Indiana Michigan Power, which is under pressure from environmentalists to shut outright or at least stop burning coal at its 2,600-MW Rockport plant, still plans to install selective catalytic reduction (SCR) controls for NOx on both units later this decade.
Nancy A. Heimberger, employed by American Electric Power Service Corp. (AEPSC) as a Financial Analyst Senior Staff in Corporate Planning and Budgeting, touched on that subject in annual Power Supply Cost Recovery (PSCR) testimony filed Sept. 30 at the Michigan Public Service Commission. Indiana Michigan Power is a unit of American Electric Power (NYSE: AEP).
Heimberger wrote: “I&M currently consumes both activated carbon and sodium bicarbonate at its Rockport Plant. Activated carbon is injected into the flue gas stream to reduce mercury emissions, and sodium bicarbonate is used with dry sorbent injection equipment to reduce SO2 emissions. Selective Catalytic Reduction (SCR) equipment is forecasted to be installed at Rockport Unit 1 in 2017 and Rockport Unit 2 in 2019. This equipment will use anhydrous ammonia in a process designed to reduce NOx emissions.
“I&M’s 2017 PSCR forecast includes expenses associated with theconsumption of activated carbon and sodium bicarbonate at Rockport Plant. Beginning in 2018, the forecast also includes expenses associated with the consumption of anhydrous ammonia in conjunction with the SCR equipment.”
Supplying companion testimony was Charles F. West, Manager, Coal Procurement, in the regulated Commercial Operations organization of AEPSC.
Located in Spencer County, Indiana, Rockport, I&M’s sole coal generating station after the retirement last year of the Tanners Creek coal plant, consists of two 1,300-MW units. Sulfur dioxide (SO2) emissions at Rockport are limited by the New Source Performance Standard to 1.2 lbs. SO2 per million British thermal unit (MMBtu). Compliance with the emission limit is achieved by using a blend consisting primarily of low-sulfur subbituminous coal. The coal supply for Rockport currently uses a blend of Powder River Basin (PRB) coal from Wyoming and low-sulfur bituminous coal from eastern sources.
West noted that in order to comply with stricter U.S. Environmental Protection Agency (EPA) emissions standards, Dry Sorbent Injection (DSI) is being used at both Rockport units. The use of DSI technology has not resulted in a need to change the coal blend at Rockport.
Eastern coal can be received directly into the plant, while western coal is received at the Cook Coal Terminal and transloaded to barge for shipment to the plant when needed.
The majority of I&M’s need for coal during 2017 will be supplied by a combination of short-term contracts and one long-term coal contract that has been in place for several years. In addition to these contracts, coal may also be purchased to fulfill any additional supply requirements through spot agreements with various other suppliers. I&M expects to receive approximately 6.5 million tons of coal in 2017 at the Rockport plant at a projected weighted average delivered cost of 206.58 cents per MMBtu or $37.62 per ton (exclusive of affiliated transportation costs), West reported.