MISO: Clean Power Plan could halve coal burn
Argus combed through documents issued yesterday by MISO, finding that the grid operator expects coal generation to take a huge hit should the Clean Power Plan be implemented as expected. Gas would be the immediate benefactor, rising from about 20% of generation under a base case to as high as 47%.
While more than one analysis has shown the MISO grid is unlikely to face reliability issues under the CPP, the grid operator has estimated 14 GW of coal generation will likely be shuttered under the new rules.
Compliance costs could be as high as $8 billion annually, the ISO projected last year. But regional compliance options could drive down those costs. The Environmental Protection Agency is giving states some leeway in how they reach targets, and MISO’s analysis found regional compliance options save approximately $3 billion annually compared to state-by-state compliance.