Duke Energy Florida plan includes new Citrus plant, coal retirements

As would be expected, the 1,640-MW (summer) Citrus Combined Cycle Project is featured heavily in the Ten-Year Site Plan (TYSP) that Duke Energy Florida filed April 1 with the Florida Public Service Commission (FPSC).

These plans, which are something like a truncated integrated resource plan, are filed annually with the commission by Florida utilities.

Duke Energy Florida’s (DEF) planned supply resource additions and changes are referred to as DEF’s Base Expansion Plan. This plan includes summer capacity uprates at the Hines Energy Center through the installation of Inlet Chilling, a combined cycle facility in 2018 in Citrus County, a purchase and proposed acquisition of Calpine‘s Osprey Energy Combined Cycle Unit in Auburndale and five planned Combustion Turbine Units at an undesignated site(s) with four units added in 2024 and one unit in 2025.

One new addition to the plan is the summer capacity of the Intercession City #11 peaker. DEF and Georgia Power have operated this unit jointly with Georgia Power controlling the capacity during the summer months. Based on a contractual obligation, DEF will purchase this capacity and anticipates having this firm capacity available in 2017.

DEF said it continues to seek market supply-side resource alternatives to enhance its resource plan and has extended a purchase power agreement with Southern Power Co. beginning in 2016. In addition to total summer existing capacity resources, DEF is planning to install 550 MW of solar photovoltaic capacity over the next 10 year period as an energy resource.

The promulgation of the Mercury and Air Toxics Standards (MATS) by U.S. EPA in 2012 presents new air requirements for the DEF units at Anclote, Suwannee and Crystal River.

  • Two steam units at Anclote and three steam units at Suwannee have switched to natural-gas-only operations in order to comply with the MATS rule. Residual Fuel Oil is no longer available at these two sites.
  • Crystal River Units 1 and 2 are not capable of meeting the emissions requirements for MATS in their current configuration and using the current fuel (coal). In addition, under the terms of the revised air permit, in accordance with the State Implementation Plan for compliance with the requirements of the Clean Air Visible Haze Rule, these units are required to cease coal-fired operation by the end of 2020 unless scrubbers are installed prior to the end of 2018.
  • DEF has received a one year extension of the deadline to comply with MATS for Crystal River Units 1 and 2 from the Florida Department of Environmental Protection. This extension was granted to provide DEF sufficient time to complete projects necessary to enable interim operation of those units in compliance with MATS during the 2016–2020 period.
  • DEF anticipates burning MATS compliance coals in Crystal River Units 1 and 2 beginning no later than April 2016. Although specific dates have not been finalized, DEF anticipates retiring the Crystal River Units 1 and 2 in 2018 in coordination with the 2018 startup of Citrus Combined Cycle operations.
  • DEF has received a one year extension of the deadline to comply with MATS for the coal-fired Crystal River Units 4 and 5 from the Florida DEP. This extension was granted to provide DEF sufficient time to complete projects necessary to enable long term operation of these units in compliance with the MATS.

DEF continues to look ahead to the projected retirements of several of the older units in the fleet, particularly combustion turbines at Higgins, Avon Park, Turner and Rio Pinar as well as the three steam units at Suwannee. Turner Unit P3 was retired July 2015. The Rio Pinar and Turner Units P1, P2 and P4 continue to show anticipated retirement dates in 2016. Suwannee steam units 1, 2 and 3 are projected to retire in November 2016. Continued operations of the peaking units at Higgins and Avon Park are planned until the year 2020. There are many factors which may impact these retirements including environmental regulations and permitting, the unit’s age and maintenance requirements, local operational needs, their relatively small capacity size and system requirement needs.

DEF’s Base Expansion Plan projects the need for additional capacity with proposed in-service dates during the ten-year period from 2016 through 2025. The planned capacity additions, together with purchases from Qualifying Facilities (QF), Investor Owned Utilities, and Independent Power Producers help the DEF system meet energy requirements.

As of Dec. 31, 2015, DEF had a summer total capacity resource of 11,360 MW. This capacity resource includes fossil steam generators (3,460 MW), combined-cycle plants (3,222 MW), combustion turbines (2,419 MW; 143 MW of which is owned by Georgia Power for the months June through September), utility purchased power (413 MW), independent power purchases (1,365 MW), and non-utility purchased power (481 MW).

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.