Gulf Power nearing completion of Daniel air controls, Scholz plant retirement

Gulf Power told the Florida Public Service Commission in an April 1 filing of its annual Environmental Compliance Plan update that it is on track to complete the latest air emissions controls on coal-fired capacity.

This is the eighth update of Gulf’s original Environmental Compliance Plan, which was initially filed in 2007. Since the plan was originally approved, Gulf has installed the following air emission controls in order to comply with various rules, including the Mercury and Air Toxics Standards (MATS): Plant Crist FGD scrubber, Plant Crist Unit 6 Selective Catalytic Reduction (SCR), Plant Smith Unit 1 and Unit 2 Selective Non-Catalytic Reduction (SNCR), Plant Smith CAlR parametric monitor, Plant Daniel Low NOx burners, and the Plant Scholz mercury monitoring system.

“Gulf is on schedule to complete its MATS compliance projects during 2015,” the Southern Co. (NYSE: SO) subsidiary added. “The Plant Daniel scrubbers as well as the bromine and activated carbon injection (ACI) systems are expected to be placed in-service by December 2015. The transmission upgrades needed for MATS compliance at Plant Smith and Plant Crist are projected to be completed by June 2015.

“In early 2015, the Company finalized its MATS compliance strategy for Plant Smith and determined that the most cost-effective option was to retire the Plant Smith coal-fired Units 1 and 2 in March of 2016. Plant Smith’s remaining units will continue to operate and generate electricity.

“As previously discussed, Gulf has determined that it is not economical to add the environmental controls at Plant Scholz necessary to comply with MATS and Plant Scholz will retire in April 2015.

“With the exception of the Plant Daniel Units 1 and 2 SCRs, each of the projects addressed in Gulf’s Compliance Plan (including the updates since 2007) have either been installed, are projected to go into service in 2015 or have been eliminated from consideration for compliance with CSAPR/CAIR, MATS/CAMR, and the CAVR. The Plant Daniel Units 1 and 2 SCRs have a projected in-service date of 2022. Rather than continue the practice of filing annual updates to the Compliance Plan as adopted by the Company in response the Commission’s approval of the June 22, 2007 stipulation memorialized in Order No. PSC-07-0721-S-ET, Gulf believes that it would be more efficient for the Company to simply provide a periodic status report regarding the Plant Daniel Units 1 and 2 SCRs up until the point that these projects are ready to move from the planning phase to an execution phase.

“Gulf Power owns and operates three fossil- fueled generating facilities in Northwest Florida (Plants Crist, Smith and Scholz). Gulf also owns a 50 percent undivided ownership interest in Units 1 and Unit 2 at Mississippi Power Company‘s Plant Daniel. This fleet of generating units consists often fossil steam units, one combined cycle (CC) unit, and one combustion turbine (CT). The nameplate generating capacity of Gulf’s generating fleet affected by CAIR/CSAPR, NAAQS, MATS, and/or CAVR is 2,783 megawatts (MW).”

The coal plants are:

  • Plant Crist is a four-unit, coal-fired facility located just north of Pensacola, Florida. Three older natural gas/oil-fired units at the site have been retired. Units 4 and 5 each have a nameplate rating of 93.75 MW and Units 6 and 7 have nameplate ratings of 370 MW and 578 MW, respectively.
  • Gulf Power’s ownership interest at Plant Daniel is associated with two coal-fired units that have a nameplate rating of 548.25 MW each. The facility is located just north of Pascagoula, Mississippi. The Plant Daniel scrubber projects are scheduled to be placed in service by December 2015. Some functional scrubber testing is in progress. The Plant Daniel Units 1 and 2 SCRs are now scheduled to be in service by 2022. This projected timeline for compliance with the anticipated ozone NAAQS revisions is based on promulgation of a revised, lower ozone standard in 2015. This timeline is subject to change because it is influenced by several different parties and factors. The best option to meet the MATS limits at Plant Daniel includes installing the commission-approved scrubbers and bromine and activated carbon injection (ACI). Engineering, procurement, and construction of the Plant Daniel bromine and ACI systems began in January 2014. Both injection systems are projected to be placed in service with the scrubbers during fourth quarter of 2015.
  • Plant Smith includes the coal-fired Unit 1 and Unit 2, along with a 32-MW oil-fired combustion turbine (CT) and a 556-MW natural gas-fired combined cycle unit. It is located just north of Panama City, Florida. Plant Smith Unit 1 has a nameplate rating of 149.6 MW, and Unit 2 has a nameplate rating of 190.4 MW. In early 2015, the company finalized its MATS strategy and determined that the most cost-effective option was to retire the Plant Smith coal-fired Units 1 and 2 in March 2016.
  • Plant Scholz consists of two coal-fired units that each have a nameplate rating of 49 MW. The facility is located in Jackson County, Florida. In response to finalization and evaluation of the MATS rule, Gulf has decided to retire Plant Scholz in April 2015. 
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.