Utility Dive•9 days ago
DOE orders 446-MW Colorado coal unit to keep running
Key Takeaway
The DOE's high-cost intervention to keep a coal unit running underscores that grid reliability remains paramount, potentially overriding economic and environmental considerations in critical situations.
AI Summary
- •The DOE has ordered a 446-MW Colorado coal unit (Craig Unit 1) to continue operating for 90 days at an estimated cost of $21 million, despite requiring repairs and being offline.
- •This high-cost intervention ($233,333/day or ~$21/MWh for operation alone) signals acute grid reliability concerns in the region, which could lead to increased energy prices and capacity market volatility.
- •The direct regulatory order to keep a retiring or mothballed coal unit running highlights a strong policy emphasis on grid stability, potentially impacting future plant retirement schedules and the valuation of dispatchable generation assets.
Topics
capacity-marketemissionsfinancingpolicy