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
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
CIOs and those charged with running IT Operations are challenged to deliver secure, audited, and reliable compute environments for the applications and data for the business. Behind the scenes these tasks are often accomplished by following onerous time-consuming processes and often the management of these environments and processes will be outsourced to multiple IT service providers. In addition, the division of work is often siloed into traditional "towers" that are not well integrated for cro...
SYS-CON Events announced today that FalconStor Software® Inc., a 15-year innovator of software-defined storage solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. FalconStor Software®, Inc. (NASDAQ: FALC) is a leading software-defined storage company offering a converged, hardware-agnostic, software-defined storage and data services platform. Its flagship solution FreeStor®, utilizes a horizonta...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that Column Technologies will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principal...