April 3, 2009

Louisiana Utility Says "NO" to Coal

Another coal plant bites the dust ... in LOUISIANA?! Yes, Louisiana -- one of the few states we South Carolinians often refer to on occasion -- as in "Well, at least we're not as bad as ________." This plant joins 131 other cancelled or otherwise stalled coal proposals. It's getting lonely for Santee Cooper (and shameful for the Palmetto State...).
Power plant refitting plan falls from favor
Politics, economics push Entergy to stay with natural gas for now
Friday, April 03, 2009
By Rebecca Mowbray
Business writer

Entergy Louisiana LLC is stepping back from plans to convert an aging natural gas plant in St. Charles Parish into a coal and petroleum coke plant.

The project to repower a unit of the Little Gypsy plant in Montz was announced in 2007 as a strategy to reduce the state's dependence on natural gas. But in recent months, the cost has risen to $1.76 billion, a host of new environmental regulations have come into play with the Obama administration, obtaining financing has become more challenging, and most important, natural gas prices have crashed, perhaps for the long-term.

The economics no longer add up to a win for customers, Entergy said Wednesday in a filing with the Louisiana Public Service Commission. It wants regulators' permission to put the project on hold for at least three years to give those factors a chance to play out, and it wants to do so before it reaches a point where it is stuck with the project.

"Continuing with the Repowering Project at this time would result in an irreversible investment decision based on the significant capital requirements associated with this Project, yet the resolution of the various uncertainties could produce scenarios in which the outcome of a decision to proceed would not benefit the Company's customers," the filing reads.

Read more: Times-Picayune, April 3
Read more: Times-Picayune, April 2: Entergy to Put Little Gypsy Project on Hold for Three Years

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