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Conservation groups oppose part of Duke coal plant conversion

Conservation groups represented by the Southern Environmental Law Center are challenging part of Duke Energy's application for the conversion of the Lake Julian power plant from coal to natural gas.

MountainTrue and the Sierra Club sought the review of Duke Energy's petition to build two new natural gas-fired 280-megawatt units, as well as a third 192-MW unit designed to meet additional peak demand, saying the extra unit "looks like a bet against the success" of conservation measures Duke and community partners have committed to.
Duke Energy Progress, whose service territory includes Asheville and other parts of Western North Carolina, on Dec. 16 submitted to the Utilities Commission a notification of intent to file an application for a “certificate of public convenience and necessity” for the new gas units to replace a coal-fired plant at Lake Julian south of Asheville by  2020.

In its letter to the Commission, Duke has stated that the "peaking” unit may not be needed if the company can meet demand through energy efficiency programs and greater use of renewable technologies. Duke is currently in discussions with the City of Asheville and Buncombe County, MountainTrue and the Sierra Club to develop those alternatives.
MountainTrue and the Sierra Club, represented by the Southern Law Environmental Center, are requesting to intervene in the proceeding to ensure that the proposed gas plant is truly needed to provide power to Duke’s customers in Western NC, as required under state law, and that the company maximizes its use of cleaner, cost-effective alternatives such as energy efficiency and renewable energy.
“Duke’s stated intent, albeit qualified, to build a 192 MW peaking gas unit looks like a bet against the success of the recently established Community Clean Energy Policy Framework—a community partnership to achieve demand reductions through energy efficiency measures," said Kelly Martin, senior campaign representative for the Beyond Coal campaign in North Carolina. "That framework, as Duke has publicly stated, ‘involves substantive conversations with the city and other stakeholders about ways to increase renewable energy, energy efficiency and evolving technologies here locally.’
“We therefore encourage Duke to postpone seeking approval for a gas peaker unit in Asheville, and urge the company to include a specific financial commitment to measurable energy efficiency goals as part of the Modernization Project Certificate of Public Convenience and Necessity application.
“Taking these two steps will go a long way toward retaining and building confidence in the community partnership on reducing energy use.”
Julie Mayfield, co-director of MountainTrue, said including the peaking unit in the filing was "unfortunate."
“Duke has told the public that they are looking for cleaner alternatives, then they turn around and ask the public utilities commission for permission to build the additional unit seven years before they say it might be necessary," she said.
“We believe in the commitment of the local Duke officials to this process, but it seems that one hand may not know what the other is doing. We want Duke to be all in on seeking alternatives to the third unit instead of building in a back door, and we are asking them to send a clear message that they are fully committed to finding cleaner, sustainable alternatives by removing the peaking unit from their filing to the utilities commission.”
D.J. Gerken, Managing Attorney, Asheville Office of the Southern Environmental Law Center, said: “In 2015 the General Assembly gave Duke a fast track for review of this proposal – but not a free pass to overbuild its new fossil fuel plant and stick its customers with the bill. Duke needs to make a real commitment to renewable energy and energy efficiency in the mountains and put up data to prove that it needs this expansion.
“I am especially skeptical of Duke’s request for up-front approval to build a 190 MW peaking unit it would not need until 2023, if ever, when the company said just two months ago it was working to avoid the third unit with new investments in energy efficiency.”
The application for approval could be filed as soon as Jan. 15. A public hearing is set for 7 p.m. on Jan. 26 at the Buncombe County Courthouse. A decision by the Utilities Commission must be made within 45 days from the date of the filing, or as soon as Feb. 29.
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Karim Olaechea, Communications Director
MountainTrue
29 N Market Street STE 610