Little value given to new power deals

Agreements negotiated by state regulators with developers of coal-fired power plants provide no guarantee that the plants will install technology to capture carbon dioxide emissions, a cause of global warming, an environmental leader said Wednesday.

"These agreements are basically not worth the paper they are written on," said Charles Benjamin, Nevada director of Western Resource Advocates. He also is president of Nevadans for Clean Affordable Reliable Energy, or NCARE, which includes the Sierra Club, Citizen Alert, National Resource Defense Council and other groups opposed to coal-fired power plants.

The Nevada Division of Environmental Protection Tuesday signed memorandums of understandings with three coal plant developers -- Sierra Pacific Resources, the parent of Nevada Power Co., and two independent power producers, LS Power Group and Sithe Global Power.

Sierra is developing the $3.8 billion Ely Energy Center, which includes a transmission line. LS Power is working on plans for a similar coal-fired plant at Ely, and Sithe proposes a coal-fired plant in Mesquite.

Adam Grant, a spokesman for Sierra Pacific Resources, said the agreements are "the result of lengthy and extensive discussions with NDEP, and we're satisfied that we were able to reach a compromise that is consistent with the director of the State Environmental Commission."

In a letter to Benjamin, division Administrator Leo Drozdoff defended the agreements and criticized the environmental group.

"It is clear from NCARE's previous actions in this state and elsewhere that it is the organization's goal simply to stop the construction of these and other coal-fired power plants," Drozdoff wrote.

The agreements "are over and above any federal or state of Nevada requirement. In our view, Nevada should be commended for its action." Drozdoff said.

"Some of NCARE's comments, somewhat naively and incorrectly, imply that these plants are being foisted upon Nevada," he continued. "This observation is not correct."

NCARE is concerned that carbon dioxide emissions from the plants will contribute to global warming. The State Environmental Commission, at the suggestion of Gov. Jim Gibbons, proposed the agreements in September in response to a request from NCARE to suspend permitting for the coal plants. The commission rejected NCARE's request to suspend processing of the permits for the plants.

The division allowed NCARE to respond to draft versions of the documents, but it rejected suggestions that it hold public hearings or give others an opportunity to comment on the permits.

Benjamin said the agreements were not legally enforceable. The agreements could not be used to require coal-plant developers to install carbon dioxide capturing technology at a later point, he said.

Benjamin complained that the public should be allowed to comment on the agreements before they were signed.

The division plans to hold one open meeting an the proposed air permit for the Ely Energy Center, Benjamin said. It will be conducted on Jan. 9 in Ely.

Drozdoff defended the lack of public input on agreements. The agreements have been used in dozens of past cases.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or (702) 383-0420.