Tuesday, Aug. 25, 2009

Board nixes $2.2 billion coal plant

PINOPOLIS — Ending months of private discussions, Santee Cooper’s governing board abandoned plans Monday to build a $2.2 billion coal-fired power plant that had sparked an uproar in South Carolina over the need for the energy complex and its potential environmental impacts.

The Santee Cooper board agreed the state’s sluggish economy, the expense of looming federal carbon regulation — and an agreement with another power company — have made it possible to forgo building the power station along the Great Pee Dee River in Florence County.

O.L. Thompson, the Santee Cooper board chairman, said that while the state-owned utility reserves the right to pursue the coal plant at a later time, he doubts that will happen.

The 11-member board voted unanimously to stop seeking environmental permits for the plant. The state Department of Health and Environmental Control has approved an air pollution permit, but that is under appeal. State and federal water quality and wetlands permits are pending.

“The likelihood of us ever activating it is remote,’’ Thompson said of the coal plant.

Santee Cooper’s decision to drop the coal plant might put to rest the war of words between environmentalists and the business community, but that depends, in part, on Duke Energy. The North Carolina-based utility must agree to supply power for five Upstate electrical cooperatives Santee Cooper serves — and North Carolina utility regulators must sign off on the deal.

Ron Calcaterra, whose Central Electric Power Cooperative represents all of the state’s 20 rural and suburban cooperatives, was optimistic Monday that both Duke and the North Carolina Utilities Commission will agree to the power sale of 1,000 megawatts over seven years, beginning in 2013. Calcaterra hopes he will have all approvals by year’s end.

Duke’s board is expected to discuss the sale today.

Santee Cooper’s board voted Monday to amend its contract with the cooperatives to allow a deal between Duke and Central Electric. It also agreed to delay the second phase of a planned two-year rate increase for customers to help pay for the coal plant.

Monday’s vote was a blow to many political leaders who saw the Great Pee Dee River plant as a way to pump up the economy of rural Florence County.

But the decision was a resounding victory for the state’s environmental community, which had kept a steady drumbeat of opposition to the plant for more than two years.

Gov. Mark Sanford also issued a statement Monday applauding the Santee Cooper board’s decision. Sanford earlier this year came out against the plant.

“Building another coal-fired plant was always going to be a short-term solution to a long-term problem,’’ Sanford said.

Chief among environmental concerns has been mercury pollution from the coal plant. Like other coastal plain rivers, the Great Pee Dee is full of fish already so polluted by the toxic metal that state health regulators have issued warnings against eating some species.

“I’m thrilled,’’ said Nancy Cave, who organized efforts against the plant for the S.C. Coastal Conservation League. “We don’t need this coal plant. It’s like they (Santee Cooper’s board) have woken up.’’

Using coal as way to provide electricity is an increasingly debatable plan. The fossil fuel, which in many cases is mined by blowing off the tops of mountains, is considered a major source of greenhouse gas pollution when burned in power plants to create electricity. Many states have abandoned plans for coal plants.

Santee Cooper’s coal plant annually would have released up to 10 million tons of carbon dioxide and as much as 93 pounds of mercury. The utility had applied for permits for two units to generate 1,320 megawatts, but said it only planned to build one.

Pamplico Mayor Gene Gainey said any deal between Duke and the Upstate cooperatives hurts his community. The plant was expected to bring 100 full-time jobs and 1,400 construction jobs. He hoped it also would lure new industries.

“I’m very disappointed in them doing that,’’ Gainey said of Santee Cooper’s decision. “We are a small farming community and had been hoping for a good long time we could get more industry here. It is a stressed area.’’

Lonnie Carter, Santee Cooper’s chief executive, said the plant is expensive and unnecessary in tough economic times. Santee Cooper’s overall sales are down 5 percent from last year, he said. Dropping the coal plant makes it imperative that Santee Cooper gain permission to build a nuclear plant north of Columbia with SCE&G, he said.

“This is all about money,’’ Carter said.

Reach Fretwell at (803) 771-8537.

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