December 7, 2018 Read More →

TVA’s Johnson: Utility’s coal plant closures make economic sense

Reuters:

The chief executive of Tennessee Valley Authority said on Thursday the U.S.-owned power generator will keep cutting carbon emissions in future years after replacing much of its coal-fired fleet with plants run on natural gas, nuclear and renewables.

Since Bill Johnson took the reigns as CEO in 2013, TVA has spent $15 billion to modernize its generating fleet, reduced carbon emissions by retiring coal units, and cut debt by $3.5 billion, all while keeping consumer electric prices basically flat for six years.

“Carbon emissions are now down to 50 percent below 2005 levels. I predict CO2 will fall to 60 percent below 2005 levels by 2020/2021 and 70 percent by the end of the next decade,” Johnson told Reuters in an interview.

The company continued to shut coal-fired units over the past two years despite efforts by U.S. President Donald Trump to prop up the coal industry by sweeping away former President Barack Obama’s climate change regulations, like the Clean Power Plan.

Johnson said TVA shut old coal plants for economic reasons. “We have reduced carbon emissions simply by doing what is the most efficient and effective way to serve our customers,” Johnson said, noting the low cost of gas in recent years has made it more economic for TVA to build a new gas-fired power plant than refurbish a 60-year old coal unit.

Over Johnson’s tenure, TVA’s generating mix transitioned from 41 percent coal and 12 percent gas in 2012, the year before he became CEO, to 19 percent coal and 20 percent gas in 2018, according to TVA’s federal filings. And TVA may not be done retiring coal plants.

More: TVA to keep cutting carbon with natural gas, nuclear power plants: CEO

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