Progess to Retire 11 Coal Plants - Analyst Blog

Progress Energy Carolinas, a wholly owned subsidiary of Progress Energy Inc. (PGN), announced plans to close all of its remaining North Carolina coal-fired power plants which do not have flue-gas desulfurization controls (scrubbers) by the end of 2017.

In a report filed with the N.C. Utilities Commission, the utility outlined its plan to close a total of 11 coal-fired units, totaling nearly 1,500 megawatts (MW) at four sites in the state. The plants to be closed include the 600-MW L.V. Sutton Plant near Wilmington, the 316-MW Cape Fear Plant near Moncure, the 172-MW W.H. Weatherspoon Plant near Lumberton, and the 397-MW H.F. Lee Plant near Goldsboro (retirement announced in August).

This represents nearly 30% of the company's coal-fired power generation fleet in North Carolina, which will result in significant emission reductions.

Progress also announced plans to build a new generation fueled by natural gas in Wayne County, N.C., and expects to announce additional gas plans in the near future. The company will continue to operate three coal-fired plants in North Carolina after 2017.

The company has invested more than $2 billion in installing state-of-the-art emission controls at the 2,424 MW Roxboro Plant and the 742 MW Mayo Plant, both located in Person County, besides the 376 MW Asheville Plant in Buncombe County, significantly reducing emissions at these sites.

The plan filed was in response to a request by the N.C. Utilities Commission. The regulatory agency ordered the company to provide its retirement plans related to "unscrubbed" coal-fired units in North Carolina. The request was part of the commission's approval in October of Progress Energy Carolinas' plan to build a 950 MW power plant, fueled by clean-burning natural gas, in Wayne County, N.C.

The plan confirms the company's decision to retire the Lee Plant in 2013. Additionally it provides schedules for other retirements, such as, the coal-fired Sutton Plant in 2014 and the five-unit Cape Fear and Weatherspoon plants between 2013 and 2017.

Read the full analyst report on "PGN"
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