Legislators seek to encourage cleaner-burning coal for power plants

Jun. 21--By Thomas Content, Milwaukee Journal Sentinel Knight Ridder/Tribune Business News

With the backing of opponents of Wisconsin Energy Corp.'s planned coal-fired power plants in Oak Creek, two legislators are pushing to revise state energy laws to encourage the use of a new, cleaner-burning form of coal generation.

The bill, drafted by Rep. Sheldon Wasserman, (D-Milwaukee), and Rep. Scott Suder, (R-Abbottsford), would revise the state's Energy Priorities Law to include gasification, a technology that has been in use in some parts of the country and is currently being proposed in Minnesota, Illinois and Ohio.

"This technology is the wave of the future. It's time for Wisconsin to be forward looking and embrace this," said Wasserman during a meeting with Journal Sentinel reporters and editors.

"Current law doesn't recognize this cleaner way to burn coal," said Suder, referring to the list of power generation technologies included in the state's energy priorities law. The law encourages the Public Service Commission to evaluate forms of generating electricity from the cleanest to the most polluting.

Wisconsin Energy had proposed five years ago that one of three new coal plants at Oak Creek be built using the new technology. But in November 2003 state regulators rejected the technology as unproven and too costly.

The commission instead approved two pulverized coal plants, using technology that's cleaner than aging coal plants but dirtier than gasification plants.

Renewed talk of coal gasification comes as the fate of the Oak Creek project remains up in the air, after a Dane County Circuit Court judge yanked a construction permit for the plant last fall. Wisconsin Energy and state agencies immediately sued to overturn the verdict.

The state Supreme Court is expected to decide the case by June 30.

But environmental groups and Racine-based S.C. Johnson & Son Inc. see coal gasification as a technology that's being proposed more often in other states compared with five years ago, when Wisconsin Energy first proposed its gasification plant.

Gasification projects are on the drawing board in Minnesota, Illinois, Indiana and Ohio, and companies are gearing up to build the projects, said John Thompson of the Clean Air Task Force.

Opponents of the pulverized coal plants see this as a compromise between Wisconsin Energy Corp.'s proposal and a natural gas-fired power plant alternative that would likely be deemed to expensive by the regulators.

Wisconsin Energy Corp. spokesman Thad Nation termed the endorsement of coal gasification by Oak Creek opponents another attempt to delay construction of a plant for which the utility had hoped to already have started construction. Switching technologies at this point would add several years' delay to a project that regulators had wanted to finished by the summer of 2009, he said.

"We continue to believe that this is the coal technology of the future, we continue to have people who are working on this issue," Nation said. "We're certainly watching what other utilities are proposing and doing but we were one of if not the first utility to propose an unsubsidized full-scale (coal gasification) unit. It was rejected by the Public Service Commission. But we remain committed to looking at this technology for the future."

Opponents have objected to the new coal plant, in part because of air-quality restrictions already in place in southeastern Wisconsin.

"All we're looking for here is a better alternative to what's being proposed, which according to our state law, is the worst choice under the energy priorities law," said Chip Brewer of S.C. Johnson. "And we have to ask ourselves, can't we do better?"

Wisconsin Energy says that emissions at its Oak Creek power plant and across its entire fleet of power plants will decrease once all of its proposed plants--fueled by coal, natural gas wind power -- are built.

Utilities have said the using coal gasification would be more costly for customers at a time when concern about rising energy costs is high.

Opponents say the higher cost associated with gasification would be offset by the higher costs of conventional technology, given changing energy and environment laws.

Amendments being considered in the U.S. Senate this week could place limits on carbon dioxide emissions, a contributor to global climate change, as part of a comprehensive energy bill.

"With a conventional coal plant, the risk is obsolescence, having a pulverized coal plant that can't deal with carbon restrictions," Thompson said.

 

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