Costs of coal power plant proposal challenged
The state's largest electric utility is underestimating the costs that will be passed on to customers under a proposal to shut down part of an aging coal-fired power plant in northwestern New Mexico, according to a regulatory filing made Friday by advocates of renewable energy.
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#1 Aug 29, 2014
""It's about shifting these risks, whether it's the environmental risks or decommissioning costs, from the shareholders to the ratepayers," said Mariel Nanasi, executive director of New Energy Economy. "That's really what this is all about. That's why this is not just a climate issue. It's an economic issue.""
You can say the same thing about any power plant even solar. What are the decommissioning costs? An example, the San Onofre nuclear plant in California has been deemed unfit for repair so it has been shut down. Now the ratepayers have been charged for decades on every electric bill for a decommissioning charge on the plant. Now SCE is saying it will take another 1.8 billion to decommission the plant. This will be a future rate increase for ratepayers for a product they no longer get. Awards are given to nuclear facilities for their "efficient" and cheap power production. The decommissioning costs should be included in the total cost of each KWh of power produced. It has not been taken into account until a generation facility cannot produce power anymore. Then you will have to charge the ratepayers for the decommissioning costs and charge the ratepayers again for the construction of another generation plant to replace the generation lost. Yeah, double down on the ratepayers and sooner or later you will push them to solar PV and perhaps even their own energy storage system.
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