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Friday, October 17, 2014

Power Plant Closures

So if somebody wants to build a coal-fired plant they can. It’s just that it will bankrupt them…”– Barack Obama speaking to San Francisco Chronicle, January 2008

More than 72 gigawatts (GW) of electrical generating capacity have already, or are now set to retire because of the Environmental Protection Agency’s (EPA) regulations. The regulations causing these closures include the Mercury and Air Toxics Standards (colloquially called MATS, or Utility MACT)[1], proposed Cross State Air Pollution Rule (CSAPR)[2], and the proposed regulation of carbon dioxide emissions from existing power plants.

Energy-InventoryFINAL

To put 72 GW in perspective, that is enough electrical generation capacity to reliably power 44.7 million homes[3]—or every home in every state west of the Mississippi River, excluding Texas.[4] In other words, EPA is shutting down enough generating capacity to power every home in Washington, Oregon, California, Idaho, Nevada, Arizona, Utah, Montana, Wyoming, Colorado, New Mexico, North and South Dakota, Nebraska, Kansas, Oklahoma, Minnesota, Iowa, Missouri, Arkansas, and Louisiana.


Over 94 percent these retirements will come from generating units at coal-fired power plants, shuttering over one-fifth of the U.S.’s coal-fired generating capacity.[5] While some of the effected units will be converted to use new fuels, American families and businesses will pay the price with higher utility bills and less reliability for their electricity.

This report is an update of a report we first issued in October 2011.[6]  In the original report, we calculated that 28.3 GW of generating capacity would close as a result of EPA’s regulations. At the time, we warned, “…This number will grow as plant operators continue to release their EPA compliance plans.” Unfortunately, this statement has proven to be true and will continue to grow in the future as new EPA regulations continue to be released. This latest update shows that 72.7 GW of electrical generating capacity will now close—a 44.4 GW increase.


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