POWERGRAMS

Gadsden goes gas New, stringent regulations set through the Mercury and Air Toxics Standards (MATS) issued by the Environmental Protection Agency are forcing Gadsden Steam Plant to eliminate the use of coal by April 16. MATS is changing the way Plant Gadsden does business, said Operations Team Leader Terry Stowe. Outfitted in 1948 with the capability to burn either coal or natural gas, Plant Gadsden previously used whichever fuel was most economical, because those costs are passed on to customers. The ability to use either coal or gas provided the plant with competitive options, he said. "We've used coal for nearly 70 years," Stowe said. "We've been accustomed to using natural gas when the price is competitive, as determined by our Fleet Operations group. The way we do things is changing." The bulk of power produced by Plant Gadsden goes directly to the grid in service of residential customers. Since 1994, Plant Gadsden has supplied steam to the nearby Goodyear Tire and Rubber Plant, which is Plant Gadsden's major industrial customer. Plant Gadsden provides 60,000 pounds of steam an hour, on average, which converts to about 6 megawatts of electricity supplied daily to Goodyear, Compliance Specialist Justin Brown said. "Like all businesses, we're subject to the volatility of fuel prices, but Alabama Power remains committed to its customers in providing affordable and reliable electricity as well as the constant steam supply to Goodyear," Brown said. "We are hoping that using natural gas continues to be economical." Plant Gadsden has the capability to burn coal until the deadline, at which point the facility will cease burning coal and continue with natural gas only. Federal environmental regulations are affecting other company power- generating facilities: • Alabama Power is closing two smaller coal units at Plant Gorgas while installing a baghouse for additional pollution control on units 8, 9 and 10. • Two units at Plant Barry will cease using coal but remain available on a limited basis using natural gas. A third coal unit at Barry will begin using gas, but its capability will not be impacted as significantly as the other two units. • At Plant E.C. Gaston, units 1 through 4 will use only natural gas, while unit 5, which has a scrubber, will continue using coal. Additional environmental protection will be provided through unit 5, where a baghouse is under construction. • By April 16, 2016, Plant Greene County will use only natural gas for fuel. Environmental Affairs Vice President Matt Bowden said, "Alabama Power and Southern Company have been on the forefront of pollution controls for a very long time." Since 1996, for example, the company has reduced emissions of sulfur dioxide and nitrogen oxides by about 80 percent. During the past decade, Alabama Power has spent about $3 billion to meet federal environmental mandates and is spending another $1 billion to comply with new federal environmental regulations tied to air emissions. Further spending could be required to meet future federal environmental regulations tied to water, land and coal combustion byproducts. "We all want clean air and clean water, and we want to take a practical approach at the same time," Brown said. "We at Plant Gadsden and Alabama Power are going to do whatever it takes to safely provide clean, affordable and reliable power in compliance with federal mandates. We're a vital part of the economy in this region and we stand behind our commitment to all of our customers." By Donna Cope REGULATIONS 3 Assistant Plant Control Operator Scott Sasser opens natural gas manual isolation valve. Photo by Nik Layman N E W S T RI N G EN T FED ER A L S TA N DA R DS EL I M I N AT E COA L

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