Coal-Fired Electricity Proposal Blasted

Sep 22 - Missoulian

Missoula's plan to buy electricity from Great Falls is drawing criticism because that city intends to rely on coal. Mayor John Engen is reviewing a contract with Electric City Power, a not-for- profit company building a controversial coalfired power plant outside Great Falls. The agreement comes before the Missoula City Council for approval - or rejection sometime in the next two weeks.

Missoula officials say the deal stands to save the city $70,000 a year, and would buffer the budget from a volatile energy market. Electric City already is providing electricity to customers and saving them money by buying at lower rates than NorthWestern Energy. The proposed power plant will not be online for another five years.

Critics, though, say proponents have considered neither environmental costs nor long-term economic ones. They don't want Missoula even indirectly supporting Electric City's plant, insisting it will spew carbon dioxide and other pollutants into the air and pack a landfill with toxic wastes, including lead and mercury.

In a letter to the mayor, Alexandra Gorman, with Women's Voices for the Earth, said moving forward on a deal that supports a coal- fired plant is at odds with Missoula's purported commitment to reduce greenhouse gases.

"Earlier this year, you signed the U.S. Conference of Mayors Climate Protection Agreement, which commits Missoula to 'strive to meet or beat the Kyoto Protocol targets in their own communities.' Expressing an intent to purchase power exclusively from Electric City Power, whose dominant supply will be from new coal-fired power generation ... is antithetical to these commitments," wrote Gorman, the environmental group's director of science and research.

Last week, with a push from the Montana Environmental Information Center, Helena city commissioners rejected Electric City Power's proposition. In the Garden City, advocates were pushing council members and City Hall to do the same.

"There's actually no excuse for Missoula having done this," said Anne Hedges, MEIC program director.

The need for Missoula to secure stable electric rates has its roots in the Montana Legislature's deregulation decision a decade ago. Cities scrambled to get good rates as prices jumped. An effort by several cities to form a public power authority failed - so Great Falls formed its own not-for-profit company. Its goal: to build a power plant and provide electricity at low rates to consumers, including other municipalities and nonprofits.

A new law, backed by NorthWestern, put a kink in the works for Electric City, though. It said customers the size of Missoula must choose a supplier by this Oct. 1 - and, generally, stick with that company. So time is a factor.

In the next few weeks, Missoula can choose Electric City over NorthWestern, Energy. If the city goes with Great Falls, though, and then changes its mind, returning to NorthWestern would require approval of the Montana Public Service Commission.

Electric City Power is working feverishly to sign up customers. It needs a few more commitments to maintain its 15 percent share of the power plant. Great Falls city manager John Lawton said prospects look good. The Highwood Generation Station will be built regardless of how many megawatts Electric City sells.

"We have offered this service to the city of Missoula because they are our local government partner in a number of different areas, and it seems like a neighborly thing to do. But we are not putting the hard sell on Missoula. We hope they come with us," Lawton said.

Earlier this month, the Missoula City Council authorized the mayor to sign a contract with Electric City. Engen said the deal - with a homegrown company - offers Missoula more influence over its supplier.

The Public Service Commission recently shut down an Australian company's proposal to buy NorthWestern Energy, but NorthWestern, remains vulnerable to buyouts and any buyout could cost consumers more and steer control away from Montana, said Bruce Bender, chief administrative officer of the city of Missoula.

Even though the coal-fired plant isn't yet built, Missoula still could save some $70,000 a year because of Electric City's lower rates. "That's a police officer or a firefighter or a publichealth nurse, or more street trees or more asphalt or a bit of inflation," wrote Engen in an e-mail responding to criticisms.

City officials also say the proposed plant would be newer and therefore cleaner than the old coal-fired plants currently supplying some of Missoula's electricity. Electric City also is committed to green energy, such as wind, with a portfolio slated to include 5 percent wind by 2008.

Wind currently provides roughly 8 percent of NorthWestern's power. NorthWestern, is committed to a diverse portfolio, and both companies plan to increase use of renewables.

Many, however, consider Electric City's focus on coal misdirected and cause for Missoula to reject its advances. Last month, the Wall Street Journal reported the nation is shifting away from coal because of environmental concerns. For starters, said the Journal and several other publications, the cost of cleaner plants is too high, and their technology is unproven.

In addition, a study released earlier this year by the federal Environmental Protection Agency found that some new "clean-coal" technologies actually would increase greenhouse gas emissions nearly 119 percent.

That is one of the criticisms that flowed to City Hall late last week as conservation advocates, citizens and at least one legislator told city officials to nix the deal or at least slow down and more closely examine it.

"We've seen so much trauma and tumult in the (energy) industry in the state, we need to be cautious and look for worstcase scenarios - because unfortunately we've had a couple of them," said state Sen. Greg Lind, D-Missoula.

Lind said he wants to get the public involved, and ensure that his constituents have reliable, low-cost power. He also said the city of Missoula's carbon footprint will increase if it signs on with Electric City Power.

Gorman, with Women's Voices for the Earth, cited public health concerns and contamination of Montana's rivers and streams, but opponents also worry about costs.

"We think that the price projections of the Highwood Generation project are artificially low," said the MEIC's Pat Judge.

The power company's calculations don't account for soon-tobe- levied carbon taxes. According to the Montana Environmental Information Center, those costs could add roughly 30 percent to the cost of a kilowatt hour.

A federal lawsuit filed last month further complicates the deal. The MEIC is one of three plaintiffs in a complaint attracting national attention. It's the first legal challenge to a power plant following the U.S. Supreme Court's decision that carbon dioxide is a pollutant that should be regulated under the Clean Air Act, according to Judge.

Ward 3 City Councilman Bob Jaffe said the debate isn't as simple as windmills versus coal. A signed contract is not yet in place and he wants people to know they still can comment to council members.

"It does seem a little bit off course for the city to be promoting a coal plant. Clearly, there's something wrong there. (But) it is more complex than that. Investing in a source of power that has local control is something that the city is interested in," he said.

The matter will be before council in the next few weeks and Jaffe said he hopes to see vigorous debate. The MEIC sent an action alert to members Thursday, and Jaffe sent a notice Friday to his government listserv about the plan. The people quickly responded.

"Why couldn't Missoula government (sponsor) a revolving loan program for solar panels - both for hot water heating and electricity? If Great Falls is willing to secure financing for crappy coal, why can't Missoula do it for healthy sun?" wrote one citizen.

Engen said he welcomes public comment. However, he stands by his pledge to reduce Missoula's carbon footprint and wants a chance to thoroughly explain the agreement to the public: "I want people to participate, But I'm going to ask them to be patient and open- minded and ready to consider some details and some opportunities that don't get presented in a quick, reactionary e-mail chain."

Opponents, too, want the big picture unveiled to citizens: "The whole scheme is rife with flaws. Pollution aside, it is just a risky venture," said the MEIC's Hedges.