge limits are being met, Nilsson said.
The EPAs Effluent Limitations Guidelines, which became effective on January 4,
2016, tighten current discharge limits and
force more rigorous treatment for some waste
streams. Long-term treatment can be energyintensive and costly over the life of a facility.
Nilsson suggested that passive treatment, using a constructed wetlands system (Figures 5
and 6), could provide a highly effective alternative in certain situations.
Although a constructed wetlands treatment
system is a relatively new technology, its effectiveness in treating CCR contact water has
been demonstrated for at least 15 years. It offers the following benefits:
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44
www.powermag.com
RELIABILITY
Development of a Risk-Based
Approach
When MRO began enforcing mandatory reliability standards in 2007, every instance of
noncompliance, no matter what the risk was
to reliable operations of the BPS, required a
formal enforcement proceeding with a filing
to FERC in the U.S. We literally made a federal case out of everything.
In addition, each year a subset of the more
than 500 requirements in the reliability standards was identified to be actively monitored
during the year across North America. This
meant that all entities performing similar
functions, regardless of size or uniqueness,
would be monitored on the same set of requirements each year. A 5,000-MW generator operator (GOP) control center would be
monitored for the same requirements as one
controlling 100 MW with regard to control
system infrastructure and security. A large
generator owner (GO) with a fleet of baseload generation facilities and ownership of
generator lead lines out to the transmission
network would be monitored for the same
requirements as a wind farm with no power
delivery assets.
1. Layers of risks. Regional reliability organizations assess risk for individual entitles based
on a combination of continental, regional, and entity-specific factors. Courtesy: Midwest Reliability Organization (MRO)
Continent-wide risks
Regional risks
Entity risks
www.powermag.com
45
RELIABILITY
2. Changing resources = changing risks. The types of power system resources on
the grid, where they are located, their size, and other factors all affect individual risk profiles and
how those entities are handled by reliability organizations. Courtesy: MRO
A Theoretical Example
Lets look at an example, starting with risks
and developing a customized oversight
plan for a fictitious entity, Techie Generation Co. (TGC).
TGC is a 2,000-MW GO and GOP (it
46
RELIABILITY
MRO regional risk of facility ratings, a
review of TGCs facility ratings would be
part of its oversight plan.
Customized Oversight
The development of customized oversight
plans is performed using analysis of continent-wide risks, regional risks, and entityspecific risks, with a relationship between
those risks and the standards selected for
oversight. The next step in the evolution of
risk-based compliance monitoring and enforcement is consideration of the timing and
frequency of oversight and selection of oversight tools based on risk.
That 5,000-MW GOP might need a visit
every year (for a smaller audit focused in a
certain area), while the 100-MW GOP might
be able to have its oversight completely handled through self-certifications. It all depends
on risk and performance.
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units? Platts World Electric Power Plants Database
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47
NUCLEAR POWER
behind the trend toward larger and larger reactor designsis flawed. The truth is, as you
get bigger reactors, theyre more complex,
they take longer to build, and the benefits of
scaling are defeated.
When you have a complex sitemost
of the cost for nuclear reactors is site
workit doesnt work, said Roulstone.
The scaling does apply for factory-designed products, but theres no scaling effect for site space work.
Smaller = Faster
Time is not on your side when youre building a nuclear power plant. The longer a plant
takes to build, the more it costs, and the longer owners have to pay interest on the money
before the facility starts producing power. In
the case of large nuclear construction projects, a history of drawn-out schedules and
incessant delays are two of the biggest factors that keep ground from being broken on
new plants.
Clients really like short schedules,
Roulstone said. They like a short construction period because they get to revenue
more quickly. If you can get to revenue in
three years, thats great. You dont want 10
and 12 years.
And thats where the small modular reactor (SMR) comes into play. There are several
designs in various states of development (see
Small Modular Reactors Speaking in Foreign Tongues in the January 2015 issue and
online at www.powermag.com), but the one
that seems to be making the most progress
in the U.S. is NuScale Powers Integral Pressurized Water Reactor (IPWR, see NuScale
Puts Single-Minded Focus on Small Modular
Reactor in the October 2013 issue and at
www.powermag.com).
NuScale, majority-owned by Fluor Corp.,
estimates that a plant designed with 12 of its
modules (Figure 1)a 600-MW facility
could be constructed from mobilization to
www.powermag.com
NUCLEAR POWER
would plan to do with an SMRthe economics are more favorable when you can
operate at full powerit offers flexibility.
Who can predict what the grid is going to look like 60 years from today, Stout
asked. If you have that capability to load
follow, that may be very valuable.
The Clinch River location includes 1,200
acres on a peninsula (Figure 2) a few miles
from the Oak Ridge National Laboratory.
The site is owned and controlled by the
TVA. The Department of Energy (DOE) is its
immediate neighbor and has expressed interest in being a power customer.
The location offers several benefits, including the existence of basic infrastructure, such as easy access to 500 kV and 161
kV transmission lines, good roads, storm
water retention ponds, and a community in
Oak Ridge that has been very supportive of
nuclear energy and offers an abundant and
skilled workforce to draw from.
The TVA is using a Plant Parameter Envelope approach to complete its ESP application. What that means is that it has
selected four SMR design options and set
bounding parameters that encompass the
most restrictive aspects of all of the designs. The designs included in its evaluation are the BWXT mPower SMR (developed
by BWX Technologies Inc. and Bechtel Power Corp.), Holtec Internationals SMR-160,
NuScale Powers Integral Pressurized Water
Reactor, and Westinghouses SMR.
Stout said the TVA is working with the
DOE directly through an interagency agreement, and the DOE is reimbursing up to
www.powermag.com
1000 ft
36-year history.
So what led a relatively small, wholesale
power provider that supplies a group of municipalities to toss its hat into the nuclear ring
while other supposedly savvy companies
have been content to sit on the sidelines? Is
this the result of naivet or inspired vision?
Should other companies (see sidebar) be considering the SMR option?
Eric Larsen, UAMPS board member from
Fillmore City, Utah, provided an overview
of the project review process in a UAMPSproduced video. He said, New projects are
brought to the UAMPS board. Presentations
are made. The staff does investigations that
help us to understand what the project is all
about. A complete rundown of every aspect
of the project is brought out. If it looks like
49
NUCLEAR POWER
3. NuScale control room simulator. With a 12-module facility, the NuScale
5. A petite footprint. The 600-MW NuScale design only requires 34.5 acres to accommodate the fenced-in protected area. Courtesy: NuScale Power
its going to be a good project, we will invest more energy, more time, get more staff
involvement. Sometimes the board gets involved in helping us to make decisions about
new projects, whether or not they will work
well for some or even all the members. As
new projects are looked at, not all members
will become involved because of the diversity of the board.
According to UAMPSs 2015 Annual Report, 32 of its 45 members had signed onto
the Carbon Free Power Project. However, its
two largest membersLower Valley Energy
(with roughly 27,500 customers and about
210 MW of peak demand) and City of St.
George (with roughly 28,700 customers and
about 188 MW of peak demand)had not
elected to participate. Regardless of that
fact, UAMPS believes its coal plants may
have to be replaced with carbon-free generation within the next 10 years, and it sees
SMR technology as the safe, stable, longterm solution.
For its part in the venture, Energy Northwest holds first right of offer to operate the
project (Figure 3). The company operates the
1,190-MW Columbia nuclear plant located
north of Richland, Wash., and welcomes the
opportunity to operate the first SMR plant in
the U.S.
down and self-cools indefinitely with no operator action, no electrical power, and no additional water. The plants containment vessel
is submerged in an ultimate heat sink for core
cooling in a below-grade reactor pool structure, housed in a Seismic Category 1 reactor
building (Figure 4).
Safety was a huge selling point for us,
Doug Hunter, CEO of UAMPS, said during
the Atlanta event.
With no reactor coolant pumps (the nuclear
steam supply system is designed to operate
at full power using natural circulation due to
density differences for core coolant flow), a
small nuclear fuel inventory (roughly 5% of
the fuel contained in a 1,000-MW reactor),
and integrated reactor, steam generators, and
pressurizer (eliminating large primary piping), there is less to go wrong than in a large
conventional PWR. NuScales design only requires a handful of safety valves to be opened
in the event of an accident to actuate the emergency core cooling system. The safety valves
are designed to fail in their safe condition, that
is, following a loss power, they mechanically
realign to their required emergency position.
The other thing is theyre scalable, said
Hunter. Were a municipality. UAMPS as a
whole, were about 1,500 MW of load, but
I have some members that are a megawatt
of load.
Hunter said that having a dozen 50-MW
reactors, deployable as needed, would allow UAMPS to dice up the output into small
pieces and sell it to a variety of very small
utilities. He sees that as a big advantage.
He also said that funding an SMR project
is not as difficult as one might think. In
fact, according to Hunter, it is much easier
than building a new coal-fired power plant.
UAMPS has signed an agreement with Bank
of America Merrill Lynch and is also workwww.powermag.com
Looking Forward
In February, UAMPS and the Department of
Energy (DOE) entered into a use agreement
that allows UAMPS to explore certain locations for plant development on the Idaho National Laboratory (INL) site near Idaho Falls.
UAMPSs compliance strategy for meeting
National Environmental Policy Act requirements is to have the DOE conditionally agree
to future actions pending the Nuclear Regulatory Commission (NRC) completing its
permitting process.
There are essentially three areas being
considered on the INL site, but the ultimate
spot (Figure 5) wont be designated until after
the NRC completes the combined license application (COLA) approval process. UAMPS
has a cost-sharing cooperative agreement
with the DOE through NuScale to help pay
for the COLA development.
A look at UAMPSs preliminary schedule
shows a lot of work needs to be done before
the first SMR begins commercial operation.
Among the 2016 milestones are selecting
the site, finalizing the plant design, and submitting a design certification application to
the NRC.
UAMPS expects to submit its COLA in
2018. The following year, site mobilization
and preparation are scheduled to begin, and
UAMPS expects to place an order for the
modules. Assuming the NRC issues the COL
on schedule in 2021, the first safety concrete
pour is slated to take place that year. Ultimately, if all goes as planned, the first module could enter commercial operation by the
middle of 2024.
ELECTRIC POWER
51
ELECTRIC POWER
2. Digitizing power. Scott Bolick, head of software strategy and product management
for GE Power Digital, discusses the companys vision for the future at ELECTRIC POWER 2016.
Source: POWER
3. GEs digital web. Digitizing power generation assets allows a careful balance of plant
operational characteristics, enabling plant managers to get much closer to design potential.
Source: POWER/Tom Overton
Better Positioning
The power sector needs the next generation of workers, who have grown up
surrounded by digital technology, but attracting them means changing the way
things are done. This incoming workforce
is a different audience from previous generations, he said.
That audience is going to want the experience of their IT systems in the plant to mirwww.powermag.com
ELECTRIC POWER
he annual panel discussion by high-level leaders from diverse power companies is a cornerstone of the ELECTRIC
POWER Conference & Exhibition, and it has
been consistently emblematic of the state of
the U.S. power sector. It was no different this
year, at the 18th annual event in New Orleans, La.
Titled Industry MakeoverThe New Face
of the Power Industry, the Executive Roundtable discussion on April 19 was moderated by
Richard McMahon, vice president of energy
supply and finance for the Edison Electric Institute (EEI). Panelists were Phillip May, president and CEO of Entergy Louisiana; John
Trawick, senior vice president of commercial
operations and planning for Southern Co.; and
Clarence Hopf Jr., senior vice president and
chief commercial officer for the newly formed
Talen Energy (Figure 1).
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53
ELECTRIC POWER
efforts, said Trawick, pointing out that the
company also has the added benefit of having a good diverse fleet of assets and the
ability to switch fuels in the real term based
on what gas and coal prices tell us.
But for Talen Energy, the dismal demand
outlook is more insidious, Hopf suggested.
The firm, one of the largest independent
power producers in the U.S., was established
only a year ago, in June 2015, as Pennsylvania-headquartered PPL Corp.s competitive
power generation business spun off and com-
bined with the competitive generation business owned by private equity firm Riverstone
Holdings LLC.
Talens president and CEO, Paul Farr, has
described the firm as a pure-play competitive energy company, noting that most of
its highly diverse merchant fleet of about
16.8 GW is primarily located in two of the
largest, most transparent, and most liquid
competitive markets in the U.S.PJM and
the Electric Reliability Council of Texas
(ERCOT). In Texas, a market that ERCOT
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not necessarily for Talen. I think that to get
that on the big scale, to do it economically, to
do that competitively, were still many years
down the road, he said.
well-defined. Generally, when we are building a CCGT, were setting out how long it
will take and how much it will cost, and
generally were building it in a shorter timeframe and under budget.
To offset price volatility, like several other
U.S. utilities (Trawick noted that Southern is
in the process of merging with AGL Resources), Entergy is looking at acquiring gas in the
ground, and Louisiana regulators have opened
a docket to investigate that, May revealed. He
joked: Ive heard it said, and I believe it, that
the world is round because its full of gas.
ELECTRIC POWER
1. Panelists for the 2016 ELECTRIC POWER Environmental Mega Session. At the podium: Chuck Barlow, vice president of environmental strategy and policy for
Entergy Corp. Seated, from left to right: John King, a partner at law firm Breazeale, Sachse &
Wilson; moderator Tony Licata of Licata Energy & Environmental Consultants; Block Andrews,
associate environmental engineer for Burns & McDonnell; J.T. Smith, director of policy studies,
Midcontinent Independent System Operator; and Maria Race, director of NRG Energys federal
environmental programs. Source: POWER
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ELECTRIC POWER
tion of standards of performance (Section
302 [a]) specifies a particular clause of the
CAA (Section 112[b]), which the House version does not. Industry argues that the EPA
is prohibited by this so-called Section 112
exclusion, because the exclusionwhich is
not ambiguous, as the EPA has claimedis
to avoid duplicative regulation under Section
111 and Section 112. The EPA says it interpreted the House and Senate amendments the
same way, he said.
A Legal Chokehold
All the arguments are centered around a few
sentences, in Section 111 of the Clean Air
Act (CAA), King said. (For more on the use
of the CAA, see this issues Commentary:
Learning from the Clean Air Acts Tragic
Flaw.) The EPA has taken a definition
tucked away in the CAAs Section 111(a)(1)
and applied it to Section 111(d)(1) to bolster
its authority to promulgate standards of performance. It has generated more paper and
felled more trees than anything that Ive seen
to datesomething like 3.4 million comments on the rule, numerous applications to
the courts, he said.
Industrys basic arguments assert that
Congress, in passing Section 111, did not
authorize the EPA to restructure the power
sector, and neither does it permit the EPAs
generation-shifting (or beyond the fence)
approach. Industry also argues that standards
of performance must be set for or apply to individual sources, not owners or operators,
as the EPA asserts, citing 45 years of prior
EPA interpretations of Section 111. Essentially what the opponents argue is that EPA
is asking or mandating those sourceswhich
EPA equates to owners and operators for the
first time. Instead of making changes at their
source, or facility, they have to go outside of
that and find ways to reduce carbon via cap
and trade and other methodologies to reduce
carbon emissions even if they cant achieve it
at their site, said King.
The EPA, however, contends that generation shifting clearly falls within the definition of standard of performance, because
its the best system of emission reduction.
System is extremely expansive and can
include a broad scope of pollution-curbing
measures, he said. The EPA is also essentially saying that the power sector is already
trying to find carbon reductions. Theyre
saying: Were not doing anything that the
power sector isnt already doing now.
The legal challenges also pinpoint a seemingly tiny difference concerning the definition of standard of performance between
the so-called House versionwhich was
passed and put into U.S. Code and a Senate version, which is floating around,
King explained. The Senate versions defini-
Other Factors
Aside from the legal battle over the CPP, a
number of other factors are affecting the
power sector, and that has big implications
for coal generators, specifically, who are trying to decide how much money to spend to
maintain optionality, noted Block Andrews,
an associate environmental engineer with
Burns & McDonnell.
Topping his list of considerations that
are prompting shifts in power markets was
low natural gas prices, followed by plenty
of renewable subsidies, renewable portfolio standards, too many obstacles for new
coal, and multiple environmental rules
for existing fossil fuel sources impacting
competitiveness. Building a new coal plant
under MATS, for example, would require
reducing mercury levels for a non-lignite
plant by 98.5%, he said. Clearly, these limits are crazy low, and trying to get a guarantee for anybody for beating those limits is
basically impossible.
Power generators that are evaluating what
to do with existing coal plants in the face of
these considerations should assess whether
or not they can handle additional capital and
operational and maintenance costs. The first
thing to consider is the marketplace. Locational marginal pricing reflects the value of
the energy at the specific location and time it
is delivered, Andrews said. Clearly, where
you are in the continuum makes a difference
in what your future looks like.
Decisions may also be driven by several
other environmental rules, including the
EPAs ozone and cooling water rules, and especially by the effluent limitation guidelines
(ELG) and the coal combustion residuals
(CCR) rule. For the ELG and CCR rules, for
example, generators may have two options.
The first would be to close the facility in
2022, which would avoid ELG compliance
and dry ash conversion required by the CCR
rule; however, costs would still be required
for pond/landfill closures. Overall, this option
could cost about $1.5 million in 2020 (and
about $50,000 after 2024). Option 2 would
entail keeping the plant operational beyond
2022, Andrews said, but that would require
converting the bottom ash system to a dry
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And that trend will likely continue. Its
business-as-usual scenario, for example,
takes into account that about 12.6 GW of
coal capacity will retire as a result of MATS.
Among MISOs findings is that more coal retirements are certain depending on the level
of carbon reductions required under the CPP
or some other plan. Under a 17% emission
reduction by 2030 from 2005 levels, MISO
could see about 8 GW of retirements, but
under a 34% emissions reductionwhat the
regional transmission organization calls the
final CPP modelthe industry could see
24 GW of retirements.
Meanwhile, when exploring whether
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Advertisers Index
Enter reader service numbers on the FREE Product Information Source card in this issue.
Page
Reader
Service
Number
Ansaldo Energia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . . . . . .
CB&I
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Gradient Lens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 . . . . . . . 17
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Siemens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . 2
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Sentry Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 . . . . . . . 12
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Fluor Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . 6
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Rembe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 . . . . . . . 13
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Emerson Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 . . . . . . . 16
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Nord-Lock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . 5
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Clark Reliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 . . . . . . . 15
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Check-All Valve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . . . . . . . . 9
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MD&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 . . . . . . . 11
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . 4
Kepco KPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . 1
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United Rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . . . . . . . . 3
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Grisley ASC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 . . . . . . . 14
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