BEREA — The Berea-based Kentucky Environmental Foundation (KEF), along with several other non-profit organizations and rural electric co-op members, petitioned the Kentucky Public Service Commission (PSC) on Wednesday, asking it to review and revoke the certificate of public convenience and necessity for the coal-burning Smith 1 power plant proposed by the East Kentucky Power Cooperative (EKPC).
If approved, the plant will be built on the Kentucky River in Clark County, just across from Madison County. Blue Grass Energy and Clark Energy customers in Madison County would receive their electricity from the plant.
“The right decision for EKPC is to abandon their Smith 1 project and invest instead in a robust strategy of helping their customers become more energy efficient and investing in clean energy sources,” said Madison County resident and Blue Grass Energy customer Mike Hannon.
“According to recent analyses, taking this approach would cost (customers) less over a 20-year period than building and operating the Smith plant. In addition clean energy strategies will create good jobs in all 87 counties served by EKPC’s rural co-ops.”
In 2006, the Kentucky Public Service Commission approved EKPC’s plan to build the proposed coal-burning power plant. EKPC stated then that the plant was needed to meet anticipated expansion in its customer base.
That growth never happened, according to an Oct. 29 statement released on behalf of KEF, Kentuckians for the Commonwealth and the Sierra Club.
In 2007, when the PSC renewed its approval of the Smith plant, the commissioners included cautionary language noting that EKPC may not need the electricity from the plant, the opposition groups pointed out.
The PSC is charged with overseeing the activities of electric utilities in Kentucky.
To protect coop ratepayers, the plaintiffs contend that the PSC should revoke the certificate for the Smith plant.
“Fortunately, revoking the certificate for the Smith plant would not prevent EKPC from providing electricity to its members,” said Berea resident Elizabeth Crowe, KEF executive director. “There are many new funding mechanisms for energy efficiency and renewable energy programs now that did not exist in 2006. EKPC could pursue these channels more aggressively and, with help from the PSC, help its members by shifting to clean, affordable energy solutions.”
The plaintiffs claim that several factors have changed since the power plant was approved, making it no longer necessary to meet EKPC’s demand. In addition, according to the complaint, building the plant would be detrimental to co-op ratepayers and other Kentuckians.
Factors listed in the complaint include:
-- EKPC’s customer base did not expand as expected, and economic conditions have actually decreased demand for electricity.
-- The cost of construction has increased 44 percent since EKPC received its certificate.
-- The utility’s financial health has deteriorated significantly and financing the plant would saddle EKPC with a high interest rate loan.
-- Stricter air and water quality protections, along with pending federal greenhouse gas emissions limitations, will add substantial costs to coal-burning plant operations.
-- Selling excess energy from the Smith plant to other utilities has become difficult, if not impossible, because of changes in regional energy policies and markets.
-- EKPC can meet its load projections through a proven set of cost-effective energy efficiency and renewable energy strategies.
“The substance of our complaint is that, as things presently stand, nobody can be fully assured that this project makes sense,” said noted Kentucky author Wendell Berry, a Shelby Energy co-op member and a plaintiff.
He said he joined the action because he is concerned about the negative economic and ecological consequences of the plant, particularly to the Kentucky River beside which his farm is located downstream from the proposed Smith plant.
“The proposed Smith power plant doesn’t make economic sense for the taxpayers or the ratepayers,” Berry said. “Like most people, I would rather not be party to a public complaint of this kind, but this one appears to me to be necessary.”
The plaintiff’s petition to the PSC is available electronically at www.kyenvironmentalfoundation.org and www.kftc.org.
A recorded version of the press conference is also available by contacting Elizabeth Crowe at 986-0868 or elizabeth@cwwg.org.
Ronica Shannon can be reached at rshannon@richmondregister.com or 624-6608.
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