Aluminium plant close up influences Big Rivers power plants sale

Big Rivers Electric is looking to sell two of its western Kentucky coal-fired power plants, Coleman and D B Wilson, representing nearly 900 MW of generating capacity, and plans to idle both baseload facilities next winter if it has no buyers or long-term power purchase agreements in hand by then, a Big Rivers spokesman said Tuesday.

With the impending loss of its two largest customers, aluminum smelters in Hawesville and Sebree owned by Century Aluminum, the Henderson, Kentucky-based generation and transmission co-op has no need for the output of the 444-MW Coleman plant and 443-MW D.B. Wilson plant to serve its predominantly rural load, Big Rivers spokesman Marty Littrel said.

Earlier this month, Big Rivers asked the Public Service Commission to allow Century to bypass the co-op and buy less expensive electricity from the wholesale power market for the Hawesville smelter. The electric market is fully regulated in Kentucky.

Century says it will shutter the 260,000 mt/year smelter on August 20 unless it is purchasing power from the market by then. On January 31, Century’s newly acquired 205,000 mt/year Sebree smelter will cease buying power from Big Rivers. Big Rivers is expected to ask state regulators for a similar wholesale market power arrangement for Sebree.

Together, the two smelters consume about 850 MW, or roughly 70% of Big Rivers’ total load.

If the two plants are sold or idled next year, Big Rivers will continue operating the 454-MW Green baseload coal plant, Littrel said.