Should AE Retire Fayette Coal Plant ... This Decade?

Here are some of the arguments that have been made for and against retiring (or selling) the Fayette Power Project, though some (marked with *) are relevant more specifically to plans that have been proposed to retire the plant sooner rather than later. Note: Supporters of retiring Fayette are not necessarily the same group as the supporters of selling it, though there may be overlap; the same can be said of the opponents.

Should AE Retire FPP by 2020?

Supporters Say:

• Protection from costs of regulation on CO2 and other pollutants

• Savings on fuel cost

• Significantly smaller carbon footprint

• Fewer pollutants (including zero mercury and sulfur dioxide emissions)

• Healthier Texans and decreased spending on pollution-related health problems

• Leaner operation-and-maintenance costs (no more upkeep of old technology)

• More local green jobs/lower bills due to increased reliance on weatherization, rooftop solar, etc.

• Austin keeps energy leadership cred

• Greater potential to buy power from market more cheaply than AE can produce it*

Opponents Say:

• More dependence on variable sources of power and market prices

• Overreliance on assumptions about carbon legislation that may not pass

• Higher capital investments required up front

• Potential for the Electric Reliability Council of Texas – or other legal/regulatory unknowns – to prevent AE from retiring the plant*

• Not enough transmission to carry wind power from West Texas if build-out goes more slowly than expected

• Potential loss of opportunity to recoup costs from recent upgrades (e.g., scrubbers)*

• Overambitious reliance on private investment in rooftop solar, energy efficiency, etc.*

• Not necessarily enough solar panels to meet demand*

Should AE Sell FPP?

Supporters Say:

• More money to spend on transition to renewables

• Potential to supplant new construction

Opponents Say:

• Lost opportunity to reduce CO2 and other pollutants

• Unacceptable health risks

• Potential for AE to have to purchase Fayette's power at a higher price