Lamar Repowering Project Plant Studies

The Arkansas River Power Authority (ARPA) is currently re-evaluating its long-term options for the Lamar Repowering Project to determine how to best meet its members’ future energy needs. The boiler for the coal-fired power plant has not been able to comply with its air emissions guarantees, and the plant has been maintained off-line since late 2011. ARPA has been working with Babcock & Wilcox (B&W), the boiler manufacturer, to resolve issues related to the boiler’s inability to meet air emissions guarantees. However, B&W has refused to fund the installation of its proposed modifications to the boiler, and could not guarantee that those modifications would resolve the emissions issues. In February, ARPA filed a lawsuit for damages against B&W.

ARPA has commissioned studies with third-party experts regarding the economics of the facility given these recent developments. These studies have shown that the cost of making the proposed modifications to the plant, with no guarantee that they would bring the plant into full compliance, would result in higher rates for the ARPA members over the next several years. Furthermore, the proposed modifications would increase the operating costs for the plant, making the power produced from it more expensive and less competitive should the plant be placed back on-line in the future.

Final reports of the studies may be viewed in their entirety.

Decommissioning Study – Conceptual Opinion of Probable Decommissioning Cost – FINAL REPORT by HDR Engineering, Inc (May 2, 2014)
Economic Analysis Related to the Lamar Repowering Project – FINAL REPORT by JK Energy Consulting LLC (May 21, 2014)