The Economics of the Ash Bin

Really big ash bins. A pretty good post at Bacon's Rebellion about the economic of coal ash disposal, with reference to particular local power plants.

The debate over coal ash hasn’t gone away — it’s just morphed. For much of the year, public attention focused on how to de-water millions of tons of coal-combustion residue that utilities and industrial companies accumulated over decades in large retaining ponds. Discussion centered on how to ensure that the water released into rivers and streams did no harm to aquatic life and human health. Now attention is turning to what to do with coal ash once it’s dry.

The October 17 deadline is fast approaching for industrial-scale coal burners to file written closure plans for their coal ash ponds. Each company must choose whether to go with the “closure-in-place” option or the removal option. Closure in place could spare ratepayers billions of dollars in added costs, but “removal” could reduce long-term health risks from potentially toxic metals that could leach from the coal ash pits into the groundwater and, from there, into rivers and streams.

Here in Virginia, Dominion Virginia Power has laid out plans to consolidate coal ash on-site at its power stations, and to cap the material with an impermeable plastic lining and vegetation to prevent rainwater from percolating through. Environmentalists say that won’t prevent groundwater from migrating through the ponds and picking up heavy metals in the process. As evidence, they point to water quality tests that show elevated levels of metals appearing in locations outside Dominion’s facilities. Clouding the matter, however, the state Department of Environmental Quality says that its tests show contradictory results.

In a recent conference call with media, Jim Roewer, executive director of the Utility Solid Waste Activities Group, emphasized the high cost of transporting the ash to lined landfills, as environmental groups have called for. In an informal survey early in the regulatory process, he said, four out of five utilities said they expected to go with the closure-in-place option. That preference reflected the economics of coal ash disposal at their particular locations. A June Tennessee Valley Authority study concludes that it would cost about $280 million to close its six coal-ash sites using closure-in-place but $2.7 billion using the cheapest combination of truck and train — almost ten times as much.

Dominion has said that the tab for the removal option could run the clean-up cost to as much as $3 billion. Virginia environmental groups have pointed to decisions by Duke Energy, Santee Cooper, and SG&E in the Carolinas to transport the coal ash to landfills, arguing that Virginia citizens should have no less protection from exposure to toxic levels of chemicals than those of North and South Carolina.

Many environmentalist simply want to punish the power companies as much as possible. If the cost to haul away the ash for very little or no added environmental benefit, they will try to force that action, for no more reason than spite.