Washington (Platts)--8Jun2007

In light of a US Supreme Court decision that went against Duke Energy in
a federal Clean Air Act lawsuit, the 11th Circuit Court of Appeals said it is
prepared to send a similar case against Alabama Power back to the district
court level for reconsideration.

     In an order released Friday, the 11th Circuit said it would stay the case
against Alabama Power another 30 days to allow the US Environmental Protection
Agency and the Alabama Environmental Council, the appellants, time to file for
relief from the district, which previously ruled in favor of the utility.

     Both EPA lawsuits against Duke Energy and Alabama Power dealt with the
Clean Air Act's new-source review requirements. But Alabama Power said its
case focuses more on routine maintenance at the power plants that are exempt
from NSR requirements and that issue was not addressed by the Supreme Court.  

     In its April 2 decision, Environmental Defense vs. Duke Energy, the high
court unanimously rejected an hourly emission rate as the trigger for the
Clean Air Act's new-source review requirements that pre-1970 coal-fired power
plants must invest in pollution control equipment if they undergo
modifications that boost their annual emissions.

     Alabama Power said it was "confident" that it would prevail in the
district court again in the 1999 case that involved NSR violations at its
Gorgus, Gaston, Barry and Mobile coal-fired power plants, all in Alabama.

     "We're confident about our case," said utility spokesman Michael
Sznajderman. "We believed all along we complied with the law. The judge in the
district court agreed with that. We sill believe we have a very strong case."

		--Cathy Cash, caty_cash@platts.com