The wrong plan at a critical time in our nation's energy future
Thomas W. Howard, CEO/General Manager
If you have been following energy news, you may have heard the U.S. Environmental Protection Agency (EPA) has proposed the biggest, most consequential rule that will likely prevent new and close existing fossil fuel power plants. This plan has the potential to greatly jeopardize electric reliability and affordability for all consumers.
I’d like to use this article to talk about the proposed power plant rule and explain why Callaway Electric Cooperative joins the National Rural Electric Cooperative Association (NRECA) in opposing it.
Understanding the proposed rule
Under the Clean Air Act (CAA), the EPA proposal targets the nation’s power plants in an effort to limit greenhouse gas emissions from new and existing fossil fuel-fired electric generating units. The regulation would require significant CO2 emissions controls that would become increasingly stringent the longer the utility plans to run the unit. These restrictions would start in 2030.The compliance deadlines endanger new and existing natural gas plants and all but ensure coal units will opt to shut down by 2035. Losing generation that is considered dispatchable or “on demand” power is detrimental to the future of electric reliability and affordability. It is also unlikely the necessary changes and infrastructure will be ready in time due to cost, supply chain challenges, permitting, public opposition, land ownership/access and more.
The proposal hinges on the widespread adoption of clean hydrogen and carbon capture and storage. While both technologies are promising, they are not yet widespread or commercially available and have not been “adequately demonstrated” as required by CAA. I would question if any of these technologies are being used effectively in the United States today.
NRECA submitted written comments to the EPA in August as part of the rulemaking process. The agency is expected to publish the final rule in spring 2024.
A risk to reliability at a critical time
In my view, the EPA’s proposal is the wrong plan at a critical time for our nation’s energy future. It is unrealistic, unachievable and will reduce key generating resources as Americans continue to increase their reliance on electricity.
Last December, nine states faced power shortages that led to rolling blackouts. These situations will become more frequent if these new rules are put into place because retiring existing generating assets that are dispatchable 24/7 without sufficient replacement of reliable power capacity results in more blackouts, higher costs and greater uncertainty for Americans. This will magnify today’s reliability challenges with real consequences for an already stressed electric grid.
Cooperatives lead energy innovation
Co-ops across our nation are already being smart and strategic as we work toward a responsible energy future. You can find information from our power supplier, Associated Electric Cooperative, Inc. within this issue of Rural Missouri. The article addresses AECIs three-tiered system and dedicated approach to electric reliability.
At Callaway Electric, our Green Power Program allows environmentally conscious members to buy renewable energy credits generated from wind through our power supply network. It’s a simple and innovative way for members to support renewable energy in our region.
Even with concerted efforts from local co-ops and power suppliers to produce environmentally responsible electricity, the EPA’s expectation that the electric industry can generate more electricity with fewer resources over an unrealistic timeline is not a practical approach. It is unacceptable for rolling blackouts to become the new normal.
We will continue to keep a close eye on this topic and stand up for reliability, affordability and a smart approach to meet our member’s future energy needs.
Pictured above: Associated Electric Cooperative Inc’s Thomas Hill Energy Center located in Clifton Hill, MO. The location includes three generating units with a capacity of 1,153 MW. In 2022, AECI generated 61% of member electric load from coal. Photo courtesy of Associated Electric Cooperative.