Hoosier Energy outlines power capacity position in latest resource plan

Hoosier Energy Rural Electric Cooperative on Nov. 1 filed with the Indiana Utility Regulatory Commission an update to its 2014 integrated resource plan that shows the cooperative has lost some of its coal-fired capacity in the interim period.

As part of normal business operations, Hoosier Energy has made a number of resource decisions since the 2014 IRP was filed. These decisions include both resources that were included in the 2014 IRP, but are no longer a part of Hoosier Energy’s Capacity Expansion Plan (Plan) and resources that have been added to the Plan since 2014.

  • Frank E. Ratts Generating Station Retirement – At the time of the 2014 IRP filing, Hoosier Energy had suspended operations at one of the Ratts coal units, which was not included as an active generating resource in the IRP. Subsequent to the last IRP, both units (250 MW total) were retired in 2015.
  • Unit Contingent Sale – The 2014 IRP assumed a 200 MW Unit Contingent Sale from the coal-fired Merom station. Based upon results of a 2016 request for proposals, market conditions and other risk factors, Hoosier Energy now plans to retain that capacity for the benefit of member systems. Therefore, the 200 MW sale is no longer included in the Plan.
  • Renewable Resources – The Hoosier Energy Board of Directors adopted a Renewable Energy Program that defines targets and evaluation criteria for renewable projects. This policy was revised in 2014 setting a target of obtaining 10% of member energy requirements from renewable resources by 2025.

Here are changes to the renewable resource portfolio since the 2014 IRP filing:

  • The Osprey Point Renewable Energy Station has been removed as an active generating resource. This resource, which commenced operations in 2013, was idled in September 2016 primarily due to fuel supply issues and challenging market conditions. The Osprey Point facility remains a future resource option but is not included in the 2016 Capacity Expansion Plan.
  • Hoosier Energy included two 4 MW landfill gas units as future resources in the 2014 IRP. Hoosier Energy no longer plans to construct these resources.
  • The 2014 IRP included a 50 MW Wind power purchase agreement (PPA) beginning in 2017. Subsequently, Hoosier Energy entered into a contract with EDP Renewables for 75 MW of capacity and energy from the Meadow Lake Wind Farm, which is located in White County, Indiana. The PPA is structured such that Hoosier Energy will receive the first 25 MW beginning in 2018 and the remaining 50 MW in 2020.

Absent the acquisition of additional resources, Hoosier Energy said it will have a need for additional capacity requirements during the summer months of the forecasted period in 2023-2024.

The following supply-side resources were incorporated into Hoosier Energy’s assessment of resource options:

  • Merom – Merom units 1 and 2 are coal units with capacities of 491 MW and 489 MW, respectively.
  • Holland – Holland is a gas unit with a capacity of 625 MW. Hoosier Energy owns 50% of the facility in a partnership with the Wabash Valley Power Association. All facility-related costs are shared equally between the two entities.
  • Worthington – The Worthington units 1-4 are gas units, each with a capacity of approximately 41.5 MW.
  • Lawrence – The Lawrence Generating Station consists of six units, with a total capacity of 258 MW. Hoosier Energy owns two-thirds of the units, with Wabash Valley Power Association owning the other one-third share. All facility-related costs are shared proportionally between the two entities.
  • Purchased Power Agreement – Hoosier Energy currently has three purchased power contracts in place with Duke Energy Indiana. Two of the contracts are 100 MW. One terminates at the end of 2017 and the other terminates at the end of 2023. The contracts require that Hoosier Energy purchase a minimum of 65% of the total annual contract MWh, which provides optionality. Hoosier Energy has also entered into an additional purchased power contract that began in 2016, which provides the same optionality as the other contracts. This contract will provide Hoosier Energy with 50 MW, and will terminate at the end of 2025.
  • Clark-Floyd – Clark-Floyd is a landfill gas unit with a capacity of 4 MW. For purposes of this IRP update, the unit is expected to retire at the end of 2027.
  • Story County – Story County is a 25 MW Wind PPA. The PPA contract is assumed to expire April 30, 2019.
  • Livingston – Livingston is a landfill gas unit with a capacity of 15.2 MW. For purposes of this IRP update, the unit is expected to retire at the end of 2031.
  • Orchard Hills – Orchard Hills is a landfill gas unit with a capacity of 16 MW.
  • Dayton Hydro – Dayton Hydro is a hydro PPA with a capacity of 3.6 MW. For purposes of this IRP, the PPA is expected to expire at the end of 2031.
  • Rail Splitter – Rail Splitter is a 25 MW Wind PPA with expected annual generation of 74,000 MWh per year.
  • Solar – Hoosier Energy’s solar resources will equal 10 MW by mid-2017 with expected annual generation of 20,000 MWh per year.
  • Meadow Lake Wind PPA – The Meadow Lake Wind PPA is expected to start in 2018. The PPA will provide 25 MW of capacity in 2018 and an additional 50 MW of capacity beginning in 2020. The full PPA is expected to provide annual generation of 175,000 MWh.
  • Renewable Resources – In addition to the individual supply-side resources described above, Hoosier Energy also assumed that it would acquire sufficient renewable resources to meet the revised Board Policy target of 10% of member load by 2025 and continuing thereafter.
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.