LITTLE ROCK State regulators approved a proposal Wednesday for a $1.3 billion coal-fired power plant in southwest Arkansas, despite objections by hunters and environmentalists that it would harm the surrounding land and pollute the atmosphere.
By a 2-1 vote, the Arkansas Public Service Commission granted Southwestern Electric Power Co.'s application to build the John W. Turk plant in Hempstead County. The plant must also obtain permits from Louisiana and Texas, as well as from the Arkansas Department of Environmental Quality and the U.S. Army Corps of Engineers.
SWEPCO plans to build the 600-megawatt facility on 2,875 acres by 2011. The company estimates the plant will create 110 full-time jobs once it is operating, with an estimated annual payroll of $12 million.
Commissioners Daryl E. Bassett and Paul Suskie voted for the project. Special commissioner David Newbern dissented.
"The commission has a duty and responsibility to ensure that adequate and reliable electric energy at reasonable and affordable rates is available to SWEPCO's Arkansas customers at the 'flick of a switch,"' the ruling said. "Without an adequate supply of affordable energy, our culture and the economy of this state cannot be sustained."
The commission agreed with SWEPCO last year that the company needs more electricity to meet a nearly 2 percent annual increase in demand among its customers. But the commission asked SWEPCO in March why the company wants to build a coal-fired plant "that will produce more greenhouse gases and potentially be in violation of anticipated federal legislation."
Newbern, appointed by Gov. Mike Beebe for the case, said the state set a poor example for the rest of the nation by approving a plant that opponents said would harm the environment.
"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."
The panel placed 12 conditions on the permit for the facility, most meant to address concerns about the environmental impact of the coal plant. Among other restrictions, the decision bars SWEPCO from placing any transmission lines in recorded archaeological sites or property owned by the Nature Conservancy.
The decision also prevents the utility from charging rate payers more if the plant's permit is not approved by Louisiana and Texas.
If approve and built, SWEPCO would own 73 percent of the plant, and is working out part-ownership deals with Oklahoma Municipal Power Authority, Northeast Texas Electric Cooperative, and Arkansas Electric Cooperative Corporation. In Arkansas, the typical SWEPCO bill would climb $8.50 a month.
Opponents had argued the plant will dump more pollutants in the environment, including carbon dioxide the chief culprit of global warming.
SWEPCO is a subsidiary of American Electric Power of Columbus, Ohio. The utility has 464,000 customers in Arkansas, Louisiana and Texas.
Beebe has not said whether he thinks the coal-fired plant should be built. Wednesday, he praised the commission's "thoroughness" and said he hoped the conditions issued by the panel would reduce its environmental impact.
The governor, however, did not say whether he agreed with the decision.
"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.
Scott McCloud, a spokesman for SWEPCO, said the 12 conditions placed on the company appeared to be a "workable solution" at first glance. He said the company would look over the order in detail next week.
"We strongly believe this was the right decision for meeting the future energy needs of our customers," McCloud said. "This has been a complex and lengthy proceeding and we are gratified by the commissioners' decision."
McCloud said SWEPCO likely would begin to build the plant even as it waited for approvals from Texas and Louisiana.
The Arkansas decision comes as coal power plants face increased scrutiny. A U.S. Department of Energy survey released in October showed at least 16 coal-fired power plant proposals nationwide have been scrapped in recent months. More than three dozen more have been delayed as utilities face increasing pressure due to concerns over global warming and rising construction costs.
Environmental groups said they were disappointed with the commission's decision but said they were hopeful the permit would be rejected by the state's Department of Environmental Quality. Opponents included the Audubon Society, the Sierra Club and the National Wildlife Federation.
"Arkansas is the natural state and we had an opportunity to continue a trend nationwide in rejecting coal. Today, we stepped off that bandwagon and went backwards rather than forwards," said Glen Hooks, a regional representative for the Sierra Club.
On the Net:
Arkansas Public Service Commission: http://www.arkansas.gov/psc/
Southwest Electric Power Co.'s proposed plant: http://www.swepco.com/news/hempstead/
