September 27, 2017 Read More →

Utility Execs Press for Transition to Gas and Renewables

SNL:

Power generators are reiterating plans to move away from coal­fired generation as coal producers continue to participate in a tight supply market.

CMS Energy Corp. President and CEO Patricia Poppe noted the utility has reduced its carbon intensity by 30% since 2005, surpassing targets of the Obama administration’s Clean Power Plan, at an event Sept. 25.

According to SNL Energy fuel contract data, recent suppliers of CMS Energy coal plants include Peabody Energy Corp., Cloud Peak Energy Inc. and Arch Coal Inc.

During a Sept. 26 presentation NextEra Energy Inc. CFO John Ketchum said that even when renewable tax incentives like the production tax credit and investment tax credit expire, the economics of renewables continue to suggest a healthy competition against other fuel sources. He noted that the production tax credit ratchets down to 40% by the end of 2023.

“That gives us a lot of time for wind economics to continue to improve by the time we get to the middle of the next decade,” he said. And then with solar, the [investment tax credit] doesn’t go down to 10% until 2022. … So a lot of room there to continue to achieve economic efficiency and further cost declines in the sector, which match up very well against the other forms of generation.”

More: Major suppliers of NextEra coal plants include Cloud Peak and Contura Energy Inc.

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