End of unit at Teche power plant is part of Cleco Power’s IRP

The Louisiana Public Service Commission on May 25 signed off, through its “acknowledgement,” on the 2013 integrated resource plan (IRP) of Cleco Power LLC, which was filed in final form with the commission in September 2015.

Said the May 25 commission order: “The Company’s efforts, along with the input of the stakeholders, have resulted in a robust Final IRP Report. The Final IRP Report presents the results of four IRP Scenarios: (1) a Reference Case, (2) a Limited Case, (3) a Robust Case, and (4) a Clean Power Plan Case. In addition, Cleco conducted ten sensitivity analyses on the Reference Case and the preferred portfolio using the AURORA market model.

“The preferred portfolio projects the addition of 40 MW of site-unspecified cogeneration projects in 2020 and 2022; two 50 MW wind Purchased Power Agreements from unspecified resources in the Southwest Power Pool beginning in 2031; and defers the introduction of a 390 MW Simple Cycle Gas Turbine (‘SCGT’) from 2028 to 2031.

“As required by the IRP Order, Cleco developed a five year Action Plan as part of the IRP planning process. The five year Action Plan identifies Cleco’s plans to meet resource requirements in the near to medium term. The capacity of the resources available to Cleco during the next five years will exceed the commitment necessary to meet the forecasted customer load requirements and the peak demand forecast and still satisfy MISO’s planning reserve margin requirements. Thus, the Action Plan developed as part of the final IRP does not include any fossil fueled resource additions during the next five years.

“With respect to resource retirements, Cleco is planning to allow Teche Unit 1 to run to failure or to retire the unit. Additionally, Teche Unit 3 has been identified as being in a degraded condition.”

  • Teche Unit 1 is a natural-gas-fired facility that began operation in 1953 and is currently in poor overall condition. Major systems and equipment may require a higher maintenance investment in order to provide high availability and reliability. It has a nameplate capacity of 25 MW and a 15-MW operating capacity. Cleco says its “run-to-failure” plan for this unit would likely see its retirement at the end of 2017.
  • Teche Unit 3 is also gas-fired and began operation in 1971. It is currently in a degraded overall condition as compared to other power plants of similar age and vintage. Major systems and equipment may require higher maintenance investment in order to provide high availability and reliability. It has a 348-MW nameplate capacity and 335-MW operating capacity.

The May 25 commission finding added: “The Action Plan envisions that construction and permitting activities will be limited to those previously approved transmission projects, maintenance, and other projects that may be approved or required by the Commission.

“The Company will also comply with future environmental regulations and continue to monitor market trends, usage trends, the safety and reliability of its generation fleet, and other relevant factors that could result in resource adjustments.

“Before adding capacity or energy sources, the Company must comply with all of the relevant Commission Orders and requirements. The Commission’s acknowledgment of the Final IRP Report does not constitute Commission approval of Cleco’s IRP or any specific resource decision that Cleco made within the IRP, though the IRP may be considered in any future Commission proceedings concerning Cleco’s resource plans.”

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.