Author Archives Laura Arnold

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

Ft. Wayne Journal Gazette Editorial: SB 560 is “Oversight end run” of Indiana utility regulatory process

Posted by Laura Arnold / February 19, 2013 / Posted in Edwardsport IGCC Plant, Office of Utility Consumer Counselor (OUCC) / No Comments

Dear IndianaDG Readers:

One week ago today (2/14/2013) the Indiana Senate voted on third reading and final passage by 37 to 12 SB 560.

Click Here to see the roll call vote and to find out how your State Senator voted.

The vote was somewhat along party lines with a few notable exceptions as follows:

Republican Sens. Alting (R-Lafayette), Becker (R-Evansville), Smith (R-Charlestown) and Tomes (R-Wadesville) joined 8 Democrat Senators in voting "NO" .

Democratic Sens. Arnold (D- LaPorte), Broden (D-South Bend), Hune (D-Princeton),Skinner (D-Terre Haute) and Tallian (D-Portage) joined 32 Republican Senators in voting "YES" .

Sen. Delph (R-Carmel) was excused from voting.

Keep watching this. This is not over by a long shot.

Laura Ann Arnold

Published: February 19, 2013 3:00 a.m.

Click here for the Original Editorial published in the Journal-Gazette.

Oversight end run

Proposed legislation making it quicker and easier for utility companies to get customers to pay for transmission and distribution infrastructure projects is not a step toward efficiency – it’s a step away from proper oversight and consumer protection.

Senate Bill 560, authored by Sen. Brandt Hershman, R-Lafayette, easily passed in that chamber last week and moved to the House for approval. The bill includes multiple components, such as tax incentives for natural gas companies building gas lines in rural areas. The disconcerting element of the bill is that it allows electricity and natural gas utility companies to use cost “trackers” to speed infrastructure projects through the state regulatory review process and add most of the cost for a project to customers’ bills.

Cost trackers are a deregulatory move that allow utility companies to recoup the cost of an infrastructure project – building an electrical substation, upgrading transformers, installing utility lines or poles – from customers before going through a traditional rate increase procedure.

But weakening the regulatory oversight of the Indiana Utility Regulatory Commission and Indiana Office of Utility Consumer Counselor seems unwise in the wake of the Edwardsport scandal.

Duke Energy’s Edwardsport coal-gasification plant was rife with controversy from the beginning for alleged mismanagement of the project. Then it was discovered that former Indiana Utilities Regulatory Commission attorney Scott Storms was negotiating a job with Duke while handling Duke-related matters before the commission. The ethics breach led former Gov. Mitch Daniels to fire IURC chairman David Lott Hardy.

Traditional rate increase cases can take a long time and cost utilities millions. The extensive process helps protect customers and ensures utilities don’t request rate increases until they can prove a revenue increase is necessary and fair.

If this portion of the bill passes, it would allow an electricity provider to get expedited approval for installing a substation, for example, and get ratepayers to pay for most of the project long before the utility would have to go through the traditional rate increase process.

Proponents of the legislation assert the use of cost trackers will make it easier for utility companies to improve service to customers and address the state’s aging utility infrastructure. And supporters point to the increased use of trackers nationally. There are 18 states that allow natural gas companies to use the tracker process and at least 11 states that allow water utilities to use it.

They believe the bill’s requirement that utilities go through the complete rate increase process within seven years of using trackers will protect customers.

Opponents reasonably think the provision erodes needed regulatory oversight of utilities and forces utility customers to pay for the projects while giving those same customers less ability to contest the project. It allows utility companies to do an end run around the traditional procedure to request a rate increase. By the time the company goes through the full rate case process, the increased rates will likely already be locked in.

Environmental advocates are also concerned it would discourage energy companies from shifting toward renewable energy sources. The bill would make it easier to get power distribution and transmission projects approved, making it less important for companies to find efficiencies.

The new process could also become an impediment to economic development. Indiana economic development leaders have long used the state’s relatively low energy costs as an incentive to attract new businesses. But cost tracker cases always lead to rate increases.