Calpine (NYSE: CPN) has indicated to the New Jersey Department of Environmental Protection that it plans to retire the units at its oil-fired Missouri Energy Center power plant in Atlantic City.
The state agency is taking public comment until Feb. 8 on an air permit renewal for the plant, also known as the Missouri Avenue facility, which consists of three simple cycle combustion turbines which are capable of generating up to 24 MW each. The facility is typically utilized to generate electricity during periods of peak demand. The facility is owned by Calpine New Jersey Generation LLC and is operated by Calpine Operating Services Co. Inc.
The plant has three Turbo Power and Marine model FT4A-8 simple cycle combustion turbines (emission units U2, U3, and U4) which utilize water injection to control NOx emissions. These turbines each have a maximum generating capacity of 24 MW. These turbines are each permitted to combust fuel oil with a sulfur content of no more than 0.07% for up to 650 hours per year.
Among the emission sources at this facility are combustion turbines that are High Electric Demand Day (HEDD) units as defined under New Jersey code. “Beginning May 1, 2015, these turbines will be subject to the HEDD emission limits in Table 7 [in state code],” said a DEP permit document. “As currently operated, these turbines are not capable of complying with these emission limits. If additional emission controls, capable of enabling these turbines to comply with the applicable HEDD emission limits, are not installed and operated by May 1, 2015, these turbines must cease operation on this date. Calpine has indicated in the latest update to their 2015 Plan (submitted in February 2013, pursuant to N.J.A.C.7:27-19.30) that they intend to retire these turbines prior to May 1, 2015.”
A list of pending deactivations from PJM Interconnection shows that there was an April 2012 request to deactivate, as of May 31, 2015, Missouri Avenue CTs B, C and D. In all three cases, the PJM list, updated to Jan. 3, shows for these units about grid reliability evaluations related to these shutdowns: “Reliability Analysis complete – impacts identified – upgrades scheduled to be completed by May 2015.”