Proudly serving Irvine, Ravenna and Estill County

Letter to the Editor

November 12, 2009

Public Service Commission should revoke certification of proposed coal-burning power plant.

It is no secret that East KY. Power Cooperative is moving forward with plans to construct another coal-fired power plant, called Smith 1, in Clark County not far from the Estill County line. As an Estill County resident, Jackson Energy customer and farmer, it is troubling to me that EKPC seems determined to proceed with this coal-burner which is not only unnecessary but will put EKPC at financial risk, increase my electric bills, and poison our air, land and water with toxic releases of arsenic, mercury, selenium and lead. Here are some facts about the proposed burner.

It is unnecessary:

• EKPC’s certification is based on overblown load projections. When the PSC approved Smith 1 in 2006 EKPC claimed additional power was needed to serve new customers from Warren County, but that deal subsequently fell through.
• Recent analysis by the Ochs Center showed that EKPC can meet its load projections through initiating cost-effective energy efficiency and renewable energy strategies instead of building the expensive, polluting Smith 1.

Smith 1 will be a financial risk for EKPC and a burden for ratepayers:

• It is unlikely EKPC will be able to sell the excess energy that will be generated by Smith 1 due to changes in regional energy polices and markets which are pushing states to generate an increasing share of electricity from renewable resources.
• The cost of construction has increased 44% since EKPC received its certificate. It is now projected that Smith 1 will cost almost $250 million more than originally estimated.
• According to EKPC’s 2008 annual report the utility’s cost of power to members increased by 70% from 2002 to 2008. Building Smith 1 will saddle EKPC and customers like me with nearly one billion dollars more in long-term debt.
• New federal regulations on disposal of coal waste, mercury and greenhouse gas emissions are likely to be enacted within the next two years.  EKPC’s certificate to build Smith 1 did not take into account the costs inherent in complying with the anticipated regulations.

These factors make it clear EKPC’s Smith 1 plan is unreasonable, unnecessary and unacceptable. The PSC should act quickly to revoke approval of such a fatally flawed proposal.

Robin Reed