Georgia Power to Delay Plant Mitchell Conversion to Biomass

/PRNewswire/ -- With the uncertainty of how future U.S. Environmental Protection Agency (EPA) regulations might affect industrial boiler emissions, Georgia Power has decided to delay the conversion of coal-fueled Plant Mitchell in Albany, Ga., to biomass until the EPA rules are better defined in April 2010.

The anticipated industrial boiler Maximum Achievable Control Technology rule, or "IB MACT," would regulate emissions of hazardous air pollutants, such as certain acid gases, organics, metals, and possibly other pollutants, from industrial boilers and would likely affect biomass boilers like the one planned for Plant Mitchell.

"Georgia Power is committed to furthering the development of renewable energy in Georgia," said Jeff Burleson, Georgia Power's director of Resource Policy and Planning. "We're disappointed to have to delay this large biomass project and the benefits it can deliver. However, by delaying capital spending on the project we're significantly reducing the cost risk to customers."

Georgia Power had originally planned to begin retrofit construction at Plant Mitchell in April 2011 with the unit becoming operational in June 2012. A new project schedule has yet to be determined.

Once the new EPA rules are better defined, Georgia Power will evaluate the potential impact they might have on the conversion project at Plant Mitchell. The company plans to study other boiler technologies in the event the rules significantly impact the cost of the biomass boiler conversion currently planned for the plant.

Upon conversion, Plant Mitchell will have lower emissions and will be one of the largest wood biomass plants in the United States. It will also have lower fuel and operating costs when compared to continued operation using coal, thereby making the plant more cost-effective for customers.

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Georgia Power Seeks Approval for Coal Plant Conversion to Biomass

PRNewswire/ -- Georgia Power today asked the Georgia Public Service Commission (PSC) for approval to convert coal-fueled Plant Mitchell to renewable wood biomass.

Upon conversion, Plant Mitchell - near Albany - would be capable of producing 96 megawatts of renewable energy - or enough electricity to power 60,000 homes. The plant would have lower emissions, and would be one of the largest wood biomass plants in the United States. It would also have lower fuel and operating costs when compared to continued operation using coal, thereby making the plant more cost-effective for customers.

Surplus wood fuel for Plant Mitchell would come from suppliers operating within an approximately 100-mile radius of the plant.

"Georgia Power is taking an important step toward continued diversification of its fuel sources and making renewable energy more affordable for customers," said Mike Garrett, Georgia Power president and CEO. "By converting Plant Mitchell to biomass, we hope to not only help grow the renewable resource base in Georgia but also to expand the market for renewable energy credits, which ultimately will foster additional renewable energy development."

Renewable energy credits are created when a renewable energy facility generates electricity or uses renewable fuel. The PSC is expected to rule on the proposal to convert Plant Mitchell to biomass by spring of 2009. Retrofit construction would begin by spring of 2011 and the biomass plant would likely begin operations in June 2012.

Georgia Power is the largest subsidiary of Southern Company, one of the nation's largest generators of electricity. The company is an investor-owned, tax-paying utility with rates well below the national average. Georgia Power serves 2.3 million customers in all but four of Georgia's 159 counties.