|By PR Newswire||
|January 23, 2014 12:29 PM EST||
Report Finds Handwriting May Already Be On the Wall for 45-Year-Old Coal Plant Whose Pre-Tax Earnings "Fell off the Cliff" in 2009 and Are Unlikely to Recover to the High Pre-2009 Levels; Lower Natural Gas Prices, Lower Energy Market Prices & Other Trends Too Much to Overcome.
HARTFORD, Conn., Jan. 23, 2014 /PRNewswire-USNewswire/ -- A new financial analysis report cautions that PSEG's Bridgeport Harbor Unit 3 – the last coal-fired power plant in Connecticut and one of the few remaining such facilities in New England – has been in deep financial trouble since 2009, and is unlikely to be financially viable for the long-term. The report from the independent and nonprofit Institute for Energy Economics and Financial Analysis (IEEFA) is intended to help policymakers and residents near Bridgeport Harbor Unit 3 understand the need to start planning now for the retirement of the coal-fired power plant.
The IEEFA report notes that Bridgeport Harbor Unit 3 has been buffeted for years by the same economic pressures -- low natural gas prices, low market prices, and flat or declining electricity demands – that have led to the retirement of more than 13,000 megawatts (MW) of the country's coal-fired power plant fleet from 2009-2012.
IEEFA released an earlier report reaching similar conclusions about the prospects for the Somerset, Massachusetts-based Brayton Point Station. Immediately after making investments of more than $1 billion in pollution control equipment, Dominion Resources sold the 1,580 MW Brayton Point Station for the fire-sale price of an estimated $55 million, reflecting a substantial financial loss. Within a month of closing on that transaction, the new owner gave notice of its intent to retire Brayton Point in 2017.
Sandy Buchanan, executive director, IEEFA, said: "Community leaders and others would be well-advised to start planning now for the shuttering of Bridgeport Harbor 3. The financial handwriting is already on wall for this power plant that is so old that it was launched when LBJ was President of the U.S. There is no reason to believe that Bridgeport Harbor can somehow survive the negative financial pressures that already have taken down scores of other coal-fired power plants."
David Schlissel, report author and director of resource planning analysis, IEEFA, said: "The future of the Bridgeport Harbor Unit 3 coal plant looks bleak. The bottom line here is that PSEG Power's pre-tax earnings from Bridgeport Harbor Unit 3 dropped off a cliff in 2009. Based on currently expected future circumstances, there is no credible reason to expect that these pre-tax earnings will again reach the high levels achieved in 2007 and 2008. PSEG's after-tax profits from the plant will be even lower because it has to pay taxes, interests and depreciation from these pre-tax earnings."
Cathy Kunkel, report co-author and IEEFA research fellow, said: "Bridgeport was designed to provide baseload electric power, but due to changes in the grid, most significantly the availability of substantial amounts of low-cost power from natural gas-fired combined cycle units, Bridgeport is now being relied on for peaking service when natural gas-fired units are constrained. Long start-up times, as much as a full day to reach full power, make it difficult for Bridgeport and other aging coal power plants to serve this peak service, back-up role."
Highlights of the report include the following:
- Bridgeport Harbor Unit 3's capacity factor for 2012 was only 3 percent and for the first 10 months of 2013 was only 15.9 percent. The IEEFA report states that the coal-fired power plant is unlikely to reach the 71-87 percent capacity factors achieved before the collapse of natural gas prices in 2009.
- New England's current energy and peak load forecasts are relatively flat through 2022. Consequently, instead of serving higher energy loads, Bridgeport Harbor Unit 3 will have to continue to compete with low cost natural gas-fired units and new renewable resources to serve existing energy demands.
- Circumstances that are anticipated to drive continued low pre-tax earnings from Bridgeport Harbor are: low market pricing for natural gas; the addition of increased gas pipeline supply into the Northeast, starting sometime in 2016-2018; relatively high operating costs and low energy market prices in turn necessitating very little power generation from the plant except for in peak winter months; relatively flat demand for energy in the New England market; and possible federal action on climate change resulting in higher costs for greenhouse gas (GHG) emissions by the end of this decade.
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute's mission is to help facilitate the transition to a diverse, sustainable and profitable energy economy and to reduce dependence on coal and other non-renewable energy resources. For more information, go to http://www.ieefa.org on the Web.
EDITOR'S NOTES: The IEEFA study, related PowerPoint presentations, and a streaming audio replay of this news event will be available as of 3 p.m. EST on January 23, 2014 at http://www.ieefa.org.
SOURCE Institute for Energy Economics and Financial Analysis (IEEFA), Cleveland, OH
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 7, 2016 05:15 PM EST Reads: 923
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 05:15 PM EST Reads: 277
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
Dec. 7, 2016 05:15 PM EST Reads: 224
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 7, 2016 05:15 PM EST Reads: 1,731
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Dec. 7, 2016 05:00 PM EST Reads: 1,911
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 7, 2016 04:30 PM EST Reads: 1,670
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
Dec. 7, 2016 04:15 PM EST Reads: 320
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 04:15 PM EST Reads: 779
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
Dec. 7, 2016 04:15 PM EST Reads: 310
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU's GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes. In...
Dec. 7, 2016 04:00 PM EST Reads: 1,269
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
Dec. 7, 2016 03:48 PM EST Reads: 223
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Dec. 7, 2016 03:45 PM EST Reads: 2,245
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 7, 2016 03:30 PM EST Reads: 1,768
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 02:30 PM EST Reads: 4,308
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Dec. 7, 2016 02:30 PM EST Reads: 939