Electric Co-op Today

The extensive emissions controls required for coal-based generating units under Environmental Protection Agency rulemakings entail significant challenges for utilities, and electric cooperatives in particular, NRECA cautioned federal regulators.

Lisa Jackson

EPA’s proposed Electric Utility Generating Unit Hazardous Air Pollution Rule, combined with its final Cross State Air Pollution Rule, “pose serious implications for electric reliability and/or affordable wholesale power,” the association underscored.

These implications are particularly severe for electric co-ops, NRECA told the Federal Energy Regulatory Commission in a Dec. 9 filing. The commission asked for comments at the conclusion of its Nov. 29-30 technical conference on reliability, which focused in part on EPA’s regulations.

In explaining the stakes for co-ops, NRECA noted that most G&Ts are small entities compared to their utility industry counterparts, and thus will not be priority customers for engineering and emissions control companies that will supply and install the needed equipment.

This might necessitate ceasing operations at some G&T units after EPA’s 2015 compliance deadline until the necessary controls can be installed, NRECA noted.

Additionally, the association pointed out, many G&Ts have just a few generating units and are heavily coal-reliant. With the entire utility industry within their regions stressed under the weight of the rules, “it is presently unclear how much wholesale power will be available, and, if available, at what market price,” NRECA wrote.

These factors could lead to “dramatic and unacceptable impacts” on electric co-ops’ wholesale electricity prices,” the association said.

In light of this situation, NRECA indicated that it has petitioned EPA for an extension of the hazardous air pollutant rule’s compliance deadline for at least another two or three years.

However, EPA Administrator Lisa Jackson has said she expects to sign the final rule in the next few days.

It is imperative that FERC “understand the ramifications” if the compliance deadline is not extended, NRECA underscored.

Tags: Electric Grid, Environmental Protection Agency, Federal Energy Regulatory Commission, Hazardous Air Pollutants, North American Electric Reliability Corporation, Reliability Standards