Texas lieutenant governor weighs bill to retire coal-fired plants

Portland, Maine (Platts)--21Jan2011/504 pm EST/2204 GMT

Texas Lt Gov David Dewhurst, a Republican, is developing a plan to provide financial and regulatory incentives for retiring some of the state's oldest and least efficient coal-fired power plants.

Dewhurst "is interested in gradually increasing the use of cleaner-burning, Texas natural gas through market-based incentives, so we can continue to improve air quality, create more Texas jobs, increase our energy independence and provide for the future energy needs of our growing population," Dewhurst spokesman Mike Walz said Friday.

Dewhurst is not advocating closing down coal plants overnight and instead envisions a phaseout for certain plants, Walz said.

The plan is still being developed and details will likely emerge this spring when a bill is introduced in the Texas Legislature, Walz said. The legislature is currently focused on budget and other issues, he said.

Texas has various coal-fired plants that that do not justify the cost of adding pollution control equipment to meet existing and pending environmental laws, according to Tom Smith, director of Public Citizen's Texas office. "There is no economic justification in keeping the plants in operation," he said.

The Electric Reliability Council of Texas is studying the effect pending environmental regulations could have on the Texas power plant fleet, according to Dottie Roark, a spokeswoman for the gird operator. The report is set to be released by early March, she said.

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