AES Indiana — Investor Presentation (June 2022)
19 slides from AES Indiana's investor presentation, Jun 27, 2022
Slide 1: Transitioning AES Indiana Beyond Coal to Clean Renewable Energy
Transitioning AES Indiana Beyond Coal to Clean Renewable Energy June 27, 2022
Slide 2: Petersburg is dirty, expensive and unreliable and must be retired within the decade
● Petersburg is dirty, expensive and unreliable and must be retired within the decade ● Switching to gas is irresponsibly risky ● AES Indiana has been too slow to transition to renewable energy and must plan to do so now
Slide 3: Petersburg is dirty, expensive and unreliable and must be retired within the decade
Petersburg is dirty, expensive and unreliable and must be retired within the decade
Slide 4: Petersburg is a Super Polluter
Petersburg is a Super Polluter ● Petersburg is one of 22 so-called Super Polluter coal plants that release the most toxic pollution and greenhouse gases in the U.S ● In 2021, Petersburg released 9 million tons of CO2; 11 million pounds of NOx and 12 million pounds of SO2. ● AES was forced to pay a $
Slide 5: Petersburg is also a serious water pollution source
Petersburg is also a serious water pollution source ● Petersburg continues to generate more than a million tons of coal ash per year that is contaminating the White River. ● Petersburg is the worst water polluter in Indiana, has violated its water permit for years, and continues to do so.
Slide 6: AES regularly operates Petersburg uneconomically
AES regularly operates Petersburg uneconomically ● AES regularly “self-commits” Petersburg, assigning it a “must-run” commitment status even when its operating costs exceed market revenues. ● During many hours, AES customers would save money if the company didn’t forced its Petersburg to stay online
Slide 7: AES faced many unplanned outages at its fossil plants
AES faced many unplanned outages at its fossil plants ● All remaining Petersburg coal-burning units faced an unplanned outage (ie. broke down) between May and July 2021. ● When Petersburg wasn’t available to serve customers, AES bought energy from the market. Company then asked regulators to charge
Slide 8: Resource diversity will make the grid more resilient
Resource diversity will make the grid more resilient ● Coal and gas power plants are less reliable than many grid operators assume they will be when evaluating resource adequacy. They tend to fail more often in extreme heat and cold, just when customers need power the most. ● The continued burning o
Slide 9: Switching to gas at Petersburg is irresponsibly risky
Switching to gas at Petersburg is irresponsibly risky
Slide 10: AES relies heavily on gas and coal
AES relies heavily on gas and coal ● As of its 2019 IRP, AES relied on coal and gas-fired power plants for 47 and 48 percent respectively of its generation capacity. That over 95 percent of its generation capacity from fossil resources. ● AES has invested negligibly in solar PV and wind to date. ● I
Slide 11: Petersburg will be inefficient operating on gas
Petersburg will be inefficient operating on gas ● The converted Petersburg units will be old (35 - 45 years old) and inefficient even when converted to operate on gas. The units heat rate will be worse operating on gas than when they were operating on coal. ● They will still be costly to maintain, e
Slide 12: Switching to gas at Petersburg puts ratepayers at risk
Switching to gas at Petersburg puts ratepayers at risk ● Gas is subject to price volatility, and we’re seeing exorbitant gas prices in the market now. ● Replacing Petersburg with another fossil fuel marked by price volatility in the midst of a climate crisis is not the solution. Natural gas prices($
Slide 13: AES Indiana has been too slow to transition to renewable energy and must plan to do so now
AES Indiana has been too slow to transition to renewable energy and must plan to do so now
Slide 14: AES's has been slow to transition to renewables
AES’s has been slow to transition to renewables ● AES 2019 IRP was a disappointment to many stakeholders, including the Indianapolis Mayor’s Office when it was filed in December 2019. ● Mayor’s Office submitted comments emphasizing the City’s support for AES’s Portolio which retired all four units o
Slide 15: AES should replace the 1000 MW of power from Petersburg Units 3-4 with a Clean Energy Portfolio
AES should replace the 1000 MW of power from Petersburg Units 3-4 with a Clean Energy Portfolio of solar, wind, energy efficiency, battery storage, and demand response. AES should not delay, and should begin acting now to procure renewables for the future.
Slide 16: That's a plan that meets the challenges of this moment
That’s a plan that meets the challenges of this moment and the privilege of serving the electricity demands of our capital city. That is the affordable solution for customers; It does not carry the risk of gas with its price volatility and climate impacts; and it allows the City of Indianapolis and
Slide 17: Wendy Bredhold, Sierra Club Beyond Coal Campaign
Wendy Bredhold Senior Campaign Representative Sierra Club Beyond Coal Campaign 812-604-1723 wendy.bredhold@sierraclub.org
Slide 18: Reliability
Reliability Fossil fuel advocates like to blame renewable energy for rolling blackouts in California, but that’s not true. The state’s grid operator published a report1 finding that the blackouts were actually the result of climate change-induced heat waves, outdated rules for resource planning targ
Slide 19: Reliability
Reliability Similarly, Texas’s governor and others blamed the deadly failure of the Texas grid on renewable energy. While politically convenient, perhaps, this was again a lie. The fact is that despite warnings, Texas was not prepared for the record cold that froze gas pipelines and coal piles and f