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AES

Revision as of 16:15, 8 December 2010 by Cshearer19 (talk | contribs) (SW: →‎Elementary students protest AES Shady Point fly ash: - add section)

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AES Corporation
Type Public (NYSE: AES)
Headquarters 4300 Wilson Blvd., 11th Fl.
Arlington, VA 22203
Area served U.S.: IN
Int'l: Brazil, Ukraine, El Salvador, Cameroon, Kazakhstan, Argentina, Dominican Republic
Key people Paul Hanrahan, CEO
Industry Electric Producer and Utility
Products Electricity
Revenue $13.59 (FY 2007)[1]
Net income Loss of $95 million[1]
Employees 28,000
Subsidiaries Indianapolis Power & Light
AES Eletropaulo
Website AES.com

AES has interests in 123 power projects around the world.

Contents

AES and Corporate Social Responsibility

In June 2009, SOMO (the Centre for Research on Multinational Corporations) published a research report that investigated, among other things, AES’ Corporate Social Responsibility (CSR) policies and practices. The report concluded that “[AES] seems to be less motivated by CSR concerns or issues than by the hard business imperative of profit”. [2]

Coal lobbying

AES is a member of the American Coal Ash Association (ACAA), an umbrella lobbying group for all coal ash interests that includes major coal burners Duke Energy, Southern Company and American Electric Power as well as dozens of other companies. The group argues that the so-called "beneficial-use industry" would be eliminated if a "hazardous" designation was given for coal ash waste.[3]

ACAA was set up by a front group called Citizens for Recycling First, which argues that using toxic coal ash as fill in other products is safe, despite evidence to the contrary.[3]

Compensation

In May 2007, Forbes listed AES CEO Paul Hanrahan as receiving $10.3 million in total compensation for the previous fiscal year, with a four-year total compensation of $16.85 million. He ranked 9th on the list of CEOs in the Utilities industry, and 170th out of all CEOs in the United States.[4]

Power portfolio

Out of its total 13,122 MW of U.S. electric generating capacity (1.23% of the U.S. total), AES gets 52.2% from natural gas, 41.2% from coal, 3.3% from oil, 2.6% from wind, and 0.6% from wood. AES has power plants in California, Connecticut, Hawaii, Indiana, Maryland, New Jersey, New York, Oklahoma, Oregon, Pennsylvania, Texas, and Wyoming - as well as in 28 countries around the world.[5]

New York power plants

In 1999, AES purchased six power plants in New York (including the Somerset station) from NGE Generation, Inc. for $953 million.[6] The other stations included in the deal were AES Westover, AES Cayuga, AES Greenidge, AES Hickling, and AES Jennison[6]

Coal Gasification

In 2007, AES worked with Dow Chemical Co., Citi Sustainable Development Investments, and Suncor Energy, Inc. to put together a $100 million investment for GreatPoint Energy, a coal gasification company based in Cambridge, MA. [7] The investment was used to create a pilot gasification plant called the Mayflower Clean Energy Center, located at Dominion's Brayton Point station in Somerset, Massachusetts. This was the largest "green tech" investment of 2007, and "one of the industry's biggest venture capital rounds ever."[8][9]

Existing coal-fired power plants

AES had 29 coal-fired generating stations in 2005, with 5,515 MW of capacity. Here is a list of AES's coal power plants with capacity over 100 MW:[5][10][11]

Plant Name State County Year(s) Built Capacity 2007 CO2 Emissions 2006 SO2 Emissions
Petersburg IN Pike 1967, 1969, 1977, 1986 1873 MW 12,500,000 tons 28,985 tons
Harding Street IN Marion 1958, 1961, 1973 698 MW 3,966,000 tons 46,346 tons
Somerset NY Niagara 1984 655 MW 5,395,000 tons 2,573 tons
Shady Point OK Leflore 1990 350 MW 2,576,000 tons N/A
Cayuga NY Tompkins 1955 323 MW 2,278,000 tons 4,360 tons
Eagle Valley IN Morgan 1951, 1953, 1956 302 MW 1,494,000 tons N/A
Warrior Run MD Allegany 1999 229 MW 1,629,000 tons N/A
Thames CT New London 1989 214 MW 1,713,000 tons N/A
Hawaii HI Oahu 1992 203 MW 1,634,000 tons 921 tons
Greenidge NY Yates 1950, 1953 163 MW 926,000 tons 8,560 tons
Westover NY Broome 1943, 1951 119 MW 805,000 tons 9,968 tons
Beaver Valley PA Beaver 1987 114 MW 1,434,000 tons N/A

In 2005, these coal-fired power plants emitted 36.4 million tons of CO2 (0.6% of all U.S. CO2 emissions) and at least 102,000 tons of SO2 (0.7% of all U.S. SO2 emissions).

AES abandons proposed Oklahoma plant

On February 17, 2009, AES announced that it had withdrawn its air permit application for a new 650MW unit at its Shady Point facility. Company spokesman Lindy Kiger explained the decision to cancel the project as "part of our broader strategy to re-evaluate our growth plans."[12]

Coal Ash Waste and Water Contamination

In August 2010 a study released by the Environmental Integrity Project, the Sierra Club and Earthjustice reported that Connecticut, along with 34 states, had significant groundwater contamination from coal ash. The report, in an attempt to pressure the Environmental Protection Agency to regulate coal ash, noted that most states do not monitor drinking water contamination levels near waste disposal sites.[13] The report mentioned Connecticut's AES Thames Generation Plant (Montville Power Station) was one site that has groundwater contamination due to coal ash waste.[14]

Elementary students protest AES Shady Point fly ash

{#evp:youtube|tUGy5_xN28A|Children affected by fly ash|right|210}} In December 2010, students at Bokoshe Elementary in Oklahoma teamed up to ask AES to stop dumping fly ash from its AES Shady Point Generation Plant near their homes. The students believe that the coal ash has caused more than half their class of 17 kids to develop asthma. The fly ash is dumped at a location owned and operated by Making Money Having Fun, LLC. Residents say the ash covers everything and they or relatives have trouble breathing. AES insists that the fly ash is safe and the company has taken steps to better contain the fly ash during transport to the dump site. But Bokoshe residents say they have reason to believe differently: "We feel like it's a hot spot for cancer and respiratory ailments,” resident Tim Tanksley told 5NEWS.[15]

Foreign coal power plants

AES also has interests in the following coal power plants outside the U.S.:[16][17][18]

AES in Argentina

AES has received criticism for its lack of investment in infrastructure, which has endangered public health and safety in Argentina. AES seems to have been reluctant to invest in the distribution networks, as such investments would not be economically viable in the company’s assessment. Argentina’s electricity regulator has fined AES for this lack of investment and even forced the company to invest in new electricity poles. AES has now pledged to invest in electricity sub-stations and the distribution network, but only after reaching an agreement with the Argentine government following the latter’s initiation of legal proceedings against the company.[19] (For further information see AES in Argentina).

Puerto Rico and Coal Ash

In April 2010 the AP reported activist efforts against AES's selling of coal ash containing lead, arsenic and mercury to developers using it for residential and transportation projects, particularly within Puerto Rico. Several municipalities are considering moratoriums on such projects following complaints from residents, and scientists say the government should start testing air and water for possible contamination. Allan Dyer, president for AES Puerto Rico, denied the ash is contaminated. He said the ash product, Agremax, that is sold by AES as filler material for construction projects, has been thoroughly tested and complies with local and federal regulations. Pedro Nieves, president of Puerto Rico's Environmental Quality Board, said the use of coal ash for such projects is authorized because federal studies have shown that heavy metal levels are within safety standards. But he said the agency is collecting information and might issue a new round of studies if needed.[20]

Coal ash is the byproduct from burning coal in coal plants. It contains large quantities of toxic metals, including mercury, arsenic, beryllium, cadmium, chromium, nickel, and selenium, which can lead to respiratory and cardiovascular health problems through inhalation,[21] and has been known to leach into groundwater, contaminating drinking water.[22] As of April 2010, coal ash is not federally regulated in the U.S., and is used in products, such as construction fill, dry wall, and concrete.[23]

In December 2009, the U.S. Environmental Protection Agency delayed a decision on whether to propose reclassifying coal ash as hazardous, which would limit where it could be sent for disposal. The issue was raised with the TVA Kingston Fossil Plant coal ash spill in Tennessee, when 5.4 million cubic yards of the ash spilled in 2008, creating one of the worst environmental disasters of its kind in U.S. history. Nieves said he is monitoring the debate and might change his stance if the EPA issues new regulations.[20]

It is the second time in recent years that AES has faced concerns from environmentalists and government. In 2007, the company agreed to pay $6 million to clean up industrial waste in the Dominican Republic, whose government filed a lawsuit alleging AES dumped 82,000 tons of coal ash along several beaches, which the lawsuit claimed was shipped from the AES plant in Puerto Rico.[20]

Articles and Resources

Sources

  1. ↑ 1.0 1.1 AES Corp., BusinessWeek Company Insight Center, accessed July 2008.
  2. ↑ J. Wilde Ramsing and T. Steinweg, "Down to the Wire: The Impact of Transnational Companies on Sustainable Electricity Provision in Developing Countries," SOMO, June 2009.
  3. ↑ 3.0 3.1 Coal-Fired Utilities to American Public: Kiss my Ash DeSmogBlog.com & PolluterWatch, October 27, 2010.
  4. ↑ CEO Compensation: #170 Paul T Hanrahan, Forbes.com, May 3, 2007.
  5. ↑ 5.0 5.1 Existing Electric Generating Units in the United States, 2005, Energy Information Administration, accessed April 2008.
  6. ↑ 6.0 6.1 "AES completes acquistion of six power plants in New York with total capacity of 1424 MW", Business Wire via High Beam Research, May 14, 1999.
  7. ↑ “GreatPoint Energy closes $100 million capital raise co-led by Citi Alternative Investments and Dow Chemical”, GreatPoint Energy press release, September 24, 2007.
  8. ↑ Martin LaMonica, "Where coal and clean tech meet", Cnet, April 13, 2009.
  9. ↑ Robert Gavin, “Mass. plant will make natural gas from coal”, Boston Globe, October 25, 2007]
  10. ↑ Environmental Integrity Project, Dirty Kilowatts: America’s Most Polluting Power Plants, July 2007.
  11. ↑ Dig Deeper, Carbon Monitoring for Action database, accessed June 2008.
  12. ↑ Susan Hylton, [http://www.tulsaworld.com/news/article.aspx?subjectid=11&articleid=20090218_12_A11_PNMmah634105&archive=yes "Coal plant proposal abandoned," Tulsa World, February 18, 2009.
  13. ↑ "Study of coal ash sites finds extensive water contamination" Renee Schoff, Miami Herald, August 26, 2010.
  14. ↑ "Enviro groups: ND, SD coal ash polluting water" Associated Press, August 24, 2010.
  15. ↑ Jared Broyles, "Bokoshe Students Say Coal-Burning Plant Causing Cancer" LA Times, Dec. 7, 2010.
  16. ↑ "Generation", AES website, accessed June 2008.
  17. ↑ United Kingdom Quality Ash Association, "Power Station Locations and Capacities", undated but after 2006, accessed June 2008.
  18. ↑ Mott MacDonald, "UK Coal Production Outlook: 2004-16", Department of Trade and Industry website, Final Report March 2004. See Appendix E: UK Coal Power Stations, page E-1 at the end of the report.
  19. ↑ J. Wilde Ramsing and T. Steinweg, Down to the Wire, SOMO (Center for Research on Multinational Corporations), June 2009, page 107.
  20. ↑ 20.0 20.1 20.2 Danica Coto,"Environmentalists criticize use of coal ash in Puerto Rican construction projects", San Francisco Examiner, April 6, 2010.
  21. ↑ "Green Coal?," Rachel's Environment & Health News, November 6, 2008.
  22. ↑ "Constellation, Gambrills residents settle fly-ash suit," Baltimore Sun, November 1, 2008.
  23. ↑ Shaila Dewan, "Tennessee Valley Authority Increases Hazard Ratings on Coal Ash Sites," New York Times, July 17, 2009.

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External links

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