Commission Approves Coal-Fired Power Plant
Last updated Wednesday, November 21, 2007 5:24 PM CST in News
By John Lyon
THE MORNING NEWS
LITTLE ROCK -- The state Public Service Commission voted 2-1 Wednesday to approve a $1.3 billion coal-fired power plant in southwest Arkansas.
The regulatory body granted a certificate of public need to Southwestern Electric Power Co. to build and operate by 2011 a 600-megawatt coal-fired plant, to be known as the John W. Turk Jr. Power Plant, near Fulton in Hempstead County.
SWEPCO still needs final regulatory approval from the state Department of Environmental Quality, the U.S. Army Corps of Engineers and regulators in Texas, where some of SWEPCO's customers are located.
Commissioners Daryl Bassett and Paul Suskie voted to approve the plant. Special Commissioner David Newbern dissented.
The commission placed 12 conditions on the certificate, most of them intended to address concerns about the plant's environmental impact. SWEPCO also must agree not to increase the rates of Arkansas customers because of actions by regulators in other states.
Hunting clubs, environmental groups and some area landowners opposed the plant, claiming it would harm the local environment and arguing that alternative power sources are preferable to coal.
The commission said in its majority opinion that the opponents did not present a viable alternative for meeting SWEPCO's needs.
"In order for the commission to meet its duties to ensure that Arkansas' residential, commercial and industrial ratepayers have cost-effective and reliable electric service, it cannot simply adopt a policy of saying 'no' to pulverized coal considering the current state of electric generation technology for baseload generation and the lack of better alternatives to generate the needed electricity for SWEPCO customers," the opinion signed by Bassett and Suskie stated.
In his dissenting opinion, Newbern wrote, "The adverse environmental impact proposed in SWEPCO's application, accompanying documents and oral testimony is unacceptable."
Wesley Woodard, president of the Hempstead County Economic Development Corp., said he was thrilled by the commission's decision.
"We've been trying to get this certificate of need approved for some time," he said.
The plant will create as many as 1,400 construction jobs over a four-year period, and between 110 and 120 permanent jobs when the plant is completed, Woodard said.
"Plus, we'll see our sales tax and property taxes increase" and have a more reliable electrical supply, he said.
The Sierra Club of Arkansas issued a statement expressing disappointment with the decision.
"By expanding our energy choices and looking beyond coal, we can meet our energy needs while boosting the economy and fighting global warming," Sierra Club spokesman Glen Hooks said. "It's now up to the Department of Environmental Quality to do what the commission failed to -- protect the environment and public health by rejecting this coal plant."
THE MORNING NEWS' Rob Moritz contributed to this report.
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