Remember all the bleating about a "train wreck" AEP CEO Michael Morris was doing a couple of months ago about implementation of the EPA's Clean Air rules? He told the press that the EPA rules would cause a disaster with mass unemployment, sky-high electric rates and huge blackouts. Guess what? He was full of hot air, again. I'm sure you're not surprised about that, are you?
He also told a financial analyst on an earnings call that coal plant retirements would cause a new need for the PATH project. Well, that didn't happen either.
PJM has released their analysis on Mikey's supposed reliability crisis. Coal Capacity at Risk for Retirement in PJM: Potential Impacts of the Finalized EPA Cross State Air Pollution Rule and Proposed National Emissions Standards for Hazardous Air Pollutants.
And here's the money quote: Resource Adequacy Does Not Currently Appear at Risk in Spite of Projected Retirements.
"Even with almost 7,000 MW less coal capacity clearing for the 2014/2015 Delivery Year, PJM estimates the RTO will carry a reserve margin of 19.6 percent for the Delivery Year, including the demand and capacity commitments of FRR entities. Even with the potential retirement of coal capacity already announced by FRR entities, there are also announced commitments to replace a portion of that capacity with new gas-fired capacity such that the RTO would still carry a reserve margin at or above of the target 15.3 percent installed reserve margin. Add into the mix the potential for new entry from Demand Resources, as has been the trend in recent years, and resource adequacy does not appear to be threatened."
Chooo-Chooooo! All Aboard, Mikey!
He also told a financial analyst on an earnings call that coal plant retirements would cause a new need for the PATH project. Well, that didn't happen either.
PJM has released their analysis on Mikey's supposed reliability crisis. Coal Capacity at Risk for Retirement in PJM: Potential Impacts of the Finalized EPA Cross State Air Pollution Rule and Proposed National Emissions Standards for Hazardous Air Pollutants.
And here's the money quote: Resource Adequacy Does Not Currently Appear at Risk in Spite of Projected Retirements.
"Even with almost 7,000 MW less coal capacity clearing for the 2014/2015 Delivery Year, PJM estimates the RTO will carry a reserve margin of 19.6 percent for the Delivery Year, including the demand and capacity commitments of FRR entities. Even with the potential retirement of coal capacity already announced by FRR entities, there are also announced commitments to replace a portion of that capacity with new gas-fired capacity such that the RTO would still carry a reserve margin at or above of the target 15.3 percent installed reserve margin. Add into the mix the potential for new entry from Demand Resources, as has been the trend in recent years, and resource adequacy does not appear to be threatened."
Chooo-Chooooo! All Aboard, Mikey!
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