Regulations a Factor in WI Coal Plant Shuttering

Alliant Energy plans to retire one of the three coal generators at its Edgewater Generating Station in Sheboygan and two others at its Nelson Dewey Generating Station in Cassville by 2015. The move comes as more restrictive state and federal regulations on coal plant emissions are scheduled to go into effect.

Alliant Energy, doing business as Wisconsin Power & Light Co., plans to spend $1.4 billion over the coming years to retool its generating fleet. The changes will mean Alliant will generate more megawatts from natural gas than coal when the projects are complete after more than doubling the amount of power the utility generates from natural gas and cutting back coal-power by 35%.

Alliant’s plan involves:

• Retiring the Nelson Dewey Generating Station Units 1 & 2, located in Cassville, WI, which total approximately 200 MW.
• Retiring the Edgewater Generating Station Unit 3, located in Sheboygan, WI, which is approximately 60 MW.
• WPL will also decide between repowering to natural gas or retiring Edgewater Generating Station Unit 4 by the end of 2018. This unit is located in Sheboygan, WI. It is approximately 330 MW, and co-owned with Wisconsin Public Service Corporation (WPS).
• Purchasing of the Riverside Energy Center, a 600 MW combined-cycle natural gas facility in Beloit, Wisconsin, by the end of 2012.
• Filing with the Public Service Commission of Wisconsin (PSCW) for authority to install a scrubber/baghouse system to reduce SO2 emissions from Edgewater Unit 5 to support compliance with the currently stayed Cross State Air Pollution Rule (CSAPR) or its replacement. Upon its completion, SO2 emissions from Unit 5 are expected to be reduced by approximately 90% per year from current levels. WPL expects a decision from the PSCW by the second quarter of 2013. If approved, construction on the approximately $390 million to $430 million project is expected to begin in 2014 and be completed in 2016.
• Finishing construction of a nitrogen oxide (NOx) reduction system on Edgewater Unit 5 (Selective Catalytic Reduction or SCR System). The approximately $153 million SCR system will be completed by the end of 2012. Upon its successful completion, NOx emissions from Unit 5 are expected to be reduced by approximately 75% per year from current levels to comply with Wisconsin’s Reasonably Available Control Technology (RACT) Phase II requirements and CSAPR or its replacement.
• Constructing sulfur dioxide (SO2) and mercury reduction systems at Columbia Units 1 and 2 (scrubbers and baghouse/carbon injection systems). WPL’s share of the project cost is approximately $300 million. Scrubber and baghouse/carbon injection systems will be completed in 2014. Upon their successful completion, SO2 and mercury emissions from Columbia are expected to be reduced approximately 90% per year from levels prior to the installation of any SO2 and mercury emissions controls. The emission reductions support compliance with the CSAPR or its replacement and both state and Federal mercury rules.