Legalectric

Another coal gasification bites the dust — yes, it took a coon’s age to get this posted, what can I say, the CapX hearings are taking up a lot of time… This was the best news in ages, continuing the theme that IGCC is a bad idea, too risky, too costly. This plant was one that seemed to have a lot of backing, which to me means that IGCC is done. When I’d posted about it, it garnered some wild NRG employee comments on this blog, ones that I hope that those employees’ bosses are aware of! I know NRG is watching, but I think some of their employees need to have their typing fingers taped together and/or not operate a computer while soused!

Here are a few articles with some choice comments:

From the Buffalo News:

Power Authority stops $1.6 billion plans for advanced coal plant at Tonawanda’s Huntley Station

Power Authority officials estimate that it would take an additional $175 million to $200 million per year in subsidies – on top of the significant aid already promised for the project – to bring the price of the electricity produced at the advanced coal plant down to the point where it could compete with other conventional sources of generation.

From newsday.com:

NYPA halts plans for clean-coal plant in Tonawanda

After pursuing various state grants and tax incentives, NYPA determined it is not possible to fully close the gap between what NYPA would have to pay for electricity and competitive market rates.

And from the Post Journal:

NYPA withdraws support for North Tonawanda clean coal project

”The economic, technological and regulatory obstacles are too great to warrant any further efforts at this time,” said Christine Pritchard, a NYPA spokeswoman.

… and…

NYPA officials were also uneasy about the technology. According to the company, there are only two IGCC plants operating nationwide, and 11 IGCC plants were either delayed or cancelled in 2007. In addition, the largest sequestration operation in the world is burying only 1 million tons of carbon dioxide underground annually, a third of what the NRG plant would be required to sequester – and carbon capture and storage technology has never been demonstrated off a clean coal power plant.

… and…

”It is also clear that an explicit and rigorous regulatory process with public support is a prerequisite for sequestration on a large scale. And while some amount of risk is necessary to prove new technology, the financial and environmental risk associated with this large-scale commercial power plant is simply too great,” the report concludes.

… and…

”Simply, at this time, the price gap is too large to overcome” said Pritchard of NYPA.

Tell us something we didn’t already know!!!

Yup, burning coal has an impact, you betcha.  Tell us something we didn’t already know.  But here’s a study that shows some specific results when comparing neurodevelopment of children exposed prenatally with those who were not exposed because the coal plant had been shut down.

Here’s the study:

Benefits of Reducing Prenatal Exposure to Coal Burning Pollutants

So what more do we need to know that shutting down coal plants is overdue?

The Clean Air Interstate Rule has been vacated, and here’s the real deal:

North Carolina v. EPA (consolidated with many more)

OK, one more thing to get figured out…

From this

… to this

What is Tim Pawlenty, the Green Chameleon, thinking? Very odd move… I cannot believe, though I guess it’s good if some of Koppendrayer’s beliefs about Excelsior Energy’s Mesaba Project are genetically implanted in her brain… but some things I find in a search do not bode well. First, she has ZERO experience in utilities. ZERO.

Second, she seems to spout off the way Koppendrayer does. Earlier this session, Wergin weighed in on a bill that would allow chiropractors to practice on animals, saying:

We need to keep in perspective the differences beween animals and humans.

[Animals] do not have the same status of humans… Animals are checked into the cargo space of airplanes.

Here’s Wergin’s take on whistleblower Paul Wotzka testifying:

Paul Wotzka is a hydrologist who worked for the Department of Agriculture for 16 years and then moved to the Minnesota Pollution Control Agency. Last spring, he was invited to testify before a different legislative committee, but his superiors refused permission. Shortly afterward he was fired.

The state maintains Wotzka was fired not for his interest in testifying, but because he took files from the Agriculture Department to his new job.

Sen. Betsy Wergin says that’s reason enough not to have him testify.

“And Senator Marty I’m going to ask that you not have this person testify because I think it’s wrong,” she said.

And then there’s this — Wergin and Laura Brod were leading the GOP charge against Franken:

Here’s Pawlenty’s official blather:

“Betsy has a tremendous combination of small business and public policy experience as well as extensive community involvement,” Governor Pawlenty said. “This perspective will be a great benefit to her on the PUC.”

… now she’s on the PUC… what does this mean? Given a comparison of my little bro’s opinions and mine, it’s even more confusing!

Otter Tail Power and Otter Tail Corporation are in the news again, with a bland look at their corporate structure.  This is the same corporate structure which is being reorganized because the utility and non-utility businesses were all lumped together.  Now, according to 6/3/08 filings at SEC and PUC, they’re going to reorganize, and put it into a utility holding company, and separate out the non-utility over aways from the utility.  And because an abusive kind of guy out west is getting all riled up about reporting on Otter Tail’s connection with Bill Gates, I think it’s time to get some more info out there!

Here’s the story in the STrib:

Is Otter Tail a utility or conglomerate?

And a snippet:

There have been no formal allegations against Otter Tail for commingling money between the utility and its other holdings. Still the utility in recent years faced a string of accusations that irregular accounting hurts ratepayers. Whiste-blowers first raised the issue four years ago, which led the Minnesota Public Utilities Commission to call Otter Tail in for its first comprehensive rate and operations review in 20 years.

Otter Tail, which has about 130,000 customers, almost half of them in Minnesota, has denied any improprieties in its bookkeeping, and an administrative law judge last month told the commission that he found no evidence of inaccurate financial reporting. Still, some advocates are nervous about its growing diversification…

Read the ALJ’s Rate Case recommendation here and check out p. 21, Capital Structure, and p. 71 too:

ALJ Rate Case Recommendation

Here’s the punch line regarding corporate structure reflected in the loosey-goosey capital structure (p. 103):

4. OTP has not shown that its proposed capital structure accurately reflects an appropriate division of debt and equity. The department’s proposed capital structure does reflect an appropriate division of debt and equity and should be adopted in calculating required revenue.

So what do y’all think about their structure?  The STrib article notes Minnesota Power’s other businesses, but they’re organized in a holding company structure with some separation of activities, and it seems that concern about this is a legitimate issue, particularly in a rate case.  If you can’t tell what’s a regulated business and what’s not, how could they justify or support a rate increase?