HomeMy WebLinkAboutNC0004979_Annual Report_20240531('DUKE
ENERGY..
May 8, 2024
Dr. Sergei Chernikov
North Carolina Division of Water Resources
1617 Mail Service Center
Raleigh NC 27699-1617
Allen Steam Station
253 Plant Allen Road
Belmont NC 28012
704-829-2587
RE: Duke Energy Carolinas, LLC — Allen Steam Station W P �j� fV�f'S/j� F6PS
NPDES Permit NC0004979
Notice of Planned Participation — Annual Progress Report
Dear Dr. Chernikov:
In accordance with the provisions of the Steam Electric Effluent Limitations Guidelines (ELG),
Duke Energy Carolinas, LLC is hereby providing a Notice of Planned Participation (NOPP)
Annual Progress Report for the Allen Steam Station, NPDES Permit NC0004979. Initial
notification of the NOPP was provided to the DEQ on May 27, 2021. Specifically, the NOPP is
to permanently cease the combustion of coal. However, if Unit 5 does not cease combustion of
coal by the December 31, 2028 regulatory date, Duke Energy reserves the option to implement
necessary technology for compliance with the Voluntary Incentives Program (VIP) by December
31, 2028 as described below. The necessary information to support the NOPP annual status
report is specified at 40 CFR § 423.19(f)(4).
Unit Retirements
As of April 30, 2024, the current status of the Allen Steam Station units is as follows:
• Unit 1 — projected to retire on or before December 31, 2024
• Unit 2 — retired December 31, 2021
• Unit 3 — retired March 31, 2021
• Unit 4 — retired December 31, 2021
• Unit 5 — projected to retire on or before December 31, 2028
Please note that the projected retirement dates for Units 1 and 5 are subject to change based
on several factors including future regulatory actions.
Retirement Documentation and Information
The retirement date for Unit 1 is established by a consent decree (The United States District
Court for the Middle District of North Carolina, Civil Action No.: 1.00 cv 1262). A copy of this
consent decree is located at https://www.epa.00v/sites/default/files/2015-09/documents/duke-
energV-consent-decree-civil-action-lcv1262 0.pdf.
The retirement date for Units 2, 3, and 4 is provided in the United States Securities and
Exchange Commission (SEC) Form 10-K dated February 24, 2022 which is located at
https./idl8mOp25nwr6d.cloudfront.net/CIK-0001326160/902e4911-134b-4a90-bb47-
12ad64f50e03. pdf.
The proposed retirement date for Unit 5 is stated in the 2023-2024 Carolinas Carbon Plan
Amended Petition that was filed with the North Carolina Utilities Commission (NCUC) in Docket
E-100 Sub 190 on January 31, 2024. The Amended Petition filing is located at
https:/Istarwl .ncuc.gov/NCUC/PSC/PSCDocumentDetailsPageNCUC. aspx?Documentld=2b7f8
6la-2c48-404d-9e75-f4e6d7142702&Class=Filing The entire 2023-2024 Carolinas Carbon
Plan docket is located at https://starwl.ncuc.gov/NCUC/page/docket-
docs/PSC/DocketDetails.aspx?Docketid=7409648d-c9c2-4f42-8709-a0830971812d The
NCUC has scheduled hearings during 2024 regarding the Carolinas Carbon Plan with a
determination expected in late 2024
Excerpts from these three documents are enclosed with this annual report. Official retirement of
any Allen units beyond the already retired units will require final management approval.
Furthermore, the final retirement dates for Unit 1 and Unit 5 are contingent on a supporting
switching station project, maintaining adequate system reliability, and other operational
considerations including the ability to take care, custody and control the Lincoln Unit 17
Combustion Turbine by December 1, 2024.
A carbon reduction plan was filed with the NCUC on May 16, 2022 as required by North
Carolina House Bill 951 (HB 951). This filing proposed the retirement of the remaining Allen
Steam Station coal-fired units (1 and 5) by January 1, 2024. In order to facilitate retirement of
the two remaining Allen coal-fired units, the "South Point Switching Station" project will need to
be constructed and operational. This switching station project is currently under construction.
HB 951 also requires that the electrical system either maintains or improves reliability
throughout the energy transition and this could also impact the Allen Unit 1 and 5 retirement
dates.
In response to the May 16, 2022 filing, the NCUC ordered that Duke Energy submit another
carbon reduction plan by September 1, 2023. This task was timely completed and an additional
(supplemental) filing was made on January 31, 2024. Future NCUC actions and orders may
impact the projected Allen Unit 1 and 5 retirement dates.
As noted in our initial NOPP filing, a timeline to achieve the permanent cessation of coal
combustion by December 31, 2028 for Units 1 and 5 is as follows:
• Evaluate the validity of the anticipated retirement dates by June 301h of each calendar
year
• Monitor the proceedings of HB 951 and review the NCUC order
• Monitor status of the "South Point Switching Station" project
• Obtain senior management authorization, including the Duke Energy Chief Executive
Officer, to cease combustion of coal at the remaining units
Subsequent NOPP Annual Progress Reports will continue to be submitted by May 31 of each
year until all Allen Steam Station coal-fired units are retired. These reports will provide updated
retirement information for the remaining Allen Steam Station generating units, including
activities to facilitate retirement, and copies of any relevant documents.
Unit 5 VIP Technology Operation by December 31, 2028
If Allen Steam Station Unit 5 will combust coal beyond December 31, 2028, FGD wastewater
technologies will be installed to comply with the limitations at 40 CFR § 423.13(g)(3)(i) as stated
in the "Steam Electric Reconsideration Rule" which was effective on December 14, 2020. The
treatment technology to be installed will incorporate membrane filtration and/or a zero discharge
of FGD wastewater to achieve compliance with the VIP limitations.
As the final Unit 5 retirement date has not received final approvals as of the date of this annual
status report, a general timeline to achieve compliance with the VIP limitations is as follows:
Evaluate by December 31, 2024 if Allen Steam Station Unit 5 will continue to combust
coal for electrical generation beyond December 31, 2028.
Monitor the development of any relevant wastewater treatment technologies through
December 31, 2024
Design, construct, and achieve operation of a VIP compliant system by December 31,
2028, as appropriate.
The opportunity to transfer to the VIP option is necessary as the iRP is a plan and does not
necessarily constitute a firm commitment to retire a generation unit. Based on our experience
with installation of other FGD wastewater treatment systems, we believe that four years will be
necessary to design and construct wastewater treatment system for compliance with the VIP
option. Therefore, Duke Energy will likely determine that a transfer to the VIP option is required
several months prior to the regulatory December 31, 2025 date.
Please contact Robert Wylie (robert.wylie@duke-energy.com) if you have any questions
regarding this NOPP Annual Progress Report.
Sincerely,
Jeffrey D. Flanagan
General Manager III —Allen Steam Station
Attachments: 1. The United States District Court for the Middle District of North Carolina, Civil
Action No.. 1.00 cv 1262 (excerpt)
2. February 24, 2022 SEC Form 10-K (excerpt)
3. Carolinas Carbon Plan Amended Petition Filing, January 31, 2024 (excerpt)
cc: Shannon Langley
Robert Wylie
Cynthia Winston
Kim McDaniel
Michael Smallwood
Matthew Hanchey
Paul Fisk
Jeffrey Flanagan
Dan Donochod
Ben Smith
Allen Steam Station — 2024 NOPP Annual Status Update
Attachment 1
The United States District Court for the Middle District of North
Carolina, Civil Action No.: 1.00 cv 1262 (excerpt)
THE UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF NORTH CAROLINA
UNITED STATES OF AMERICA,
)
Plaintiff, )
)
ENVIRONMENTAL DEFENSE, )
NORTH CAROLINA SIERRA CLUB, AND
NORTH CAROLINA PUBLIC INTEREST )
RESEARCH GROUP )
Plaintiff -Intervenors,
V.
DUKE ENERGY CORPORATION, )
Defendant. )
CONSENT DECREE
RECEIVED
JUN 03 2-0Z4
NCDEO/DWR/NPDES
Civil Action No.: 1:00 cv 1262
anci Mary equipment, including pollution control equipment and systems necessary for production
of electricity. An electric steam generating station may be comprised of one or more Units.
46. "Unit Operating Day" means any Day on which a Unit fires Fossil Fuel.
47. "Working Day" means a day other than a Saturday, Sunday, or Federal Holiday.
In computing any period of time under this Consent Decree, where the last day would fall on a
Saturday, Sunday, or Federal Holiday, the period shall run until the close of business on the next
Working Day.
IV. RETIREMENT OF PLANT MODERNIZATION PROGRAM UNITS
48. Defendant has already ceased operations at and permanently shut down Buck Unit
3, Buck Unit 4, Buck Unit 5, Cliffside Unit 1, Cliffside Unit 2, Cliffside Unit 3, Cliffside Unit 4,
Dan River Unit 3, Riverbend Unit 4, Riverbend Unit 6, and Riverbend Unit 7. Upon entry of this
Consent Decree, the permanent Retirement of these units shall also become an enforceable
obligation under this Consent Decree.
49. By no later than December 31, 2024, Defendant shall permanently Retire Allen
Unit 1 and Allen Unit 2.
V. INTERIM NO,, EMISSION REDUCTIONS AND CONTROLS
A. Operation and Performance NO= Requirements at Allen Units 1 and 2
50. Commencing no later than 120 Days after the Date of Entry, and continuing until
the Unit is Retired, Defendant shall Continuously Operate the existing SNCR at Allen Unit 1.
Commencing no later than 485 Days after the Date of Entry, and continuing until the Unit is
Retired, Defendant shall achieve and maintain a 365-Day Rolling Average NOx Emission Rate of
no greater than 0.2501b/mmBTU.
12
e. Defendant must be and remain in full compliance with the provisions of this
Consent Decree establishing performance, operational, and control technology
requirements established by this Consent Decree including, but not limited to, (a)
the Interim NOx Emission Reductions and Controls specified in Section V of this
Consent Decree, (b) the Interim S02 Emission Reductions and Controls specified
in Section VI of this Consent Decree, (c) requirements pertaining to the Surrender
of S02 and NOx Allowances, and (d) the Retirement of Allen Units 1, 2, and 3 as
required under this Consent Decree.
68. Nothing in this Consent Decree is intended to preclude the emission reductions
generated under this Consent Decree from being considered by the applicable state regulatory
agency or EPA for the purpose of attainment demonstrations submitted pursuant to § 110 of the
Act, 42 U.S.C. § 7410, or in determining impacts on National Ambient Air Quality Standards,
PSD increment, or air quality related values, including visibility, in a Class I area.
IX. ADDITIONAL INJUNCTIVE RELIEF
69. By no later than Pegember 31, 2024 Defendant shall permanently Retire Allen
70. Defendant shall implement the additional Environmental Mitigation Projects
("Projects") described in Appendix A to this Consent Decree in compliance with the approved
plans and schedules for such Projects and other terms of this Consent Decree. In implementing
the Projects, Defendant shall spend no less than $4,400,000 in Project Dollars. Defendant shall
19
Allen Steam Station — 2024 NOR Annual Status Update
Attachment 2
February 24, 2022 SEC Form 10-K (excerpt)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
x� ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2021 or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to __
Commission Registrant, State of Incorporation or Organization, Address of Principal IRS Employer
file number Executive Offices and Telephone Number Identification No.
V DUKE
ENERGY.
1-32853 DUKE ENERGY CORPORATION 20-2777218
(a Delaware corporation)
526 South Church Street
Charlotte, North Carolina 28202-1803
704-382-3853
1-4928 DUKE ENERGY CAROLINAS, LLC 56-0205520
(a North Carolina limited liability company)
526 South Church Street
Charlotte, North Carolina 28202-1803
704-382-3853
1-15929 PROGRESS ENERGY, INC. 56-2155481
(a North Carolina corporation)
410 South Wilmington Street
Raleigh, North Carolina 27601-1748
704-382-3853
1-3382 DUKE ENERGY PROGRESS, LLC 56-0165465
(a North Carolina limited liability company)
410 South Wilmington Street
Raleigh, North Carolina 27601-1748
704-382-3853
1-3274 DUKE ENERGY FLORIDA, LLC 59-0247770
(a Florida limited liability company)
299 First Avenue North
St. Petersburg, Florida 33701
704-382-3853
1-1232 DUKE ENERGY OHIO, INC. 31-0240030
(an Ohio corporation)
139 East Fourth Street
Cincinnati, Ohio 45202
704-382-3853
1-3543 DUKE ENERGY INDIANA, LLC 35-0594457
(an Indiana limited liability company)
1000 East Main Street
Plainfield, Indiana 46168
704-382-3853
1-6196 PIEDMONT NATURAL GAS COMPANY, INC. 56-0556998
(a North Carolina corporation)
4720 Piedmont Row Drive
Charlotte, North Carolina 28210
704-364-3120
FINANCIAL STA111:111111WI = REGULATORY
Potential Coal Plant Retirements
The Subsidiary Registrants periodically file integrated resource plans (IRPs) with their state regulatory commissions. The IRPs provide a view of
forecasted energy needs over a long term (10 to 20 years) and options being considered to meet those needs. IRPs filed by the Subsidiary
Registrants included planning assumptions to potentially retire certain coal-fired generating facilities in North Carolina and Indiana earlier than
their current estimated useful lives. Duke Energy continues to evaluate the potential need to retire these coal-fired generating facilities earlier
than the current estimated useful lives and plans to seek regulatory recovery for amounts that would not be otherwise recovered when any of
these assets are retired.
The We below contains the net carrying value of generating facilities planned for retirement or included in recent IRPs as evaluated for potential
retirement. Dollar amounts in the table below are included in Net property, plant and equipment on the Consolidated Balance Sheets as of
December 31, 2021, and exclude capitalized asset retirement costs.
Capacity
(in MW)
Remaining Net
Book Value
(in millions)
Duke Energy Carolinas
Aller Steam Station Unit 1
167
$ 12
Allen Steam Station Unit 5"'
259
277
Cliffside Unit 5'"i
546
365
Duke Energy Progress a
Mayo Unit 1cn
713
631
Roxboro Units 3 ¢,... -
1,409
457
Duke Energy Florida
Crystal River Units 4-5t01
1,442
1,850
Duke Energy Indiana,"
Gibson Units 15{0I
2,845
1,829
Cayuga Units 1-2' 1,005 696
Total Duke Energy 8,386 $ 5,917
a) As part of the 2015 resolution of a lawsuit W» olvir-A alleged New Source Review violations, Duke Energy Carolinas must retire Allen
Steam Station units 1 thfugh 3 by December 31. 2024 The long-term energy options considered in the IRP could result in retirement
of these units earlier than their current estimated useful lives. Unit 3 with a capacity of 270 MW and a net book value of $26 million of
December 31. 2020 was retired in March 2021, and unit 2 with a capacity of 167 MW and a net book value of $44 million at December
31, 2020. was retired in December 2021.
(b) These units were included in the IRP filed by Duke Energy Carolinas and Duke Energy Progress in North Carolina and South Carolina
on September 1, 2020. The long-term energy options considered in the IRP could result in retirement of these units earlier than their
current estimated useful lives. In 2019, Duke Energy Carolinas and Duke Energy Progress filed North Carolina rate cases that included
depreciation studies that accelerate end -of -life dates for these plants. The NCUC issued orders in the 2019 rate cases of Duke Energy
Carolinas and Duke Energy Progress on March 31, 2021, and April 16. 2021, respectively, in which the proposals to shorten the
remaining depreciable lives of these units were denied, while indicating the IRP proceeding was the appropriate proceeding for the
review of generating plant retirements. Allen Unit 4 with a oVacity of 267 MW and a net book value of $170 rntlgon at December 31,
,,202tl, was retired in December 2021.
(c) On January 14, 2021, Duke Energy Florida filed the 2021 Settlement with the FPSC, which proposed depreciation rates reflecting
retirement dates for Duke Energy Florida's last two coal-fired generating facilities, Crystal River Units 4-5, eight years ahead of
schedule in 2034 rather than in 2042, The FPSC approved the 2021 Settlement on May 4, 2021.
(d) Gallagher Units 2 and 4 with a total capacity of 280 MW and a total net book value of 5102 million at December 31. 2020, were retired
on June 1, 2021.
(e) The rate case filed July 2, 2019, included proposed depreciation rates reflecting retirement dates from 2026 to 2038. The depreciation
rates reflecting these updated retirement dates were approved by the IURC as par'. of the rate case order issued on June 29, 2020.
4. COMMITMENTS AND CONTINGENCIES
INSURANCE
General Insurance
The Duke Energy Registrants have insurance and reinsurance coverage either directly or through indemnification from Duke Energy's captive
insurance company, Bison, and its affiliates, consistent with companies engaged in similar commercial operations with similar type properties.
The Duke Energy Registrants' coverage includes (i) commercial general liability coverage for liabilities ansing to third parties for bodily injury and
property damage; (ii) workers' compensation; (iii) automobile liability coverage; and (iv) property coverage for all real and personal property
damage. Real and personal property damage coverage excludes electric transmission and distribution lines, but includes damages arising from
boiler and machinery breakdowns, earthquakes, flood damage and extra expense, but not outage or replacement power coverage. All coverage
is subject to certain deductibles or retentions, sublimits, exclusions, terms and conditions common for companies with similar types of operations.
The Duke Energy Registrants self -insure their electric transmission and distribution lines against loss due to storm damage and other natural
disasters. As discussed further in Note 3, Duke Energy Florida maintains a storm damage reserve and has a regulatory mechanism to recover
the cost of named storms on an expedited basis.
The cost of the Duke Energy Registrants' coverage can fluctuate from year to year reflecting claims history and conditions of the insurance and
reinsurance markets.
154
Allen Steam Station — 2024 NOPP Annual Status Update
Attachment 3
Carolinas Carbon Plan Amended Petition Filing, January 31, 2024
(excerpt)
IM
Execution Plan
Highlights
+ The Execution Plan represents a deliberate evolution of short-term action planning in
previous resource plans, providing near -term and intermediate -term actions across major
aspects of the Carolinas Resource Plan: existing supply-side resources, new supply-side
resources, transmission system planning, Grid Edge and customer programs.
• The Execution Plan is an integrated plan across all resources of the Companies'
interconnected electric systems that meets long-term planning objectives and facilitates
an orderly and risk -balanced energy transition — exiting from coal-fired generation and
ensuring equally reliable replacement resources.
• The Near -Term Actions Plan represents reasonable and prudent steps during the near -
term 2023-2026 timeframe that are generally consistent with the Carolinas Resource
Plan's Core Portfolio P3 Base to develop and procure the resources needed to advance
critical aspects of the Companies' orderly energy transition.
• Executing resource plan activities in a changing energy landscape requires monitoring
risks and signposts to "check and adjust" plans as conditions change and as opportunities
arise.
Successful execution of the Carolinas Resource Plan (the `Plan" or "the Resource Plan") will require
prudent and intentional planning and timely regulatory approvals to deliver the resource additions,
retirements and system transformation needed to ensure that reliability is maintained or improved. The
next 10 to 15 years is a critical execution phase in Duke Energy Carolinas, LLC's ("DEC") and Duke
Energy Progress, LLC's ("DEP" and together with DEC, the "Companies") orderly energy transition as
the Companies plan for significant load growth, execute the retirement of 8,400 megawatts (" MW") of
Carolinas Resource Plan
`h.A'-'E":: Ct I V E D
.JUN 43 ".
Transmission System Planning and Grid Transformation
I�� F,Q,RY\ /NPDES
Critical enabling transmission assumptions are integrated into this Plan to f c it e e upp y-side
additions presented in the Near -Term Actions Plan. Further details on transmission execution planning
are presented below in the detailed Execution Plan section and Appendix L (Transmission System
Planning and Grid Transformation).
Grid Edge and Customer Programs
Grid Edge and customer programs will continue to advance EE and demand -side options that allow
for overall demand reduction and demand optimization, ramping up forecasted contributions growth
rate through the 15-year Base Planning Period (see details in Chapter 2) — helping to shrink the
overall challenge of the energy transition. Details on those activities that occur through other
stakeholder and regulatory proceedings are found in Appendix H.
Merger of DEC and DEP
The Companies plan to initiate regulatory proceedings in the near term to merge DEC and DEP, which
will consolidate the Companies' system operations functions, to facilitate a more cost-effective and
efficient energy transition for customers. Additional detail for the merger of DEC and DEP can be found
later in this Chapter.
Detailed Execution Plans: Existing Supply -Side Resources
The detailed Execution Plans in this section outline the critical and reasonable steps needed in the
near term to move the energy transition forward in an orderly way and also identifies further actions
required over the intermediate term to advance longer lead-time resources and breakthrough
technologies, such as SMRs, that are planned to achieve commercial operation in the mid-2030s.
The location of future solar, onshore wind. SPS and even advanced nuclear assets (whether DEC or
DEP) will be heavily dependent on future evaluation criteria, bids, ability to permit and other factors
not yet fully known. Therefore, the tables below are combined DEC and DEP, noting that locations will
be refined through the execution phase.
Retiring Existing Coal
Planning for Coal Emit Retirements in the Generation Transition
Reducing risk for customers through an orderly energy transition requires careful planning and diligent,
yet flexible, execution of continued retirement of the Companies' remaining coal units across North
Carolina, which have provided reliable service to the Companies' customers in both states for
decades. As discussed in Chapter 3, all portfolios result in a full exit from coal -fueled generation by
2035 (retiring over 8,400 MW of coal capacity). Executing on these coal unit retirements must be
coordinated with the development of replacement resources, their fuel supply, where applicable, and
Carolinas Resource Plan 12
Chapter 4 1 Execution Plan
transmission system improvements to maintain resource adequacy and reliability for customers. The
Companies will also actively evaluate opportunities to repurpose infrastructure and add new
replacement generation and energy storage resources at retiring coal sites, where cost-effective to do
so.
In the near -term, existing Allen 1 & 5 coal units are planned to retire by December 31, 2024 pending
internal approvals, To preserve system stability, it is paramount that the Companies have adequate
dispatchable generation in place prior to coal retirements to ensure system capacity and reliability.
Lincoln Unit 17, the first advanced class CT with a capacity exceeding 400 MW, will become a
Company asset on January 1, 2024 pending NCUC approval of DEC's request to amend its existing
CPCN for the unit.
In the near term, the Companies will continue to plan their intermediate- and longer -term coal unit
retirement strategy, including performing necessary transmission evaluations, as outlined in Appendix
L, to identify any necessary system improvements that are needed to allow coal unit retirements while
ensuring bulk power system reliability is maintained. The Companies will also continue to monitor the
changing economics of coal including coal supply and transportation constraints, the evolving impacts
on coal unit commitment and dispatch resulting from these constraints, impacts of increased policies
and regulations and the implications for the Companies' coal facilities as detailed in Appendix F (Coal
Retirement Analysis).
Table 4-3 below describes the Companies' near -term and intermediate -term Execution Plan for coal
retirements. Additional information on how coal retirements were evaluated in Plan modelling is
provided in Appendix C (Quantitative Analysis) and Appendix F. Dates are generally aligned with
recommended Core Portfolio P3 Base and it should be noted that most retirement dates are dependent
upon successfully executing replacement generation plans. Therefore, it should be expected that
retirement dates may be adjusted to optimize execution planning (construction synergies, GRR use,
gas capacities, transmission timing, etc.).
Carolinas Resource Plan 13
Chapter 4 1 Execution Plan
Table 4-3: Execution Plan — Coal Retirements
Near -Term Actions (2023-2026)
• Retire Allen 1 & 5 units by December 31, 2024 assuming approvals gained and
2024 permission granted to take care, custody, and control of Lincoln 17 on January
1, 2024.
Intermediate-Terin Actions (2027-2032)
• Retire Roxboro Units 1 & 2 and Marshall 1 & 2 after their respective in-flight
Z028-2029 hydrogen -enabled natural gas assets are placed in-service at existing sites.
• Approximate BOY time frame for Cliffside 5 retirement pending equally reliable
2031 replacement resources exist to allow retirements.
• Approximate BOY time frame for Mayo retirement pending equally reliable
2031 replacement resources exist to allow retirements.
• Approximate BOY time frame for Marshall 3 & 4 retirements pending equally
2032, reliable replacement resources exist to allow retirements.
Expanding Flexibility of the Existing Gas Fleet
As coal units are retired and the integration of renewable resources increases, the flexibility of
dispatchable gas -fired resources is essential for maintaining system reliability in a least -cost manner.
Today, the Companies' gas -fired generation fleet consists of 55 CTs, nine CC units, and one combined
heat and power ("CHP") unit, having a combined total capacity of 11,891 MW. To increase the flexibility
of the existing gas -fired fleet, the Companies will need to equip a number of its CC/CT stations to
support more flexible operational capabilities, such as lower load operations, increased ramp rates,
and the ability to cycle more often to respond to increased variability in the output of renewable
resources. In fact, flexibility/uprate projects are currently being engineered for two existing CCs; H.F.
Lee and Smith Power Block 4.
In the near and intermediate terms, the Companies will complete the planning phase and implement
gas unit control upgrades and equipment changes, which will require regulatory approvals for
operational and air permit changes. In addition to increased flexibility, the proposed projects also
provide limited additional dispatchable capacities. See Table K-2 in Appendix K for details.
Table 4-4 below outlines the Companies' near -term and intermediate -term Execution Plan to increase
the flexibility of the existing gas fleet, and additional information on the existing CC fleet is provided in
Appendix K.
Carolinas Resource Plan 14