UTILITIES THINKING ABOUT NEW ENERGY

Coal losing favor as energy source for electric plants; Environmental concerns, lower prices are changing officials’ outlooks, Black & Veatch survey finds.

Steve Early, June 4, 2012 (Kansas City Star)

“...Demand for electricity is down because of the economy. Pressure is up to curb pollution and retire coal-fired plants. Natural gas, which burns cleaner and can be used to generate power, has slashed the price of wholesale electricity, which many utilities rely on for extra revenue. Conservation of electricity by consumers has plenty of potential, but how to encourage it without dinging a utility’s profits remains a problem.

“…[According to Black & Veatch’s 2012 Strategic Directions in the U.S. Electric Utility Industry] utility executives have high hopes for [electric vehicles] as a new source of business…[but] question estimates that show 7 percent of the country’s electricity could be used in electric vehicles by 2025…More than 80 percent of utilities are embarking on a major investment cycle, including upgrading transmission lines and retiring coal-fired power plants. Aging infrastructure has become the top issue for utilities…[M]ore than half of those surveyed think the rate increases will be significant.”

“…In 2010, the utility executives considered [wind energy] among the top three “environmentally friendly” technologies. But cheap natural gas…[and] Solar energy [have] climbed up the list…Overall, renewables are still seen as an opportunity by utilities, but a majority of executives surveyed said if their adoption caused rates to rise as much as 5 to 10 percent, then customers would question the investment…

“…Nuclear energy remains atop their “environmental” list. The radiation and continued potential for danger from the Japanese plants damaged in last year’s tsunami raise questions about how environmentally sound nuclear power is. But the executives’ confidence has been boosted in part by new plant designs…Black & Veatch is projecting that 450 coal-fired plants will be decommissioned by 2020 because of age or environmental regulations, and natural gas plants are getting serious attention as a replacement…”

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