By LEE BERGQUIST lbergquist@journalsentinel.com , Journal Sentinel

Thursday, June 24, 2004

Regulations that would require four Wisconsin utilities to limit mercury emissions from coal-fired power plants for the first time received approval Wednesday from the state Natural Resources Board.

The regulations, which the Legislature will review, are aimed at reducing mercury in water and making fish from Wisconsin waters safer to eat.

Coal-burning plants would have to cut mercury emissions 40% by 2010 and 75% by 2015.

The policy-setting board of the Department of Natural Resources first approved the regulations a year ago, but legislative leaders said the 2003 package went too far.

Since then, utilities and environmentalists and regulators and lawmakers have worked on a compromise package. On Wednesday, business groups and environmentalists told the board that while they had reservations, they backed the mercury-reduction package.

A key change from a year ago is that state regulations must be changed to reflect future federal mercury-reduction regulations.

That satisfied groups such as Wisconsin Manufacturers & Commerce. "The bottom line is that we were looking for certainty," Jeff Schoepke, director of environmental policy for the state's largest business group, said, adding that his members did not want to have to adhere to two sets of emissions regulations.

"The Legislature understands that most people want mercury reductions," said former DNR Secretary George Meyer, now executive director of the Wisconsin Wildlife Federation.

The Bush administration advanced a mercury rule package that was weaker than Wisconsin's. But in April, the Environmental Protection Agency said it would delay final action until next March after environmentalists said the rules would take too long to cut emissions.

The utilities affected by the cuts are We Energies of Milwaukee, Alliant Energy of Madison, Wisconsin Public Service of Green Bay and Dairyland Power of LaCrosse.

But the utilities say they will pass their regulatory costs on to customers. Last year, the DNR estimated that a 40% reduction in mercury emissions could cost utilities $28 million to $33 million a year, or $6 to $7 a year for the average residential customers.

The second phase of cuts, then estimated at 80%, would cumulatively cost $87 million to $104 million, or $18 to $21 a year. Bill Skewes, executive director of the Wisconsin Utilities Association, said the industry thinks the costs will be higher than that.