Another Coal Plant Wins Lifeline Despite Biden's Green Push




  • In World
  • 2022-08-18 21:31:12Z
  • By Bloomberg

(Bloomberg) -- CenterPoint Energy Inc. is delaying retirement of a coal-fired power plant in Indiana as a surge in wholesale electricity prices and uncertainty about some renewable projects undermines President Joe Biden's push to decarbonize the grid.

Most Read from Bloomberg

  • Apple Targets Sept. 7 for iPhone 14 Launch in Flurry of New Devices

  • Covid's Harmful Effects on the Brain Reverberate Years Later

  • Biden Called Cheney After Her Loss to Trump-Backed Challenger

  • Xi and Putin to Attend G-20 Summit in Indonesia, Jokowi Says

  • After 2,240% Run, Tesla Visionary Leaves UK Fund Bleeding Money

CenterPoint plans to keep operating the 90-megawatt F.B. Culley 2 unit near the Ohio River until 2025, according to a meeting and presentation Thursday. Previously, the company had planned to shut the facility in 2023.

It's just the latest move by US utilities to prolong the life of fossil-fuel assets to address uncertainty about the pace of transition to renewable energy sources. Earlier this year, NiSource Inc. said it would run two coal units an additional two years as a solar-trade probe spurred delays in renewable projects nationwide.

By prolonging the lifespan of Culley 2, CenterPoint can ensure local electricity supplies and avoid buying more expensive power from rivals. Indiana plants are reaping unprecedented windfalls this summer after power supplies were squeezed by a wave of shutdowns during the peak-demand period for electricity. CenterPoint spokeswoman Erin Merris confirmed the plan via email.

CenterPoint's move is especially notable because it conflicts with a nationwide push to decarbonize the power sector. Just days ago, Biden signed the Inflation Reduction Act that dedicates $374 billion to accelerate the transition to clean energy such as solar arrays and wind farms.

A spokesperson for the regional grid operator didn't immediately respond to a request seeking comment.

(Adds confirmation from spokeswoman in fourth pararaph.)

Most Read from Bloomberg Businessweek

  • Richest Silicon Valley Suburb Says Build Anywhere But Here

  • AMC's CEO Will Do Whatever It Takes to Keep His Company a Meme Forever

  • Chinese EV Maker BYD Aims to Conquer World Markets as the Un-Tesla

  • A Crypto Winter King Wants to Reanimate the Industry

  • Neobanks Are Struggling to Make Good on Their Lofty Promises

©2022 Bloomberg L.P.

COMMENTS

More Related News

Ian Latest: Biden Reaffirms Florida Aid as More Damage Emerges
Ian Latest: Biden Reaffirms Florida Aid as More Damage Emerges

(Bloomberg) -- Florida's hurricane damage is "likely to rank among the worst" in US history, President Joe Biden tweeted on Saturday, as Ian weakened to a...

Fed Begins to Split on the Need for Speed to Peak Rates
Fed Begins to Split on the Need for Speed to Peak Rates

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Most Read from BloombergMacKenzie Scott Files ...

Danes: Nord Stream 2 pipeline seems to have stopped leaking
Danes: Nord Stream 2 pipeline seems to have stopped leaking
  • US
  • 2022-10-01 16:11:30Z

The Danish Energy Agency says one of two ruptured natural gas pipelines in the Baltic Sea appears to have stopped leaking natural gas. The agency said on...

Goldman
Goldman's Petershill, Hunter Point Near SLR Capital Stake Deal

(Bloomberg) -- Goldman Sachs Group Inc.'s Petershill unit and Hunter Point Capital agreed to acquire a minority stake in credit-focused asset manager SLR...

Jan. 6 and Mar-a-Lago Inquiries Converge in Fights Over Executive Privilege
Jan. 6 and Mar-a-Lago Inquiries Converge in Fights Over Executive Privilege

WASHINGTON - Two high-profile criminal investigations involving Donald Trump are converging on a single, highly consequential question: How much residual...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: World