Pirkey plant slated for closure despite local senator’s efforts

Closure activities for Pirkey Power Plant in Hallsville, Texas will continue soon, according to SWEPCO/ AEP spokeswoman.

The plant is scheduled to retire by the end of March.

Amanda B. Keeney, director of AEP communications told Journal-Sun staff that the decision to close the plant was announced in 2020. For the past three years, they have been working with employees and the surrounding community on the transition.

“All of the plant staff have either elected to retire or have found other jobs through these efforts, many within the AEP system,” Keeney said.

Keeney said the analysis that led to the decision to retire the Pirkey plant showed that avoiding compliance costs and higher ongoing operating and fuel costs would save customers an estimated $740 million to $1.2 billion.

“The ongoing operating costs and the high cost of lignite were the primary reasons for retiring the plant,” Keeney said. “Pirkey’s fuel costs have been rising for more than 15 years and were expected to remain higher than other similar SWEPCO plants.”

Keeney said SWEPCO and AEP continually evaluate how best to meet their customers’ energy needs “Pirkey Plant is scheduled to retire by the end of March,” Keeney said. “Southwest Power Pool (SPP), the regional grid operator, has been kept aware of the plant’s status throughout the process.”

Keeney said that for decades, SWEPCO has maintained a diverse generation portfolio to provide reliable and affordable power to customers.

“The recent and proposed additions of wind and solar resources will continue to maintain a competitive, diverse generation portfolio for our customers, lowering fuel costs, and reducing carbon emissions,” Keeney said. “SWEPCO’s current resource mix is 40% coal/ lignite, 39% natural gas and 21% renewables.”

“SWEPCO will continue its strategy of serving our 551,000 customers with a diverse generation fleet, including fossil-fueled generation and renewable generation,” she added.

An East Texas lawmaker testified about three weeks ago at the Public Utility Commission of Texas in an effort to halt the closure of the Plant.

Senator Bryan Hughes (R-Tyler) said closing the Harrison County plant would be a big mistake.

Hughes, who represents 15 counties in district one–including Cass County– said he testified before PUC in hopes of keeping the Henry W. Pirkey Power Plant running.

“I testified before the Public Utility Commission (PUC) to urge them to keep the Pirkey Power Plant open,” Hughes said. “This plant provides reliable and affordable electricity, as well as good jobs.”

“Closing it would be a terrible mistake,” he added.

AEP SWEPCO (American Electric Power/Southwestern Electric Power Company), announced in 2020 that the Pirkey Power Plant was slated for shutdown in 2023.

Earlier reports cited revised environmental regulations as the cause for retiring the plant.

SWEPCO’s Website, aep. com/environment/ccr/Pirkey, under the ‘Environmental and Social Justice’ tab– states that the U.S. Environmental Protection Agency (EPA) issued a 2015 rule addressing the handling, storage and disposal of coal combustion residuals, most often referred to as CCRs. CCRs are defined as the materials left behind after coal has been burned.

Pirkey Plant ash storage sites included in the monitoring program include four areas according to the SWEPCO website; the east bottom ash pond, the west bottom ash pond, the landfill, and the stack-out area.

Hughes contends that the closure of Pirkey Power Plant would mean a less reliable power grid for Texas and the loss of several good jobs for East Texans.

Bowie Cass issued a statement of support for Pirkey and Brian Hughes’ support.

“We want to thank Senator Bryan Hughes for working in the best interest of Texas consumers. Senator Hughes, along with several other members of the Texas Legislature, is working hard to keep reliable and dispatchable generation available right here in East Texas,” Bowie Cass representatives stated.

Hughes told Journal-Sun staff in a statement last week that climate change activists had pressured an out-of-state company to close the plant and he testified before PUC to shine a light on the issue.

“Shutting down the Pirkey Power Plant will cost us reliable power when we need it most,” Hughes said. “An out-of-state company made the decision to cut short the life of the plant under pressure from climate activists. We cannot stand idly by while jobs are lost and Texans lose an important source of dependable power.”

According to Hughes, the Hallsville plant has decades of useful life remaining.

“I have urged the commissioners to intervene to keep the plant operating and keep its energy flowing into our grid,” Hughes said.

AJ Goff, President and CEO of the East Texas Electric Cooperative commended the lawmaker’s efforts to keep the plant open.

“Early retirement of the Pirkey Power Plant will eliminate approximately 300 jobs in East Texas and threaten a reliable source of dispatchable energy for the region,” Goff said in a statement to Journal-Sun staff.

“We applaud Senator Hughes for testifying before the PUC and support his efforts to keep Pirkey open,” he added.