Posted by K Effective on July 01, 2016 at 12:46:40 from (162.235.236.141):
In Reply to: War on coal posted by Geo-TH,In on July 01, 2016 at 05:13:27:
Quoting Removed, click Modern View to see
Surprisingly, the national electricity demand HAS declined, a lot. Which makes the value of generation drop, while costs continue to rise. Without the numbers in front of me, I think the recent auction of 2018 electricity ended at about a third of what it was last year ($18 vs $57). Without a growing industrial customer base, utilities must cut out the least profitable generation sources. While nuclear is less expensive than coal, the budget tightening edict has been sent out loud and clear inside the nuclear power industry.
I am not sure that some of the nuclear plant closures are not the result of the utilities wanting to get their hands on the huge piles of money they have collected in decommissioning fees, but I have no proof, of course.
In some cases (CA), it may be just being tired of fighting the enviro people for four decades. Plus, Fukushima has proven to us that even the best laid plans of Man are susceptible to the Power of the Lord.
AEP has recently converted a former coal plant to NG. It takes advantage of so much of the infrastructure already in place- switchyard access to the grid, cooling water supply, workforce, etc. AND these are base-load plants designed to run for extended periods, not the gas-turbine peak plants on the edge of nearly every city. I have no doubt we will see more of this, if it proves to work as designed. Then, watch the price of NG shoot back up...
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