Dive Brief:
- Alabama Power plans to convert 1,600 MW of coal capacity to natural gas to meet air emissions standards, a move that will cut its coal capacity by 20%.
- The Southern Co. unit plans to begin by adding gas-firing capability to four 255-MW units at its coal-fired Gaston plant in Wilsonville, Alabama, by 2016. The utility plans to add a baghouse to a fifth 824-MW unit at Gaston in 2016 so it can keep burning coal.
- Alabama Power also plans to convert three coal units at its Barry plant totaling 524 MW to natural gas in 2016.
Dive Insight:
Clean air rules are driving utilities across the U.S. to evaluate their coal fleets. In many cases, older and smaller plants are being retired. Other plants are being switched to natural gas. Already, utilities are burning less coal and using more natural gas and renewable resources, according to the Energy Information Administration. There's no sign this trend is going to change any time soon.