By Leah Justice

 Duke Energy said it heard concerns from communities and has scrapped its modernization plans calling for new transmission lines through Henderson and Polk counties and Landrum and Campobello.

Duke Energy held a press conference on Wednesday morning, Nov. 3 to announce its new plan.

The new plan calls for two natural gas plants to be constructed at Duke’s Asheville coal plant property off Long Shoals Road in Skyland by 2020 and a third plant specifically to handle peak times in 2023 if necessary. Duke Energy representatives said the third plant can be avoided with energy saving programs.

Duke Energy’s Roger Sipes said since introducing the modernization plan earlier this year, “we have received quite a bit of feedback.”

Sipes said Duke will now replace its coal plant in Asheville with two smaller units instead of the previously planned large plant in Campobello, which would have required large transmission lines connecting the two plants.

 

“By having two smaller natural gas plants, the proposed 45-mile line and Campobello substation are no longer needed,” said Sipes.

Plans also call for Duke stepping up efforts to work with customers and other groups to reduce peak power demands, solar energy and construction of a third natural gas unit in 2023 depending on the success of the efforts, which could delay or completely mitigate the need for the third unit, Sipes said.

Duke does plan to construct a solar installation and also rebuild existing transmission lines in the area.

Duke’s Lloyd Gates said the process of involving the community worked.

“We listened to and responded to over 9,000 comments,” said Gates. “The new plan balances the concern raised by the community.”

Sen. Tom Apodaca said the system worked.

“The good news here today is the people were heard,” said Apodaca. “It’s great news for western North Carolina.”

Apodaca specifically thanked Jeff Miller from Hendersonville City Council for his efforts as well as the Hendersonville Mayor and Henderson County officials.

“We are thrilled with what is getting ready to happen,” said Apodaca.

Duke representatives allowed questions during the press conference.

Questions included how Duke could go from saying there was now way around needing a new plant to the new plan.

Sipes said the original plan was what Duke believed was the best technical solution. He said after hearing concerns, the original plan may have been the best technical solution, “but not the best practical solution.”

One reporter asked what the new costs for the two plants will be compared to the original plan.

Sipes said the current project will be about the same cost as the original plan, not including the third plant if necessary, which is estimated at an additional $150 million. The original plan estimated costs of $1.1 billion.

Another question was what tipped Duke’s decision to switch plans.

“That’s what influenced us more than anything,” said Sipes.

On what Duke Energy is giving up by deciding to construct two smaller plants instead of a larger one with new transmission lines, Sipes said the initial plan would allow Duke Energy to meet the needs of the area for the next 20-30 years. The new plan does not have as long of viability, he said, however, the new plan gives Duke more flexibility.

Sipes also answered a question regarding if any new power lines will be needed. Sipes said new lines will largely be in the vicinity of the plant.

“No new transmission lines will be needed,” he said.

Duke officials were asked if they were surprised by the response from residents and groups over the initial plan.

Sipes said yes, “and we took that seriously.”

Sipes was also asked how the response to the initial modernization plan with new transmission lines compared to other responses in other areas.

Sipes said as sometimes making people mad is part of the job.

“In this case the reaction was more significant than most and in some cases very thoughtful,” Sipes said. “The reaction was more significant than what we normally see.”

The Bulletin asked what Duke’s plans are now for its property in Campobello. Representatives said Duke will continue to own and maintain its Campobello property, but does not have any plans for it for the unforeseeable future.

The new plan includes filing for a certificate in December and officially filing notice in 2016.

In an email and release sent from Duke Energy’s Craig DeBrew to Polk County, the two new natural gas plants can also operate on oil in case of an interruption of the natural gas supply. The plan also calls for a utility-scale solar at the Asheville site and rebuilding existing transmission lines and substation upgrades on existing rights of way to increase Duke’s ability to import power into the Asheville region.

The need for a third plant will depend greatly on community participation in energy efficiency, load reduction programs, renewables and related technology, according to Duke officials.

DeBrew said Duke’s commitment, which has never wavered, is to serve all its customers with safe, reliable, affordable power, generated as cleanly and efficiently as possible.

“And we want to do that in a way that’s respectful of our customers and communities,” DeBrew said. “While the previous plan was a longer-term and better technical solution for meeting the power demand in the region, after hearing the community’s feedback, the new plan is clearly more appropriate and a better fit.”

The need for a modernization plan stems from the growth in western North Carolina. Power demand has tripled in the area since 1970 with the region continuing to boom with 14 new hotels currently being developed in Buncombe County and more than $1 billion in new industrial development planned, according to Duke Energy.

“We know this process has been difficult for many people, and we appreciate your feedback and patience as we finalize this work,” DeBrew said. “With your input, we got the information we needed to forge a plan that balances our commitment to supply safe, reliable, cost-effective power, while preserving the area’s natural beauty.”

The Polk County Board of Commissioners was the first in the region to approve a resolution against Duke Energy’s plans to run transmission lines through the county. Saluda and Columbus quickly followed with resolutions, along with several other local governments in the area.

Following is a press release from Duke Energy announcing its new plan:

Duke Energy responds to community concerns; creates new plan for Western Carolinas Modernization Project 

Modernization of Asheville Power Plant site reconfigured with smaller natural gas units; retains plan for solar generation

§  Proposed 230-kV Foothills Transmission Line and Campobello substation no longer necessary

§  Third power plant to be built on the site in 2023 or later dependent on success of collaborative efforts in energy efficiency, demand response, renewable energy and new technologies

ASHEVILLE, N.C. – Duke Energy today announced it has created a new plan for its proposed infrastructure upgrade for the Western Carolinas in response to community feedback.

Under the revised plan, the company will replace its coal plant in Asheville with two smaller gas units rather than one large one. As a result, the proposed 45-mile Foothills Transmission Line and Campobello substation are no longer necessary.

Western North Carolina is growing faster than most other areas in the Carolinas. To successfully meet the region’s growing power needs, the revamped project will require significantly more participation in energy efficiency, demand-side management, renewable energy and developing technologies from the company, communities and customers in the region.

“I want to thank everyone who has been involved in this process for their input and patience, including those who sent us more than 9,000 comments regarding our proposed transmission line and overall project,” said Lloyd Yates, Duke Energy’s executive vice president for market solutions and president of the Carolinas region. “We believe the process worked.

“We have been committed to developing a plan to maintain the region’s power reliability with the least possible impact on communities, property owners and the environment from the start of this effort, and we believe our revised plans accomplish those goals,” said Yates.

The new plan does require a stepped-up effort to work with customers and interested groups to expand participation in programs to reduce peak power demand and grow renewable energy and associated technologies. It also includes a two-phased approach to reconfigure the Asheville Power Plant site that will provide the same significant environmental benefits as the original modernization plan.

“While the previous plan was more robust and scaled for the longer-term, the new plan balances the concerns raised by the community and the very real need for more electricity to serve this growing region,” said Yates. “We’re eager to ramp up our efforts in working with the community to reduce power demand across the region through energy efficiency, demand response, renewable energy and other technologies to work collectively to avoid building additional generation in the area for as long as possible.”

Reconfigured Asheville Power Plant site

The reconfigured plan for the Asheville Power Plant site includes:

·         Retiring the coal units as scheduled by 2020

·         Building two highly efficient natural gas combined-cycle 280-megawatt units on the site, with the option for a simple-cycle 190-megawatt unit in 2023 or later, depending on the success of the company and community’s efforts to reduce daily and peak power demand

·         New units that will be designed to operate with a dual fuel source so oil can serve as emergency backup in the event of an interruption of the natural gas supply

·         Plans for a utility-scale solar power plant on the site

·         Rebuilding existing transmission lines and related substation upgrades using existing transmission rights-of-way to increase Duke Energy Progress’ ability to continue importing enough power into the Asheville region to serve the region’s growing power demand and meet federal power reliability standards

New plan features significant environmental and customer benefits

As with the original plan, the newly reconfigured natural gas units are estimated to have significantly lower environmental impacts than the existing coal plant.

§  Sulfur dioxide will be reduced by an estimated 90 to 95 percent

§  Nitrogen oxide will be reduced by an estimated 35 percent

§  Mercury will be eliminated

§  Water withdrawals will be reduced by an estimated 97 percent

§  Water discharges will be reduced by an estimated 50 percent

§  Carbon dioxide emissions will be reduced by about 60 percent, on a per-megawatt-hour basis, due to the efficiency of the new gas units and the fact that natural gas burns more cleanly than coal

(The percentages above are conservative and include both phases of the modernization project. Final percentages will be determined after the company receives environmental permits.) 

The smaller combined cycle gas units have efficiency ratings similar to the original plan, which enables the units to be about 35 percent less expensive to operate than the existing coal units. These savings will be annually passed on to customers dollar-for-dollar via the company’s annual fuel clause adjustment.

The company will be working with major suppliers of key components for the plant to further refine the overall cost estimate, but it is expected to be essentially the same as the original plan of approximately $1.1 billion.

“This region’s economy is booming with 14 new hotels, two national craft breweries and more than $1 billion in new industrial investment in just the last five years,” said Robert Sipes, Duke Energy’s general manager of delivery operations for the Western Carolinas.

“So our challenge now is to support that growth while working with the community to reduce the region’s peak power and ongoing demand through much more participation in energy efficiency programs, demand response and renewable energy and related technologies,” added Sipes. “A great example of such a collaborative effort is Asheville’s newly adopted Clean Energy Policy Framework where we look forward to being an active participant working with others to find real solutions to reduce peak energy demand.”

Since 1970, peak power demand has more than tripled in Duke Energy Progress’ Western Region, which serves 160,000 customers in nine Western North Carolina counties. Ensuring power reliability was particularly difficult during the winters of 2014 and 2015, when peak demand was 30 percent higher than in 2013. Over the next decade, continued population and business growth is expected to increase overall power demand by more than 15 percent.

The company plans to file for a Certificate for Public Convenience and Necessity (CPCN) with the North Carolina Utilities Commission for the new gas units in January 2016.

For more information about the company’s proposals see http://www.duke-energy.com/western-carolinas-modernization/.

About Duke Energy:

Duke Energy is the largest electric power holding company in the United States. Its regulated utility operations serve approximately 7.3 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 23 million people. Its Commercial Portfolio and International business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.