Study: Martin Drake the least efficient coal plant in Colorado

Colorado Springs’ Martin Drake power plant is the least efficient coal plant in the state, according to a study conducted by the Applied Economic Clinic at Tufts University, but the plant has also seen its energy output drop significantly in the past decade.

The study, which was published on Nov. 30, also calls into question the transparency of Colorado Springs Utilities. The authors state that they filed multiple Colorado Open Records Act requests for information about the plant’s costs and output, but they were often stymied or delayed by CSU.

The Green Cities Coalition and Southeastern Colorado Renewable Energy Society commissioned the report by the AEC, which recommends the Martin Drake units 6 and 7 be decommissioned earlier than the city’s set deadline of Dec. 31, 2035. CSU is looking at possibly closing the units by 2025 or 2030.

One issue cited by the study was the lack of information regarding the full cost of operating the Drake plant. CSU said they couldn’t give full cost information because they didn’t want to tip off competitors to what the organization pays. But the study’s authors’ opinions are that because the residents of Colorado Springs own the utility, there should be more transparency than typical coal plants.

According to the study, the amount of electricity provided by the Drake plant to the Springs dropped 28 percent from 2007 to 2015. That’s important to note, the study says, because power plants in the U.S. typically operate their most expensive generators the least. The study says if CSU is operating its plants according to the “economic dispatch” principle, the Drake plant must be costlier than other generators owned by CSU.

The study says the reason Drake is more costly is because of its inefficiency. The average heat rate for a coal unit is 10.5 million British Thermal Units, or MMBtu, per megawatt-hour, or MWh. However, the Drake plant requires about 10 percent more fuel than a typical coal unit to generate the same amount of electricity, with the Drake’s heat rate of 11.53 MMBtu per MWh.

Another costly endeavor for CSU, the study claims, was the installation of scrubbers at the Drake plant. CSU underestimated the capital cost by about $44 million and ended up paying $174 million for the installation. The maintenance costs of the scrubbers add up to a little more than $1.8 million per year, according to the study, and the authors say earlier decommission would save on those operating and maintenance costs.

When CSU acquired full control of Front Range, a combined-cycle natural gas plant, in 2010, it benefited from low natural gas prices in recent years, according to the study. The study says natural gas has contributed more than the Drake plant to CSU’s energy needs. While the Drake plant’s energy output has been trending down since 2007, the Front Range’s output has been trending up significantly since natural gas prices fell in 2012.

The study also contends with transmission upgrades and possible energy generators from more natural gas to renewable resources. The authors also say the plant creates health hazards with its pollutants, which negatively affect the economically disadvantaged population nearby.

You can read the full study by clicking the link HERE.