Progress Energy Florida, a unit of Duke Energy (NYSE: DUK), said in an April 1 filing with the Florida Public Service Commission that retiring units 1 and 2 at the Crystal River coal-fired power plant in Florida would be more cost effective than retrofitting them to comply with the Mercury and Air Toxics Standard (MATS) rule.
Progress said retiring the two older units by 2016 and replacing it with cleaner burning sources would save $1.32 billion in retrofit costs. The company said it would install flue gas desulfurization (FGD) and selective catalytic reduction (SCR) systems on units 4 and 5, but the pending Section 316(b) cooling water intake rule could ultimately affect what emission control technologies are used.
Progress said it would spend an estimated $1 million on compliance feasibility tests for units 1 and 2 to determine how the units perform using alternative coal sources. The company looked into options for extending operation of the units beyond MATS compliance dates using alternative fuels until replacement fuels are found.
To read the filing, click here.
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