Coal plant projects concern groups
Environmental issues raise state awareness

A plan to build up to 18 coal-fired power plants in north Texas has drawn opposition from Oklahoma groups worried about the environmental and economic effects on the state.

"We're concerned that their plan to build a significant amount of coal power plants would hurt the counties in southern Oklahoma that are close to nonattainment of federal ozone standards,” said Matthew Paque, an environmental attorney supervisor for the Oklahoma Department of Environmental Quality. "Much of the air quality problems in that area already come from Texas, and we're concerned that these facilities will put those counties closer to not meeting standards. We want to make sure permits are adequate to public health in Oklahoma.”

Under the National Ambient Air Quality Standards Act, more stringent controls and permitting requirements are required for a variety of projects when counties do not meet minimum air quality standards.

The Oklahoma environmental agency has filed a series of requests in the case, but has not determined whether it will intervene officially. The Texas Office of Administrative Hearings is scheduled to next address the case at a Feb. 21 hearing.

Texas utility giant TXU Corp. said its research indicates the proposed plants would have no adverse effect on Oklahoma.

"We're talking about actually cleaning the air because we will be offsetting all the new emissions by shutting down older, inefficient plants and retrofitting our existing fleet,” TXU spokesman Thomas Kleckner said. "Moving forward in such a fashion will offset new emissions and also reduce our total emissions by 20 percent from 2005 levels.”

The power plant proposal also is being fought by a group known as the Clean Sky Coalition, which has spent more than $1 million in advertising to oppose the plan. Oklahoma natural gas producer Chesapeake Energy Corp. is an outspoken member of the coalition.

"For both economic reasons and environmental reasons, it seems to make no sense for the state of Texas to produce clean-burning natural gas and export it to states around the country that have chosen not to burn dirtier coal while at the same time, Texas is choosing to turn its back on its own abundant clean-burning natural gas in exchange for burning Wyoming coal that will not do a thing to reduce environmental quality issues in Texas or Oklahoma,” said Aubrey McClendon, Chesapeake's chairman and chief executive officer.

Coal plants have regained popularity in recent years in part because natural gas prices have more than tripled from historical levels.

Increased volatility also has made it more difficult for utilities and other fuel users to budget their expenses.

McClendon, however, dismissed the idea that coal is less expensive than natural gas, saying those numbers do not include the cost of scrubbers to clean coal plant emissions or the social cost of increased pollution.

"How can you, as a serious person today, not be concerned about global warming,” McClendon asked. "And if you are, you can't continue to burn coal. Our industry needs to do a better job of telling that story.”

Besides the possible environmental aspects, McClendon admitted more natural gas-fired plants would directly benefit Chesapeake by increasing the demand for domestic natural gas.

"I'm not ashamed or embarrassed to be a pitchman for a superior product,” McClendon said. "We've chosen a product that is superior to coal. We're going to tell that story. It is a bad thing in Oklahoma if natural gas prices are low. High gas prices lead to increased royalty payments in Oklahoma, higher tax payments and more jobs.”

TXU has said the new coal plants are necessary in part because of the drastic increase in electricity demand expected over the next few years.

"We need the power now, and we can't afford to wait,” Kleckner said. "Coal provides the best short-term alternative. Also, we're currently over reliant on gas generation, which makes up 72 percent of our generation.”

Besides the proposed coal projects, TXU's parent company in recent years has installed some of the largest wind farms in the country. TXU Wholesale buys about 580 megawatts of wind-generated electricity, 22 percent more than Oklahoma's total capacity of about 475 megawatts.