Friday, November 23, 2007

Public Service Commission Conditionally Approves Hempstead County Power Plant

In good news for Southwest Arkansas today the Arkansas Public Service Commission conditionally approved the construction of the John W. Turk, Jr Power Plant to be built by AEP/SWEPCO and their partners in Hempstead County near Fulton & McNab. Approval means good jobs at the plant during construction and then good permanent jobs and will provide inexpensive electricity for further economic recruitment/development as well as satellite support business. The decision today is a WIN for our area. The PSC's entire 113 page order can be found at http://www.apscservices.info/pdforders/06-154-u_209_1.pdf
Paul Suskie ARKANSAS
Chairman
PUBLIC SERVICE COMMISSION
(501) 682-1451 1000 Center
P.O. Box 400
Daryl E. Bassett Commissioner
Little Rock, Arkansas 72203-0400
(501) 682-1453
http://www.Arkansas.gov/psc Colette D. Honorable
Commissioner
(501) 682-1455 FOR IMMEDIATE RELEASE:
November 21, 2007
ARKANSAS PUBLIC SERVICE COMMISSION CONDITIONALLY GRANTS SWEPCO A CERTFICATE TO CONSTRUCT AND OPERATE A 600 MEGA-WATT COAL-FIRED GENERATION PLANT IN HEMPSTEAD COUNTY, ARKANSAS.
(Little Rock) – The Arkansas Public Service Commission has granted Southwestern Electric Power Company (SWEPCO) a Certificate of Environmental Compatibility and Public Need (CECPN or Certificate) to construct, own, operate and maintain a 600-MW coal-fired baseload facility in Hempstead County, Arkansas. The Commission placed twelve (12) conditions upon the certificate. SWEPCO still needs final regulatory approvals from the Arkansas Department of Environmental Quality, the U.S. Army Corp of Engineers, and the Louisiana and Texas utility regulators. The proposed facility will be known as the John W. Turk, Jr. (Turk) plant.

The Turk plant is one of three facilities SWEPCO has proposed to meet its 1600-MW load need as found by the Commission in Docket No. 06-024-U in 2006. The facilities are a gas-fired peaking unit that is in operation in Washington County, Arkansas, and the other is a gas-fired intermediate plant to be constructed in Louisiana. The intermediate plant is pending approval from both the Arkansas and Louisiana Public Service Commissions.
In the Commission’s Order, 12 conditions were placed upon the CECPN certificate. Most of the conditions are designed to minimize environmental concerns raised by the Intervening parties and to protect SWEPCO’s Arkansas ratepayers from costs relating to imprudence and regulatory uncertainty associated with the Turk plant. The Commission is also requiring SWEPCO to annually perform an updated analysis of the technical and economic feasibility of CO2 recapture and sequestration at the plant. This condition opens the possibility that CO2 capture technology may be used in the future at the Turk plant.
The conditions addressing the Intervenors’ environmental concerns prohibit any transmission lines from the plant being constructed across the Nacatoch Ravines National Area, the Little River and Bois’d Arc Wildlife Management Area, recorded archeological sites, property owned by the Nature Conservancy, the high ecological value Grassy Lake Area, or along the Kiamichi Railroad. These conditions also prohibit SWEPCO from using the Kiamichi Railroad for coal delivery and other purposes without additional Commission review and approval.
Other conditions are designed to protect ratepayers. These include SWEPCO holding Arkansas ratepayers financially harmless from any adverse impact from the disapproval of this plant by the Texas and/or Louisiana utility regulators and from any adverse impacts if the plant is not fully subscribed to by other utilities or wholesale customers. The CECPN is also conditioned upon the Commission’s ability to conduct future prudence reviews and to make any appropriate adjustments regarding any imprudent cost overruns associated with the construction and operation of the Turk plant beyond the costs as estimated in this proceeding by SWEPCO or AEP.
In addition to the Commission’s Order, a concurring opinion was filed by Chairman Paul Suskie and a dissenting opinion was filed by Special Commissioner David Newbern.
# # #
Contact: Paul Suskie at 501-682-5809 E-mail: psuskie@psc.state.ar.us
Docket No. 06-154-U, Document #209: http://www.apscservices.info/efilings/docket_search.asp

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