Coal power plan generates
debate
Jul 10, 2007 - Knight Ridder Tribune Business
News
Author(s): Adam Wilmoth
Jul. 10--The first day of hearings Monday on a proposed $1.8 billion
coal-fired power plant featured debate over competitive bidding
practices, contract negotiations and the merits of coal versus natural
gas and renewable forms of energy.
In the end, much of the discussion could be irrelevant. The hearings
before the Oklahoma Corporation Commission focus on the coal power plant
Oklahoma Gas and Electric Co., Public Service Co. of Oklahoma and the
Oklahoma Municipal Power Authority want to build at an existing OG&E
coal plant near Red Rock. Under a new Oklahoma law, the state's two
largest electric utilities have asked the Corporation Commission to
approve their construction plan before the power plant is built. It is
still unclear how much authority the commission has and how much it will
choose to yield in the case. "The word 'preapproval' doesn't even appear
in the statute," Commissioner Bob Anthony said Monday during a line of
questions directed at Stuart Solomon, PSO's president.
"I think the focus of the commission is to determine whether there is
a need for th power plant." Anthony made it clear he does not believe
the commission has the authority to tell the utilities what fuel they
should use in their power plants. "If somebody thinks the commission
ought to decide whether the next plant for PSO should be nuclear, coal,
gas or wind, I wish they'd say so," Anthony said. "I don't find that's
our legal responsibility." A strict interpretation of the new state law
and of PSO's application before the commission says the commission is
charged with determining only whether there is a need for the utilities
to build the proposed plant, Anthony said.
The commissioner recogn zed, however, that other factors may be
involved in determining whether the need is proper. The state's newest
commissioner, Jim Roth, took a more holistic approach toward the issues
in the case, including contract disputes and competitive bidding
practices. "All those issues are appropriate for the commission to
investigate," Roth said. "Ultimately, you have to find a balance between
the utilities' application and our duty to safeguard the consumers. I
think it goes beyond whether the utility claims they n ed it and we
simply say 'yes' or 'no.'"
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