Report recommends incentives to add coal-fired power in the West

Report recommends incentives to add coal-fired power in the West

Portland, Oregon (Platts)--25May2006

Western states should offer incentives to encourage development of
coal-fired power plants with a total capacity of 2,000 MW, and those
facilities should sequester at least 60% of their emissions, according to a
report that is expected to be delivered soon to Western Governors.

The report will recommend that Western states add 30,000 MW of clean
energy capacity by 2015, said Bill Keese, co-chair of the Clean and
Diversified Electricity Advisory Committee, which developed the report.

The report arose from an effort by Western governors to develop regional
energy policies that promote resource diversity. Keese outlined report
recommendations during an "Advanced Coal" Workshop hosted by Western
regulators Wednesday in Portland, Oregon.

Keese did not specify what type of incentives should be provided to
facilitate clean coal development.

Michael Peevey, president of the California Public Utilities Commission,
said "it's not clear how that would work," when asked in an interview whether
he supports state incentives for clean coal. Peevey noted that governors will
need to sign off on the report's recommendations.

At the meeting, Peevey stressed the need to link consideration of
coal-fired generation with efforts to combat global warming. "There is a
political consensus that greenhouse gas emissions are an incredible challenge.
We have to see coal and coal's future in that context," he said.

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