A non-profit is recommending a Kentucky coal plant retire sooner than planned.
The Elmer Smith plant in Owensboro is old — it initially went into service in 1964. And over the past few years, it’s become a target for environmental groups, who point to the plant’s age and emissions, saying the upgrades it would take to comply with upcoming pollution regulations make it uneconomical to keep burning coal there.
At the request of the Sierra Club, the non-profit Institute for Energy Economics and Financial Analysis studied several documents from Owensboro Municipal Utilities, which owns and operates the Elmer Smith plant. IEEFA concluded that retiring the plant’s two units sooner rather than later would be the least-cost option for ratepayers, and urged the utility to consider replacing the capacity with renewable energy.
Among the problems IEEFA Director of Resource Planning David Schissel flagged in his analysis of Elmer Smith was that the area’s demand for electricity has remained relatively flat since 2004. So since then, the plant has been producing more power than it needs to supply its ratepayers. OMU sells the excess power on the wholesale market, but for only a fraction of its cost.