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Welsh Unit 2 Decommissioning
Frequently Asked Questions
Jan. 2016
Why is Welsh Unit 2 being retired?
The retirement allows Southwestern Electric Power Company (SWEPCO) to achieve compliance with the U.S.
Environmental Protection Agency’s (EPA) Mercury and Air Toxics Standards (MATS) for existing power plants
at a lower cost to customers than installing additional add-on control equipment on all three units at the
plant. SWEPCO also accepted a limitation on the operations at Welsh Unit 2 to offset emissions from the John
W. Turk, Jr. Plant in Arkansas, that was impacting visibility in certain federal national parks, and later
committed to retire the unit to settle ongoing litigation over the Turk permits that was filed by Sierra Club,
Audubon Arkansas and the National Audubon Society.
SWEPCO’s coal-fired Welsh Unit 2, located near Cason, Texas, will officially be retired in mid-2016.
What happens after it’s retired?
SWEPCO has developed formal plans to decommission Welsh Unit 2 in a responsible manner that will
safeguard the local environment, and assure the safety and security of the local community and our
neighbors for years to come. When we complete decommissioning, the facility will be retired-in-place
pending future decisions on demolition.
SWEPCO and plant management will work with the Texas Commission on Environmental Quality
and other state and federal organizations to ensure that Welsh Unit 2 is decommissioned in compliance
with all applicable regulatory requirements.
What is happening to the other units on the site?
SWEPCO is in the process of retrofitting Units 1 and 3 at a total investment cost of $411 million to meet the
extended MATS environmental compliance deadline of April 2016. The unit retrofits are the highest value for
SWEPCO’s customers.
Won’t this impact the local community’s tax base?
Because of the environmental upgrade work on Units 1 and 3, along with ongoing investment in plant
infrastructure, the retirement of Welsh Unit 2 will have minimal impact on the plant’s contribution to the
local tax base.
What happens to the Employees at the plant?
Because SWEPSO is adding new environmental controls to Welsh Units 1 and 3, no employee staffing
reductions are expected due to the retirement of Unit 2. The total plant complement has been reduced
from 132 to 127, and the reduction has been achieved by shifting staff from operations to maintenance in
support of the other two units.
How long has Welsh 2 been producing Power?
Welsh Plant’s three generating units provide total capacity of 1,584 megawatts (MW). Units 1, 2 and 3 became
operational in 1977, 1980 and 1982 respectively, each with capacity of 528 MW. The plant and its employees
thank the leaders and citizens of Cason for the opportunity to continue to live and grow with them.