Welcome!

News Feed Item

IEEFA Report: NRG's Troubled Huntley Coal-Fired Power Plant in Western NY Appears "Headed for Retirement"

Report Outlines Options for Community to Adjust for Loss of 70 Jobs, 6 Percent of Local School Financing;  Low Natural Gas Prices, Increased Efficiency Among Factors Behind Average $1 Million Annual Loss.

BUFFALO, N.Y., Jan. 28, 2014 /PRNewswire-USNewswire/ -- NRG's Huntley coal-fired power plant in Tonawanda, New York, just outside of Buffalo, is experiencing average annual pre-tax earnings of a negative $1 million and "does not appear to be financially viable," according to a new Institute for Energy Economics and Financial Analysis (IEEFA) report requested by the Clean Air Coalition of Western New York.

Available online at www.ieefa.org, the IEEFA financial analysis outlines how the local community can start planning now to handle the projected 70 lost jobs at the Huntley coal plan, as well as the projected 5.9 percent of the region's Ken-Ton School District budget that will be lost when Huntley disappears from the tax rolls.

The Huntley Generating Station, located in Tonawanda, is one of the few remaining coal-fired power plants in New York State.  Huntley originally consisted of 6 units, placed into service between 1942 and 1958.  Units 1 and 2 (totaling 180 megawatts) were retired in 2005; Units 3 and 4 (totaling 200 MW) were retired in 2007.  The remaining two units, each 218 MW, were placed into service in 1957 and 1958.   Huntley is owned and operated by New Jersey-based NRG Energy, the largest competitive power generation company in the United States.  

Cathy Kunkel, report co-author and research fellow, IEEFA, said: "The bleak financial future for the Huntley plant does not indicate any near-term relief from the economic forces that have made the plant unprofitable in recent years. Since 2008, weak demand for electricity, coupled with low natural gas prices, have pushed down wholesale electricity market prices.  Coal costs are projected to continue rising, driven by productivity declines as the most accessible coal seams are mined out.  These economic factors have led to serious financial troubles for deregulated coal-fired power plants. From a financial standpoint, the Huntley coal plant now appears headed for retirement."

Erin Heaney executive director, Clean Air Coalition of Western New York, said: "The economics of the Huntley plant just don't add up. There isn't a viable future for this facility as a coal plant. We feel that it's time for everyone to come to the table to preserve workers' jobs, preserve the environment and generate sufficient tax revenue for the region."

Former First Deputy New York State Comptroller Tom Sanzillo, report co-author and director of finance, IEEFA, said:  "The challenges posed by the Huntley plant can be handled by the region if planning starts now. We estimate there are less than 70 employees who may be affected by a coal plant retirement. The goal of our plan is to provide every employee with opportunities for a stable, long term income. The weak financial condition of the Huntley plant creates a revenue risk for the Town of Tonawanda, its Highway Department, Erie County and the Ken-Ton School District. By far the largest and most important NRG payment is to the Ken-Ton School District. As the plant's financing deteriorates, tax payments to the district will become smaller. The actual budget for 2012 for the district was $135 million. Payments from the Huntley plant constitute 5.9 percent of actual district expenditures for 2012. With adequate planning, the loss of revenue from the Huntley plant need not result in a sudden jolt to the school district budget."  

The IEEFA report analyzes the recent and projected future financial viability of NRG's Huntley coal-fired power plant in Western New York. The report finds that the pre-tax earnings generated by the plant have dropped precipitously in recent years, from a range of $56 million to $110 million in the years 2005-2008 to an average of -$1 million for 2009-2012. This has been driven by a "perfect storm" of conditions that have impacted deregulated coal plants around the country: low natural gas prices; stagnating power demand due to recession and increased energy efficiency; and uncompetitive coal prices.  Projections of future New York electricity market prices and coal prices do not indicate any relief from these trends, and the Huntley plant is not expected to approach its level of 2005-2008 earnings through at least 2020.   

SOURCE The Institute for Energy Economics and Financial Analysis, Cleveland, OH and The Clean Air Coalition of Western New York, Buffalo, NY

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...