Owned and operated by the City of Lakeland, it sources its coal from Alpha Natural Resources’ Jad Coal Dayhoit Tipple mine.
The 110-year-old, 982 megawatt plant was called a “microcosm of the entire power generation industry” in 2012 after a complete controls upgrade of the gas-fired plant in 2011 prepared it for its expanded role in producing electricity.
“It’s not a pretty picture,” the IEEFA said.
The study stated that the coal part of the plant would require additional capital expenditures in addition to $US70 million ($A99.72 million) poured over the past few years into keeping it running.
“The amount of electricity it has generated has declined precipitously since 2008, largely as a result of its unreliable operations and from competition by less expensive plants in Florida,” the IEFFA said.
“Lakeland Electric and the Orlando Utilities Commission, which share ownership of Mcintosh Unit 3, would be doing their public a favour by taking it off line.
“Such a move would not reduce regional electric-grid reliability. If the 364 megawatt unit were to go dark, Florida would still have more than enough generating capacity to serve projected system loads and to provide the 15% capacity reserve margin needed to allow for unexpected power plant outages and unanticipated high system loads.”
The IEEFA also argued that if the Mcintosh Unit 3 was retired, its owners could purchase replacement power, if required, from excess capacity at existing natural-gas-fired combined-cycle plants and save money for ratepayers by investing in energy conservation and solar photovoltaic resources.
“Such a strategy would enable Lakeland Electric and the Orlando Utilities Commission to retire the plant without increasing their long-term dependence on natural gas,” the report said.
“Development of solar photovoltaic energy in Florida, the state with the third–highest potential for solar energy, is a no-brainer for municipal utilities and their ratepayers.
“Energy efficiency is an exceptionally low-cost and underdeveloped alternative to keeping the plant alive.”
