Cinergy to Install 'Scrubbers'
Sep 06 - Cincinnati Post
Cinergy Corp. plans to invest $1.8 billion to reduce air pollution from its coal-burning plants in Ohio, Kentucky and Indiana, as it anticipates new clean air standards from the federal government.
The investment will be Cinergy's largest environmental construction program
to date and create more than 1,000 construction jobs, officials said. How many
of those jobs will be in Greater Cincinnati was not immediately known, Cinergy
spokesman Steve Brash said.
The overall program is expected to reduce Cinergy's sulfur dioxide emissions
by about 70 percent and nitrogen oxide and mercury emissions by 60 percent each,
Brash said.
The air in Southwest Ohio and Northern Kentucky will be helped by lower
emissions from area plants and will also benefit from controls at Cinergy plants
in Indiana that are upwind from Cincinnati, he said.
Ultimately, the cost of the pollution controls will be borne by Cinergy
customers, Brash said.
Cinergy made an application with Indiana utility regulators on Thursday to
begin recovering its costs in that state. Electric rates in Kentucky are frozen
through 2006, but the additional costs will be included in its rate base
beginning in 2007, Brash said.
In Ohio, Cinergy's pending rate plan has a provision allowing it to recover
environmental costs from 2005 through 2008. If the state switches to
deregulated, market-based rates instead, those rates will reflect the fact that
all electric generating companies will have to meet the new EPA rules, Brash
said.
Cinergy is taking a significant step in the right direction, said Michael
Shore, senior air quality analyst for the antipollution group Environmental
Defense in Raleigh, N.C. However, he said what's really needed are tighter
federal standards and faster implementation than the U.S. Environmental
Protection Agency is currently proposing. The EPA proposal is expected to be
made final later this year or in 2005.
"Environmental Defense welcomes Cinergy's commitment to control
pollution from some of its power plants, but in order to fully clean up the air
in Ohio and the Eastern United States, we need the EPA to finalize standards to
reduce pollution from all power plants," Shore said.
Cinergy's program is progress, but not enough to get rid of unhealthy air,
said Kurt Waltzer, clean air strategy coordinator for the Ohio Environmental
Council. For that to happen, the EPA rule needs to be strengthened so that all
large, pre-1977 power plants are equipped with modern emissions controls, he
said.
Cinergy said its estimated $1.8 billion investment will likely grow to more
than $2 billion once the EPA's proposed Clean Air Interstate Rule is made final
and Cinergy begins a second phase of its program. The rule is intended to reduce
power plant emissions of sulfur dioxide and nitrogen oxide throughout 28 eastern
states. A separate proposal dealing with mercury emissions is also pending.
Details of the second phase of Cinergy's program will depend on what's
required by the final rule and the results of a test project the company's
installing at its smaller Gallagher power plant in New Albany, Ind., outside
Louisville. The technology in the Gallagher project appears promising for the
removal of mercury and particulates from power plant exhaust gases, Cinergy
officials said, but it hasn't been proven in a full-scale application.
Controls to be installed at Cinergy's Beckjord power plant in New Richmond
also will depend on the final rule.
Brash said construction at Miami Fort will begin as soon as permits are
issued, probably by the end of the year.
Scrubbers such as those being installed there generally cost about $200
million each and take two to three years to complete, he said.