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I Am a Unit Operator at Paradise Fossil Plant in Drakesboro, Kentucky. I Started My Career with TVA in 2011 As a Student, and Became an Assistant Unit Operator (AUO)

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I Am a Unit Operator at Paradise Fossil Plant in Drakesboro, Kentucky. I Started My Career with TVA in 2011 As a Student, and Became an Assistant Unit Operator (AUO) From: Board of Directors To: Pilakowski,Ashley Anne Cc: Campbell, Laura J; Tudor, AndrewJ; Hydas,James Hunter Subject: FW: ParadiseFossilPlant Date: Monday,December10,2018 4:56:39 PM From: Durbin, John Everett <[email protected]> Sent: Wednesday, December 05, 2018 7:38 PM To: Board of Directors <[email protected]> Subject: Paradise Fossil Plant Dear TVA Board of Directors, I am a Unit Operator at Paradise Fossil Plant in Drakesboro, Kentucky. I started my career with TVA in 2011 as a student, and became an assistant unit operator (AUO). I spent 6 years as an AUO at Paradise, and during that time, I achieved my operator accreditation. When the decision was made to shut down Paradise Units 1 & 2, my career path and thoughts of being able to retire from TVA someday were wiped away. I ended up being transferred from Paradise during the “surplus to fill” process that was initiated when the 2 units at Paradise ceased operation (April 2017). I was sent to Allen Fossil Plant, which was also slated to be shutdown, to be a control room operator there until the plant ceased to operate. I lived in a hotel away from my wife and children for 12 months as I operated the Allen Fossil Plant until it was taken offline for the last time. At that point, I was being transferred to Kingston Fossil Plant, but received an 11th hour reprieve when I was chosen to come back to Paradise as an operator, a position to which I had applied. I returned home in May of 2018, and was hoping to be home for good. Shortly after my return, we found out that there was reluctancy to fund the new turbine rotor project for Paradise, and that shutting the plant down could be on the horizon. I stand in disbelief when I look at the massive number and cost of upgrades that have been done to this plant in the last couple of years, to the tune of hundreds of millions of dollars, and TVA wants to shut us down. In the last 2 years, we have had brand new natural gas auxiliary boilers built and installed, new GE turbine controls installed on the main turbines, a new secondary super-heater installed in the boiler, and are currently nearing completion of construction on an ash de-watering facility to be compliant with environmental regulations (a project that appears on paper to have not been started yet based on the environmental assessment just recently issued by TVA). Additionally, this unit had cyclones replaced in 2012, has existing SCR (selective catalyst reduction system), electrostatic precipitators AND wet flue gas desulfurization scrubbers. These projects have set us up to run far into the future, and remain compliant with environmental regulations, as well as be reliable to the TVA system. Forgive the crude analogy, but a decision to not replace the rotors on this unit is tantamount to rebuilding an engine and transmission in a vehicle, repainting it, and then deciding to take it to the scrap yard because the tires are bald. We recently had a top 2 record run on this unit—this is a testament to the work ethic of the Paradise team, as well as to the massive benefit that the new Mark VI turbine controls provide to our reliability at this plant. My reason for writing this letter is to provide questions for those in decision- making roles to ponder and seek answers to in order to make the best decision possible. First, I would like to know how shutting down Paradise would be fulfilling TVA’s mission of economic development. Part of that mission of economic development is to provide good- paying jobs to the people of the community in which TVA serves. The loss of Paradise Units 1 & 2 cost many people their jobs, the community has suffered as payments in lieu of taxes have decreased, and the local school system has suffered greatly from this revenue that they had come to rely on for so many years. I’m certain the folks from the Muhlenberg County School Board would love to talk about how many school teachers ended up losing their jobs as a direct result of TVA’s actions when PAF 1 &2 were shutdown. From what I can see, TVA payments in lieu of taxes dropped by half from 2012 to 2014. How many more teachers will lose their jobs if TVA shutters Paradise? The previous cutback resulted in 51 layoffs and failure to replace 20 teachers who had retired (source: Messenger-Inquirer news article 06/23/2016 by Keith Lawrence “Muhlenberg schools plan cuts, tax increases”). Secondly, I would like to know how shutting down a coal plant in the middle of coal country is saving on fuel cost. Paradise is closer to coal than any other TVA plant in the valley, and it also has the flexibility to receive coal via truck, barge or rail if needed. This is important because Chip Pardee noted in his November 6, 2014 Board of Directors meeting remarks that having flexibility of delivery by water and by rail was a deciding factor in TVA choosing to keep the Shawnee plant in operation over Paradise units 1&2 and Allen Fossil. (reference board meeting Nov. 6, 2014 video beginning at 52:30 mark: https://tva.mediaplatform.com/#!/video/603/TVA+Board+of+Directors+Meeting+- +November+2014) During our current run, the corporate fuels folks didn’t expect us to run as reliably or for as long as we did, so we almost ran completely out of coal. One of the Vice Presidents, recognizing we were on a really good and reliable run, said to “get Paradise coal, no matter what it takes.” The problem with this is that TVA then contracted out-of-state truck drivers, housed them in hotels and essentially paid approximately 3 times our normal contract price for coal. It is not our fault that corporate let us run out of fuel. I can see these fuel costs being orchestrating into “Paradise costs too much to run” when in reality, it was corporate fuels that didn’t accurately figure how much coal we needed to keep on-site to stay running until our Fall outage started. Third, I question the recent assertion that this plant is unreliable and inefficient. The new turbine controls have greatly improved reliability resulting in a top 2 record run for this unit before we came offline for the Fall outage. It is worth pointing out that having fuel on- site is critical in terms of natural disaster planning and load forecasting. As a short-term example, I noticed several weeks ago that on the consolidated outage portal, Gallatin Combustion Turbine site had multiple units out of service due to road construction requiring the pipeline to be relocated. What would happen if there was a severe natural disaster, and TVA has all of its eggs in the gas turbine basket? What happens when the pipeline supplier cannot supply the gas? At a coal plant, we have a few weeks’ worth of fuel sitting on the ground, ready and available. Fourth, I question TVA’s claim that there is a desire for a balanced portfolio of generating assets. A truly balanced portfolio IS a great idea, however shutting any more coal units down is simply exacerbating an already heavily weighted portfolio in the wrong direction. According to the most recent 10-k filing with the SEC, in 2018 FY, TVA’s generating assets were as follows: 39% nuclear, 20% natural gas, 19% coal, 9% hydro and 13% purchased power. (reference page 13 of TVA 10-k for FY ended Sept. 30, 2018). As you can see, we are already approaching purchasing the same amount of power as our coal fleet is making, and idling 2 additional plants (as Johnson is proposing) would only further off-balance the portfolio. What happens when the Henry hub gas price spikes for some unforeseen reason? How are we reaching our mission of being the lowest-cost provider if we stagger our generating portfolio too heavily into the gas market? Long-term coal contracts can help to abate the financial risk of this, but only if coal remains a viable AND substantial portion of our generation portfolio. TVA has already shuttered more than half of the 59 coal-fired units it once operated (Chattanooga Times Free Press, Aug 27, 2018 “Trouble in Paradise: TVA studies whether to close more coal plants”). How is this promoting a balanced portfolio for grid reliability and stability? Finally, I question the assertion that load is flat and projected it to remain that way. This is in direct contradiction to the most recent 10-K that TVA filed with the SEC. According to that document, the year 2018 saw more kWh sold by TVA than at any time in the past 5 years. (reference page 46 of TVA 10-k for fiscal year ended Sept. 30, 2018 document) On December 31, 2017 the last Johnsonville Fossil plant was taken offline per the agreement TVA made with the EPA. In January, while I was operating at Allen Fossil Plant in Memphis, there was a cold spell that just about knocked the TVA system for a loop. We were in a “Conservative Operation Alert”, followed by a more serious “Power Supply Alert”. Essentially, these alerts come in various stages as we near maximum capacity of our supply capability. The Power Supply Alert 1 that went into effect on January 17, 2018 at 08:20 CST stated that all firm resources were committed to serve load and reserve obligations, emergency load curtailment program steps had been initiated, and the probability of interruption had been elevated to high.
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