On Oct. 9, Dynegy Inc. (NYSE: DYN) entered into a settlement with the California State Water Resources Control Board that would resolve the company’s pending challenge to the Statewide Water Quality Control Policy on the Use of Coastal and Estuarine Waters for Power Plant Cooling.
“Under the settlement agreement, the State Water Board has agreed to propose an amendment to the Policy which would extend the compliance deadline for all four units at Moss Landing from December 31, 2017 to December 31, 2020,” said Dynegy in its Nov. 6 Form 10-Q report. “The State Water Board will initiate the public rulemaking process associated with the proposed amendment within three months of execution of the settlement agreement and take final action on the proposal within six months.
“We are required to implement operational control measures at Moss Landing for purposes of reducing impingement mortality and entrainment, including the installation of variable speed drive motors on the circulating water pumps for Units 1 and 2 by year end 2016. In addition, we must evaluate and install supplemental control technology at Units 1 and 2 by December 31, 2020. The settlement agreement also clarifies the implementation and applicability of various Policy provisions to Moss Landing. Operation of Moss Landing Units 6 and 7 beyond 2020 would be allowed only if those units comply with the Policy’s impingement mortality and entrainment standards, which would require the evaluation and installation of control technology, the cost of which would vary depending on the projected operational profile of the units.”
The gas-fired Moss Landing plant’s four existing units are: Units 1-2, 1,020 MW net in total, intermediate duty; and Units 6-7, 1,509 MW net in total, peaking.