North Carolina plans
additional hearings on coal plants
2 meetings set in Charlotte, Shelby
on Duke's planned Generators at Cliffside
Dec 8, 2006 - The Charlotte Observer, N.C.
Author(s): Christopher D. Kirkpatrick
Dec. 8--The public will get two more chances to weigh in on Duke
Energy's proposal to build two coal-fired power units west of Charlotte.
The N.C. Utilities Commission, which must give its approval, ordered
two hearings for next month in Charlotte and Shelby to hear from the
public about the project's escalating costs.
It's the second go-around for the commission, which already held
public hearings about Duke's plans to build the 800-megawatt units at
Cliffside, about 55 miles west of Charlotte.
But the proposal has changed with projected costs increasing from $2
billion to $3 billion, giving ammunition to environmental and consumer
groups that have been wary of cost all along.
The project's price tag is important to regulators because power
plant costs are ultimately passed on to consumers through higher rates,
and the commission is charged with making sure it's a good investment
for the public.
Duke said last month it might bring on a partner to defray 50 percent
of the costs and share in the benefits.
In that case, the utility said it would need to build an additional
natural gas-powered plant to meet future electricity demand.
It also said new coal-fired generation, even with rising construction
and equipment costs, is a financially appropriate hedge against the
volatility of natural gas prices and the uncertainty of building nuclear
plants.
Duke asked the commission for permission last year to build the
units, which it said it must start constructing by April to have them in
operation by 2011, a key year for energy demand.
The Charlotte utility, with about 2.2 million customers in the
Carolinas, said it adds 40,000 to 60,000 new customers a year.
The company predicts it will need an extra 2,120 megawatts of
electricity by 2011 for its customers in the Carolinas.
The Cliffside units would provide 1,600 megawatts, and the company
would buy the rest, said Paige Sheehan, a Duke spokeswoman.
"We currently don't have those resources to meet that demand," she
said.
Environmental and consumer groups say conservation and efficiency
programs could decrease demand and the need for the units.
Upcoming Hearings
The hearings are scheduled for:
--7 p.m. Jan. 10, Mecklenburg County Courthouse, 800 E. Fourth St.,
Charlotte.
--9 a.m. Jan. 11, new council chambers, Shelby City Hall, 300 S.
Washington St.
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