HOUSTON, July 5 /PRNewswire-FirstCall/ -- Reliant Energy today
announced plans to install state-of-the-art emission control systems at two
Pennsylvania power plants, a major step in the company's strategy for
maximizing the long- term value of its power generation assets while
reducing air emissions. Reliant Energy has estimated it could spend up to
$625 million through 2011 on sulfur dioxide (SO2), nitrogen oxide (NOx),
and mercury controls at the company's power plants.
The plans announced today call for the installation of a wet flue gas
desulfurization system, or scrubber, at the company's Cheswick Generating
Station in Springdale, Pa., and for funding Reliant's portion of the
scrubber installation at the Keystone Generating Station near Indiana,
Pennsylvania. Reliant jointly owns the Keystone station with six other
entities and operates the facility on behalf of the owners.
Reliant estimates that its cost for the Cheswick scrubber and its
portion of the Keystone project will be approximately $350 million. The
scrubbers at both facilities are expected to begin commercial operation in
2009. These capital expenditures will be made over time with the majority
being incurred from 2007 to 2009.
Installation of scrubbers at these units will remove approximately 98
percent of SO2 from the stations' flue gases, reducing Reliant Energy's SO2
emissions by approximately 68,000 tons per year. The systems will also be
designed to maximize the removal of mercury.
"Reliant Energy is committed to caring for the environment and the
communities where we do business, and this decision is significant from
both perspectives," said Reliant Energy Chairman and Chief Executive
Officer Joel Staff. "Investing in scrubbers on these units will contribute
to improved air quality in Pennsylvania while improving the economic
viability of these units for years to come. Not only is it the right thing
to do for the environment, it makes good business sense."
In addition to the installation of scrubbers at the Cheswick and
Keystone plants, the strategy includes upgrades to the existing flue gas
desulfurization systems at Reliant's Elrama and Niles plants. These
upgrades will be completed this year and are expected to increase SO2
removal efficiency. Modifications to significantly reduce SO2 emissions
from Reliant Energy's Avon Lake facility are also being considered.
Reliant also continues to evaluate technologies that contribute to
reduced SO2 and NOx emissions. For SO2 control, the company is testing
switching to low-sulfur fuels, including Power River Basin coal. In
addition, Reliant is considering installation of selective non-catalytic
reduction (SNCR) systems for NOx reduction. These technologies hold promise
as a mechanism for cost effectively reducing emissions at smaller
facilities.
As part of this comprehensive plan for controlling emissions, Reliant
continues its work with third-parties to host testing and development of
new emission-control technologies, including advanced sorbents for mercury
control, lime slurry injection and new duct injection technology for SO2
control, and waste coal slurry reburn for NOx control.
Reliant Energy, Inc. (NYSE: RRI) based in Houston, Texas, provides
electricity and energy services to retail and wholesale customers in the
United States. In Texas, the company provides service to approximately 1.9
million retail electricity customers, including residential, small business
and commercial, industrial, governmental and institutional customers.
Reliant also serves commercial, industrial, governmental and institutional
customers in the PJM (Pennsylvania, New Jersey and Maryland) market.
The company is one of the largest independent power producers in the
nation with approximately 16,000 megawatts of power generation capacity
across the United States. These strategically located generating assets
utilize natural gas, fuel oil and coal. For more information, visit
http://www.reliant.com/corporate .
This news release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Act of 1934. Forward-looking statements are statements that
contain projections, estimates and assumptions about our revenues, income,
earnings and other financial items, our plans and objectives for the
future, future economic performance, or other projections or estimates
about our assumptions relating to these types of statements. These
statements usually relate to future events and anticipated revenues,
earnings, business strategies, competitive position or other aspects of our
operations or operating results. In many cases you can identify
forward-looking statements by terminology such as "anticipate," "estimate,"
"believe," "continue," "could," "intend," "may," "plan," "potential,"
"predict," "should," "will," "expect," "objective," "projection,"
"forecast," "goal," "guidance," "outlook", "effort", "target" and other
similar words. However, the absence of these words does not mean that the
statements are not forward-looking. We have based our forward-looking
statements on management's beliefs and assumptions based on information
available to management at the time the statements are made. Actual results
may differ materially from those expressed or implied by forward-looking
statements as a result of many factors or events, including legislative and
regulatory developments, the outcome of pending lawsuits, governmental
proceedings and investigations, the effects of competition, financial
market conditions, access to capital, the timing and extent of changes in
commodity prices and interest rates, weather conditions, changes in our
business plan and other factors we discuss in our other filings with the
Securities and Exchange Commission, including "Risk Factors" discussed in
our most recent Annual Report on Form 10-K, Item 1A. Each forward-looking
statement speaks only as of the date of the particular statement, and we
undertake no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
SOURCE Reliant Energy, Inc.
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Related links:
http://www.reliant.com/corporate
CONTACT:
media, Pat Hammond, +1-713-497-7723, or
investors, Dennis Barber, +1-713-497-3042, both of Reliant
Energy, Inc.
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