Thursday, April 2, 2009

"Little Gypsy" Conversion Postponed

Entergy Louisiana announced today that it has filed a report with the LA Public Service Commission recommending a three year or more delay in the repowering of its Little Gypsy plant. Entergy had proposed converting an old gas-fired plant into a coal plant. I thought this was particularly a ridiculous idea and counter to the economy of the state and the region. Why import coal when you've got the biggest supply of gas in the country under your feet?!?! The economics of the project have proved unworkable, so the conversion project has been shut down for now. Good riddance!

From an article in New Orleans City Business:
"The utility says the move was based on “significant uncertainties in the economics of the project,” stemming from the recent decline in natural gas prices, changing federal energy policies and the current financial crisis.

"The utility estimates that canceling the project will cost about $300 million.


"The Public Service Commission last month rescinded its approval of the project, which called for converting Entergy’s natural gas-powered plant in Montz to run on coal and petroleum coke, directing the utility to present a report showing its plans remained economically feasible.

"Environmental groups have staunchly opposed the project, noting that it would lead to an increase in greenhouse gas emissions and that new federal carbon regulations could mean the project would wind up costing ratepayers significantly more than advertised. "

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