Diversity Key to Fuel Mix Southern Company subsidiaries Alabama Power and Southern Power provide wholesale power to electric municipalities and cooperatives in Alabama. Almost 60 percent of Southern Company’s electricity comes from coal-fired power plants. Nuclear power, oil- and gas-fired power plants, and hydropower round out the mix. “The impact of rising energy prices on our economy underscores the importance of fuel diversity in ensuring a low-cost, reliable supply of electricity to our customers,” says Ted McCullough, Alabama Power senior vice president and senior production officer.
14 FEBRUARY 2012
So what keeps the lights on if not hydropower? The majority of electricity used in the state – more than 60 percent – is generated by burning natural gas and coal. Coal is the dominant fuel source, making up 40 percent of the mix, according to EIA data. Alabama’s electric cooperatives use a higher percentage of coal, relying on the fuel for roughly 53 percent of all generated power in 2009. But regulatory pressure on coal plant emissions may change that in coming decades. “Coal is an affordable and abundant fuel source, which helps keep Alabama’s electric rates below the national average,” says Alabama Rural Electric Association (AREA) CEO Fred Braswell. Electricity cost Alabama residential ratepayers about 7 percent less than the national average, according to EIA. “But as a result, we’re concerned about what seems to be an all-out effort to do away with coal-fired generation in this country.” State lawmakers support coal as an energy source, Braswell says, although
a recent string of federal regulations are targeting emissions from fossil fuel-fired power plants. The U.S. Environmental Protection Agency (EPA) is behind the regulations, and many states and power providers are concerned that some coal-fired plants would not be able to meet new standards under tight deadlines. Resulting plant closings – enough capacity to power more than 22 million homes, according to an Associated Press survey – could make electricity more costly and less reliable for consumers. “We need to learn to burn coal more cleanly, but it has to be done using technology that makes economic sense,” Braswell says. “This shouldn’t be an all-or-nothing type of project. We have to make improvements incrementally, in a reasonable way.” For power providers in the state, this means making plans for new generation resources years in advance. “A long-term, well-designed power supply plan is the foundation upon which we provide a reliable, affordable
www.alabamaliving.coop