Natural Gas Intelligence
Corona Power Plans Fuel Switch in Wake of EPA Rules

Friday, December 30, 2011

New Environmental Protection Agency (EPA) rules have prompted Corona Power LLC to switch most of the coal-burning generation at its 400 MW Sunbury generation facility in Shamokin Dam, PA, to gas-fired generation.

Gas prices are likely to increase in response to the EPA rules, but it is less certain how high prices will go, according to one BNP Paribas commodity strategist (see Daily GPI, Sept. 26). An analysis by Bentek Energy LLC said EPA's ruling could lead to a 35% increase (7 Bcf/d) in gas demand from power by 2014 and would force 50 GW of coal-fired power units to either be retired or converted to burn natural gas (see Daily GPI, Aug. 25).

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