October 22, 2007

A decision by the Kansas Department of Health & Environment to deny a coal power plant permit would mean higher power bills for some.  That's "an absolute certainty," Sunflower Electric Power told us Friday.

          How much higher? At today's prices the firm could pay 1.5¢ for coal versus 8¢ for natural gas.

          "That's if we're forced to go to all gas," the firm reported, although it doesn't expect that "down the road." The firm plans to file an administrative appeal with regulators.

          But it's expected to fail.  When the case falls under judicial review, Sunflower believes it will be more successful.

          "Politics aside, the 1.5 million cooperative customers still need reliable, low cost power," said Earl Watkins, Sunflower CEO.

          His firm intends to keep fighting.

          The permit denial reportedly made Kansas the first government agency in the US to use CO2 emissions as the reason for tossing out an air permit application.

          Approval would have moved two proposed 700 mw coal-fired power plants forward.

          While permits for power plants have been denied for other emissions, KDHE Secretary Rod Bremby said information concerning greenhouse gas emissions should not be ignored and needs to be considered as a public health issue.

          It was estimated the two plants could emit about 11 million tons of CO2 annually.

          "This decision casts a shadow of uncertainty over future economic prosperity and places a lid on further hopes of energy independence and security," said Joe Lucas, executive director of Americans for Balanced Energy Choices (ABEC).

          "The decision by secretary Rod Bremby to deny the permit was made in spite of recommendations by the KDHE staff and leaders of the Kansas House and Senate."

          It was particularly disappointing that Bremby decided to take a rather pessimistic approach in assessing the ability of advanced technologies to make it possible to capture and store carbon emissions within the relative near-term at America's coal-based power plants, said ABEC.

          "Technology has provided the solution to every environmental challenge facing the coal-based electricity industry up until now," said Lucas.

          "Those who are familiar with the state of technology recognize that reducing greenhouse gas emissions in the electricity sector as a means of addressing climate concerns is not likely to be the exception to this rule."

          A new power source will be necessary in the state.

          Power use in Kansas increased more than 65% over the past two decades.

          State agencies figure Kansas residents and businesses will need 38% more electricity over the next 20 years.