Changes in Store for Plant Mitchell
Press release from the issuing company
Monday, January 13th, 2014
Georgia Power announced today that it plans to file a request in 2014 with the Georgia Public Service Commission to decertify Unit 3 at Plant Mitchell in Albany, Ga. The company is also cancelling the previously proposed conversion of the coal-fired unit to biomass after extensive review and analysis deemed the conversion would not be cost effective for its customers. If the request to decertify the 155 megawatt unit is approved, it will be retired by April 16, 2015 – the compliance date of the United States Environmental Protection Agency's Mercury and Air Toxics Standards Rule.
"We are continuously evaluating our generation mix to determine what sources provide the best long-term value for our customers," said John Pemberton, senior vice president and senior production officer for Georgia Power. "Fuel diversity is key in providing clean, safe, reliable and affordable energy and we will continue to leverage natural gas, coal, nuclear and renewables, as well as energy efficiency programs, as part of our robust portfolio."
Since proposing the conversion to biomass in 2008, Georgia Power has worked to assess the project in light of new EPA regulations, as well as changing market and economic conditions. In addition to increased capital costs and costs related to environmental compliance, multiple other factors, such as the recent economic downturn and lower natural gas prices, have significantly reduced the project's value and benefits for customers. The company also considered switching the unit to Powder River Basin (PRB) coal or natural gas, neither of which proved viable.


