Economic Analysis of Duke Energy Florida's Crystal River Coal Plant
Sierra Club retained Synapse to evaluate the economics of Duke Energy Florida’s (DEF) Crystal River coal plant, and to evaluate the winter capacity contribution of solar on DEF’s system. Synapse prepared testimony showing that the economics of Crystal River are not favorable moving forward. This finding was especially true with increased environmental regulations that could require co-firing on gas or installation of carbon capture and sequestration technology at the plant. Synapse found that DEF had not performed any analysis to justify its assumption that continued reliance on the coal plant was in the best interest of ratepayers, and recommended that the Company perform its own study to evaluate the economics of early retirement of Crystal River.
Additionally, Synapse found that DEF had done no analysis to support its assumption that solar generators provide zero capacity contribution in the winter. Synapse recommended that DEF conduct a study estimating the winter capacity contribution value of solar.
In a Settlement Agreement to DEF’s 2024 Rate Case, DEF agreed to conduct both studies.