E-mail this story | Print this page
LITTLE ROCK - The Arkansas Public Service Commission filing Wednesday of its order approving the application of AEP/Southwestern Electric Power Co. to build a 600-megawatt coal-fired power plant near Fulton caught local leaders and the company by surprise.
PSC Chairman Paul Suskie told the Hope Star on Wednesday that the decision would be forthcoming that day, and the commission later issued an order which establishes 12 conditions under which the SWEPCO application was approved in a 2-1 vote in which Suskie and Commissioner Daryl Bassett favored the project and Commissioner David Newbern voted against it.
Those conditions address environmental concerns raised by Hempstead County hunting clubs and landowners who were opposed to the applications before the PSC, as well as concerns raised by the Arkansas Attorney General's Office regarding protection of SWEPCO ratepayers.
“The Commission is also requiring SWEPCO to annually perform an updated analysis of the technical and economic feasibility of CO2 recapture and sequestration at the plant,” the PSC statement said. “This condition opens the possibility that CO2 capture technology may be used in the future of at the Turk plant.”
Other conditions require the company to route transmission lines away from the Nacotoch Ravines National Area, the Little River, Bois'd Arc Wildlife Management Area, specific archeological sites, property of the Nature Conservancy, Grassy Lake, or along the Kiamichi Railroad.
SWEPCO is also prohibited from using Kiamichi for coal delivery “and other purposes without additional Commission review and approval.”
Attorneys and representatives of intervenor parties were not available for comment at press time Friday. However, Dallas, Texas, attorney Rick Addision has said previously that intervenors would likely consider seeking a re-hearing before the commission should it approve the application. Addison has also said that, beyond that stage, he could not say with certainty whether intervenors might seek a ruling before the Arkansas Court of Appeals.
Intervenor spokesman Yancey Reynolds has previously expressed a similar sentiment, but neither were available for direct comment Wednesday or Friday.
SWEPCO spokesman Scott McCloud said Wednesday he was unprepared to issue a formal statement on the order, given the timing of the decision.
“It's a little surprising here before a holday weekend; but, it's good news,” McCloud said. “As we have mentioned before, we've always felt strongly that was the right decision for meeting the future energy needs of our customers.”
He said that while the process was “lengthy and complex,” SWEPCO recognizes that it has more to do.
“We continue to work with the Arkansas Department of Environmental Quality, the U. S. Corps of Engineers, the Enviornmental Protection Agency, and other agencies to obtain other permits,” McCloud said. “We will fulfill our environmental responsibilities.”
He said a formal statement by the company would likely be forthcoming after its attorneys have an opportunity to study the PSC order.
Hempstead County Economic Development Corp. President Wesley Woodard also expressed surprise at the timing of the decision, as well as relief at the outcome.
“I'm tickled to death,” Woodard quipped. “There will probably be an appeal; that, I think is a foregone conclusion. But, it's the first step befoe we can break ground on the plant.”
He said he was not surprised by the divided decision.
“Through the PSC hearings I attended there were things the attorney general's office and other agencies wanted to address, and I think that is what is involved,” Woodard said. “I believe SWEPCO is willing to work with those conditions, and that is what they said during the final arguments at the hearings.”
Hempstead County Judge Wallace Martin expressed relief at the ruling.
“I think that's great news,” Martin said. “It's something we've been expecting for several months. I'm elated.”
He said the county can now proceed with project planning for the rerouting of a portion of Hempstead County Road 49, and the closure of a railroad crossing on Hempstead County Road 189 to accommodate requests that have been made by SWEPCO.
State Representative David “Bubba” Powers, D-Hope, said he was pleased with the approach of the majority in the decision.
“I am delighted for Hempstead County and all of Southwest Arkansas with the PSC's approval of the certificate of need for the Turk Power Plant,” Powers said in a statement to the Hope Star. “As I read the opinion on Wednesday afternoon, it was clear that the majority opinion weighed all of the factors in coming to a difficult decision. I am especially pleased that Chairman Suskie and Commissioner Bassett took an expansive view of this project and the testimony presented in granting their approval.”
Powers expressed confidence that SWPECO will not be deterred by the conditions imposed on the project.
“I have a firm belief that SWEPCO will be able to meet all the conditions imposed by the Commission, and once the ADEQ requirements are satisfied, everything should be full speed ahead,” he said. “This $1.4 billion investment by SWEPCO will provide a much-needed boost to our area's economy, and also enable the company to continue providing affordable electricity to Southwest Arkansas for years to come. As I've said before, this is a once in a lifetime opportunity for all of us, especially our children, and I am grateful and extremely happy with this decision.”
The commission has been confronted with the question of environmental concerns raised by hunting club owners as intervenors in the application, and economic issues which supporters of the company have outlined during lengthy hearings.
Of particular concern has been the extent of the environmental role which the commissioners can play in their determinations, a point which the PSC staff has said is squarely in the hands of other agencies, but which it has said have a bearing upon protections which should be afforded ratepayers if the permit is approved.
The commission stated its position on some of those concerns in its statement Wednesday.
“Other conditions are designed to protect ratepayers. These include SWEPCO holding Arkansas ratepayers financially harmless form any adverse impact from the disapproval of this plant by the Texas and/or Louisiana utility regulators and from any adverse impacts if the plant is not fully subscribed to by other utilities or wholesale customers,” the statement said.
The PSC also established specific continuing governance by itself over the project.
“The CECPN (Certificate of Environmental Compatibility and Public Need) is also conditioned upon the Commission's ability to conduct future predence reviews and to make any appropriate adjustments regarding any imprudent cost overruns associated with the construction and operation of the Turk plant beyond the costs as estimated in this proceeding by SWEPCO or AEP,” the Commission stated.
The coal-fired John W. Turk, Jr., Power Plant has been compared by the company and supporters to a similar plant in Gentry, but the company has argued that the Turk plant's use of an “ultra-supercritical” fueling process gives the Fulton plant an environmental advantage.
However, Newbern's dissent from the order of the commission disagreed with the vision of that argument, according to a report by the Associated Press.
“To allow an increase in atmospheric pollution in this instance is shortsighted,” Newbern wrote. “This commission and the regulatory agencies of other states, as well, should lead the effort to reduce atmospheric pollution by example.”
Arkansas Governor Mike Beebe, who recently told the Hope Star that he expected the commission to weigh environmental concerns equally with those of economics, declined to express a firm opinion regarding the decision, according to reports by AP.
“Power for Southwest Arkansas is an important consideration, but we must balance those needs with our responsibility to protect our environment,” Beebe said in a prepared statement.
The text of the 161-page order became available on-line Wednesday at the PSC's website.
