Author Archives Laura Arnold

The Statehouse File: Rockport plant, contract could get second look under legislation; IndianaDG asks is it bad for Indiana?

Posted by Laura Arnold / February 27, 2013 / Posted in Uncategorized / No Comments

Dear IndianaDG Readers:

In case you missed it, there were two Guest Editorials this past weekend in the Indianapolis Star that I neglected to mention about the Indiana Gasification, LLC plant.

One was written by Mark Lubbers who is a proponent of the Indiana Gasification, LLC plant and on the payroll of the company. http://www.indystar.com/article/20130223/OPINION03/302230028/Mark-Lubbers-Why-the-Rockport-plant-makes-sense
The second was written by opponents of the project and is entitled, "A bad deal for Indiana, or a bargain? Coal-to-gas plant would hurt ratepayers" by Steve Francis and Ed Gerardot. Francis is chair of the Hoosier Chapter of the Sierra Club. Gerardot is exeuctive director of the Indiana Community Action Association. See http://www.indystar.com/apps/pbcs.dll/article?AID=2013302230027

Mark Lubbers is trying to make this battle and SB 510 about the BIG BAD coal-hating Sierra Club. Yes, although it is true that the Sierra Club does not like coal this argument belies the fact that this project is BAD BUSINESS. To get this perspective on the project, I urge that you read a research report by Indiana University entitled, "Natural Gas, Unnatural Prices; How SNG and Artificially High Natural Gas Prices Will Affect Indiana's Economy". Researchers at Indiana University's School of Public and Environmental Affairs (SPEA) and the Indiana Business Research Center (IBRC) at the Kelly School of Business measured the expected impact of the SNG construction, operations and the SNG loss tax. The research was published February 2013 and the full report is available at www.ibrc.indiana.edu/studies/naturalgas.pdf.

Ok, so the Report was prepared on behalf of Vectren who opposes the current "deal" for Indiana Gasification, LLC. That doesn't mean that the findings of the report are invalid.

Just because this debate has also turned into an attack on Vectren also does not mean that the plant is BAD for Indiana. Is Vectren perfect? No perhaps not. Is this a case of the "pot calling the kettle black"? Maybe but it still does not discount that the Indiana Gasification plant planned for Rockport is not a good idea.

I urge you to study the issue for yourselves and then share your thoughts with us here at IndianaDG. OK?

Laura Ann Arnold

February 26, 2013 | Posted by: Lesley Weidenbener

By Lesley Weidenbener TheStatehouseFile.com

INDIANAPOLIS – The proposed coal-to-gas plant planned for Southern Indiana could get a second look from state regulators under legislation passed Tuesday by the Senate.

But that review would take place only if the Indiana Supreme Court strikes down a 30-year contract that calls for the state to buy most of the fuel produced by the Indiana Gasification plant, resell it on the energy market, and pass the savings – or the losses – on to customers.

The contract, which was signed by Gov. Mitch Daniels’ administration but has become controversial among some natural gas utilities and lawmakers who say the deal isn’t a good one for Indiana ratepayers, is currently tied up in a court battle.

Sen. Doug Eckerty, R-Yorktown, said the legislation is designed to ensure that if the Supreme Court rules against the contract, those ratepayers are treated fairly by giving the Indiana Utility Regulatory Commission more authority – and more direction – in its review of the deal.

“They can modify or they can reject the final purchase contract, which would have a very big effect on the plant going forward,” Eckerty said.

The contract includes a $150 million guarantee that could be paid to natural gas customers at the end of the 30-year contract

Eckerty’s original bill would have ordered changes in the contract that Indiana Gasification would have killed the deal.

But lawmakers decided that interfering in the contract would be ill-advised. The amended bill now moves to the House, where Speaker Brian Bosma, R-Indianapolis, said he’s had concerns about the contract. Ultimately, though, he said he decided that the state couldn’t break a contract.

But Bosma said if the court strikes down the deal, a new look by state regulators is a good idea.

Lesley Weidenbener is managing editor of TheStatehouseFile.com, a news website powered by Franklin College journalism students.

SB 510 concerning Substitute Natural Gas Contracts, i.e. Indiana Gasification, LLC Passes Indiana Senate 47-3

Posted by Laura Arnold / February 26, 2013 / Posted in Uncategorized / No Comments

This afternoon the Indiana State Senate passed SB 510 on third reading by a vote of 47 to 3. After a brief introduction of the bill by Sen. Doug Eckerty (R-Yorktown), there was very brief discussion lasting less than 10 minutes before the vote was taken.

Sen. Karen Tallian (D-Portage) spoke against the bill indicating that she changed her opinion of the bill after language was added to SB 510 that the losing party in litigation gets to pay the attorney fees.

Sen. Jean Breaux (D-Indianapolis) spoke in favor of the bill, however, she stated that she didn't think it provided enough guidance to the Indiana Utility Regulatory Commission (IURC) and that she would have preferred stronger language.

Sen. Brent Waltz (R-Greenwood) spoke in favor of the bill noting it made needed improvements. Sen. Lonnie Randolph (D-East Chicago) was spoke in favor of the bill although he does not like the language inserted into the bill about the loser paying the attorney fees in litigation.

The bill now moves to the Indiana House for further action.

Amendment on SB 510 offered to address Vectren coal purchases but not adoped

Posted by Laura Arnold / February 26, 2013 / Posted in Uncategorized / No Comments

Dear IndianaDG Readers:

Please find below an excerpt from an Evansville Courier & Press article written by Eric Bradner concerning SB 510 which addresses the Indiana Gasification, LLC plant proposed for Rockport, IN. Last week, SB 510 was amended in the Senate Utilities Committee to the dismay of many of the bills supporters. The second reading amendment offered yesterday was clearly intended to "send a message" to Vectren who has been leading the charge for SB 510 which was introduced to introduce some ratepayer safeguards into the contract for the Indiana Gasification, LLC coal gasification plant proposed for Rockport with the Indiana Finance Authority.

Please don't get this Rockport plant confused with the I&M/AEP Rockport coal-fired power plants discussed in the last blog post. See http://wp.me/p37Lx8-14V

SB 510 is on third reading calendar for the Indiana Senate for final passage. SB 510 is expected to pass the Indiana Senate today (2/26/2013) and then will move on to the Indiana House for further deliberation. IndianaDG expects many more twists and turns on this issue before state lawmakers adjourn by April 29, 2013.

Laura Ann Arnold

Debating Rockport plant...

By Eric Bradner
Evansville Courier & Press
Posted February 25, 2013 at 8:32 p.m.

INDIANAPOLIS —The battle between Vectren Corp. and developers of the coal-to-gas plant proposed to be built at Rockport, Ind., continued in the state Senate Monday as a senator took aim at Vectren’s coal purchases.

The chamber was debating a bill that could trigger another round of regulatory reviews of the state’s 30-year contract to buy and then resell the synthetic natural gas produced at the plant being financed by Leucadia National Corp.

Sen. Lindel Hume, D-Princeton, offered an amendment that was a shot at Vectren, which has opposed that Rockport plant.

His proposal would have required utilities such as Vectren that purchase coal from their own subsidiaries to pay the average market price for that coal, rather than higher prices they’ve negotiated for themselves.

“They cannot gouge the consumer. They can simply pass along the going rate for coal if they bought it on the open market,” Hume said.

“Even though it isn’t a problem at this point, it has been — we’ve seen that it did take place, and people were paying significantly higher than they should’ve been, and this would put a stop to that kind of thing.”

His proposal was ultimately voted down as senators decided it had little to do with the overall bill.

AEP Agrees to Retire 3 Coal Plants including Tanners Creek in Indiana

NEWS RELEASE

For Immediate Release Monday, February 25, 2013

Contact: Nachy Kanfer, nachy.kanfer@sierraclub.org, 614-625-3894

Shannon Fisk, sfisk@earthjustice.org, 215-327-9922

David Jakubiak, djakubiak@elpc.org, (312) 795-3713

Kerwin Olson, kolson@citact.org, 317-702-0461

Shane Levy, shane.levy@sierraclub.org, 201-679-9507

American Electric Power Agrees to Retire Three Coal-Fired Power Plants in Major Clean Air and Climate Victory

Clean Air Act Settlement a Milestone for Public Health in Indiana, Kentucky, and Ohio

COLUMBUS, OHIO - Today a coalition of citizen groups, states and U.S. EPA announced a landmark settlement agreement with American Electric Power (AEP) requiring AEP to stop burning coal by 2015 at three power plants in Indiana, Ohio and Kentucky. AEP also agreed to replace a portion of these coal plants with new wind and solar investments in Indiana and Michigan, bringing more clean energy on line to meet the region’s electricity needs.

AEP will stop burning coal at the Tanners Creek Generating Station Unit 4 in Indiana, the Muskingum River Power Plant Unit 5 in Ohio, and the Big Sandy Power Plant Unit 2 in Kentucky. Collectively, a total of 2,011 megawatts (MW) of coal-fired power will retire as part of the settlement, removing almost 12 million tons of climate-disrupting carbon pollution and nearly 84,000 tons of sulfur dioxide pollution that the three coal-fired power plants spew into the air each year.

“Today’s agreement will protect public health, reduce the threat of climate disruption, and create a cleaner environment for families in Indiana, Ohio and Kentucky,” said Jodi Perras, Indiana Campaign Representative for the Sierra Club’s Beyond Coal campaign. “Across the country, the coal industry faces unprecedented setbacks as its share of electricity generation plummets and the cost of coal continues to skyrocket. This agreement is only the latest sign of progress as our country continues to transition away from dirty, dangerous, and expensive coal-fired power plants.”

Today’s settlement comes in a lawsuit originally filed in a federal court in Ohio in 1999, and is a modification to a prior 2007 settlement . Other parties in the suit include the U.S. Environmental Protection Agency; eight states including New York, Massachusetts, Connecticut, and New Jersey; and 13 citizens groups including the Sierra Club, Natural Resources Defense Council, Ohio Citizen Action, Citizens Action Coalition of Indiana, and the Hoosier Environmental Council.

Coal-fired power plants are the nation’s largest source of mercury, sulfur dioxide (SO2) pollution, carbon pollution and many other deadly pollutants that can trigger heart attacks and contribute to respiratory problems. According to estimates from the Clean Air Task Force, 203 deaths, 310 heart attacks, 3,160 asthma attacks, and 188 emergency room visits per year will be averted once the Muskingum River, Tanners Creek and Big Sandy power plants stop burning coal.

“Tanners Creek, Big Sandy, and Muskingum River are dirty and outdated plants that should have been cleaned up or retired decades ago,” said Shannon Fisk, an attorney with Earthjustice who was co-counsel for Sierra Club on this matter. “We’re glad AEP is going to retire these aging dinosaurs, and urge the company to ensure an equitable transition for the workers and communities most directly impacted by these retirements.”

“This agreement will not only cut pollution, it will fund the long term benefits of mitigation efforts that further clean our air and environment,” said Faith Bugel, Senior Clean Air Attorney with the Environmental Law & Policy Center, counsel for eleven of the Citizen Groups.

Under today’s settlement AEP agreed to install pollution-curbing dry sorbent injection (DSI) technology on its massive Rockport coal-fired power plant in Southern Indiana. The 2007 agreement had required AEP to install flue gas desulfurization (FGD) technology at the plant -- a more expensive technology that results in greater pollution reductions -- but Sierra Club and the other parties agreed to the DSI technology in return for an earlier installation date, the other coal plant retirements, and clean energy investments. AEP will also be required to either retire the two Rockport units in 2025 and 2028, respectively, or to install additional controls designed to achieve removal of at least 98 percent of the sulfur dioxide created by the burning of coal at those units.

Additionally, the agreement commits AEP to developing 50 MW of wind or solar power this year and an additional 150 MW of wind or solar power in Indiana or Michigan by 2015. AEP also agreed to invest $2.5 million to improve air quality in Indiana through various measures including retrofitting outdoor wood boilers, investing in distributed renewable generation, and land acquisition.

“Across the Midwest and the Great Plains, in states like Iowa and South Dakota that already get 20 percent of their energy from wind sources, clean energy is powering homes, putting people back to work, and protecting families from dangerous and expensive coal-fired power plants,” said Kerwin Olson, Executive Director of Citizens Action Coalition of Indiana. “Indiana has one of the fastest growing wind industries in the nation and is creating thousands of local jobs. This settlement builds on that success and will only accelerate Indiana’s and our nation’s responsible transition to an economy powered by clean, renewable, affordable sources of energy.”

“With enormous potential for jobs in clean energy and energy efficiency, it is critical that AEP use the next three years to invest in affordable clean energy projects and transition workers into new careers,” said Jesse Kharbanda, Executive Director of the Hoosier Environmental Council. “By replacing decades-old coal plants with homegrown, clean and affordable energy sources, AEP can do right by affected workers and their families, and continue clean energy job creation across Indiana and Ohio.”

The other citizens groups involved in the AEP settlement are the Ohio Valley Environmental Coalition, West Virginia Environmental Council, Clean Air Council, Environment America, National Wildlife Federation, League of Ohio Sportsmen, Izaak Walton League, and the Indiana Wildlife Federation. The above-mentioned groups are all represented by the Environmental Law and Policy Center.

"This is a major victory in the effort to build a clean, sustainable energy future," said Michael Bloomberg, Philanthropist and Mayor of New York City, whose Bloomberg Philanthropies has contributed $50 million to the Sierra Club's Beyond Coal campaign. "The Sierra Club and its allies are ensuring that energy companies across the nation are investing in people and solutions that will grow and strengthen our economy for years to come."

The retirements of the Tanners Creek Generating Station in Indiana, the Muskingum River Power Plant and the Big Sandy Power Plant in Kentucky represent the 140th, 141st, and 142nd coal plants to retire or announce their retirement since 2010. Since January 2010, more than 50,000 megawatts of coal-fired power have been retired or committed for retirement nationwide.

Link to agreement: LINK

IndianaDG Readers, Additional stories can be found at:

http://dailycaller.com/2013/02/25/electric-utility-forced-to-shut-down-three-coal-plants-in-settlement-with-environmentalists/

http://www.washingtonpost.com/national/health-science/aep-agrees-to-close-3-coal-plants-in-emissions-lawsuit/2013/02/25/a11f1a96-7f5d-11e2-b99e-6baf4ebe42df_story.html

Indiana General Assembly approaching midpoint of 2013 session

Posted by Laura Arnold / February 25, 2013 / Posted in Uncategorized / No Comments

Dear IndianaDG Readers:

The Indiana General Assembly is reaching the midpoint of the 2013 session this week. Today (2/25/2013) is the deadline for third reading (3R) or final passage for House Bills introduced in the Indiana House. It is the deadline for second reading (2R) or floor amendments for Senate Bills introduced in the Indiana Senate with third reading or final passage tomorrow (2/26/2013).

Both Houses are expected to have long sessions today. If you want to watch the action, please visit http://www.in.gov/legislative/2441.htm to Watch Video of the General Assembly.

Laura Ann Arnold