Philadelphia (Platts)--22Jan2008

A collection of 10 Georgia electric cooperatives said that they plan to
spend $2 billion to build an 850-MW, pulverized coal power plant near
Sandersville, in Washington County in the eastern part of the state.

In a fact sheet distributed to local officials, the group said that
several of the wholesale power contracts on which the co-ops depend for
supplemental power will expire by 2013, and that "wholesalers are expected to
charge substantially higher prices for any contracts that are renewed." As a
result, the co-ops "are seeking ways to develop reliable sources of power at
affordable prices."

The co-ops also said that the proposed plant would be fitted with a wet
scrubber, selective catalytic reduction and other equipment to minimize
emissions. They expect the new plant to cost about $2 billion, and take
about five years to permit and build.

The 10 co-ops, or electric membership corporations, involved in the
project are Jackson EMC, Cobb EMC, GreyStone Power, Snapping Shoals EMC,
Diverse Power, Upson EMC, Central Georgia EMC, Pataula EMC, Excelsior EMC and
Washington EMC. Together, the co-ops serve a total of about 700,000 customers,
and their electricity demand is growing by 5% annually.

The Sandersville project is likely to face opposition. Just last week,
GreenLaw, a non-profit group litigating on behalf of the Georgia chapter of
the Sierra Club and others, said that it will appeal a state administrative
law judge's decision to uphold a state air permit issued for a 1,200-MW
coal-fired plant planned for a site in Early County by a joint venture of
Dynegy and LS Power.