New EPA regulations could come with hefty price tag for WM coal interests

New EPA regulations could come with hefty price tag for WM coal interests

Tougher guidelines may mean millions for city utility

news@theeveningtimes.com

A multimillion-dollar bill discussion circled the room at the West Memphis Utilities office during the Sept.

7 Utility Commission meeting. Commissioners heard Assistant Utilities Manager Todd Pedersen’s rundown of recent Environmental Protection Agency developments and the possible seven-figure impact those developments could have on the city.

The City of West Memphis is actually in the power production business, holding ownership, albeit a small share, in a pair of coal-burning power-generating plants — White Bluff Power Plant in Redfield, and Independence Power Plant in Newark. Pedersen warned that improving visibility and air quality to meet emerging EPA expectations could cost big bucks.

A newly-implemented Regional Haze program, or Clean Air Visibility Rule have set new goal-setting milestones and redefined uniform progress and guidepath benchmarks. Despite being ahead of the guidepath performance in Arkansas, regulators are pushing for accelerated time frames to ever increasing demands from the EPA. According to Pedersen, an analysis of the Federal Implementation Plan (FIP) requires emission limitations at both White Bluff and Independence plants that would require dryers and scrubbers to reduce sulfur dioxide, and add low nitro- gen oxide (low-NOx) burners.

Entergy has estimated the cost at a total of $2.2 billion to do bring the plants up to federal standards. The city utility’s share amounts to one percent ownership of the plants. Entergy has offered a counter proposal that would ostensibly achieve comparable visibility without having to spend billions and to exclude the Independence plant altogether.

Federal registration of the requirements is pending in the next few weeks.

“The major things that came out in the FIP are the requirements for scrubbers on both plants, within five years after filing at the federal register.” said Pedersen. “The cost of the scrubbers is up to a billion dollars per plant. We own one percent, so that is up to eight-to-ten million dollars per plant. The other thing that came out of it was they are requiring us to put low-NOx burners and sulfur controls on both facilities within 18 months. There are two at each plant.”

The work not only comes at a high cost, according to Pedersen but institutes unreasonable time frames.

“They’ve backed it all the way down to 18 months,” said Pedersen. “I am told it can’t be done. You cannot do the engineering design and procure all the projects and have it place in a yearand- a-half. Physically, that is major issue for four units.”

Pedersen provided the updated status to keep commissioners informed and availed himself for inquiries.

“Over the next few months we will keep you informed,” said Pedersen.

“Entergy owns 51 percent of the operation. They have a major interest and are doing a good job of representing us. If you have specific or technical questions we’ll get you the answer to the best of our ability.”

By John Rech