The NC Utilities Commission (NCUC) has approved Progress Energy Carolinas' plan to build a new natural gas-fueled power generation in Wayne County, to replace a coal-fired plant that the utility will retire in 2013.
The commission has approved a certificate of public convenience and necessity for Progress Energy Carolinas’ proposed 950MW combined-cycle power plant near the site of the HF Lee coal-fired plant.
The company revealed its plan to retire the plant’s three coal-fired units on August 18, and filed the certificate request the same day. The streamlined review process was authorized by legislation approved by the NC General Assembly in July.
The natural gas-fueled plant represents a projected investment of about $900m. It is expected to create up to 500 construction jobs over the 24-month building process, Progress Energy said.
The plan will also involve the construction of a natural gas pipeline to the site in Wayne County. Progress Energy expects to reveal a contract for the gas supply in the near future, said the company.
As planned, the new plant will increase the amount of electricity that can be produced at the site by about 550MW. The additional generating capacity may be used to meet the demands of customer service area, meet evolving environmental requirements and to provide for additional resource flexibility.
Lloyd Yates, president and CEO of Progress Energy Carolinas, said: “For nearly 60 years, the Lee Plant has been a vital part of the resource mix we use to meet the needs of the households and businesses that depend on us.
“Replacing the plant with new, advanced-design, cleaner-burning plants will help ensure we have dependable, affordable power for our 1.5 million customers and for future generations.”
The company plans to file for a state air permit in the coming months. The schedule calls for construction to begin in 2011.
According to the company, there are about 70 employees at the Lee Plant. The company is working to ensure that as many as possible will have jobs at the new facility or opportunities to move to other positions at company facilities. The existing power plant will close once the new plant is online.
The three Lee Plant coal units were built in 1951, 1952 and 1962. They are located on the Neuse River west of Goldsboro. In 2000, the company built four combustion-turbine units at a site adjacent to the Lee Plant, called the Wayne County Energy Complex. Earlier this year, a fifth combustion turbine was added at Wayne County. Those units are used primarily as peaking plants, to meet increased demand for electricity on the hottest and coldest days of the year.
Progress Energy said that the existing Wayne County Energy Complex would accommodate the additional gas-fueled generation. Unlike the existing gas-fired units at Wayne County, the new units will be operated in combined cycle. The addition will include three combustion turbines with additional equipment added to recover exhaust heat to generate steam.