Texas delays TXU coal-plant program
Source: Reuters
(Recasts first sentence, adds company comment) By Hilary Hylton AUSTIN, Texas, Feb 21 (Reuters) - A state agency on Wednesday delayed TXU Corp.'s <TXU.N> plans to start construction of six power plants in Texas, in a victory for environmentalists who oppose the doubling of TXU's coal-fired generation because of the threat of increased air pollution. The Texas State Office of Administrative Hearings postponed the start of TXU's air-pemit hearing by four months, until June 27, citing a state judge's ruling late Tuesday that blocked the Texas governor's effort to expedite permits for coal plants. Kerry Sullivan, a SOAH administrative hearing judge, postponed the start of TXU's evidentiary hearing on the permit applications for four months but said the agency will try to complete its work by late November. Dallas-based TXU had hoped to begin the hearing in as little as 30 days while environmental groups sought a six-month delay from Wednesday. The delay makes it less likely TXU can meet its stated target to bring the first 858-megawatt "reference" plant online in the fall of 2009. "We are disappointed," said TXU spokesman Tom Kleckner. "Any delay doesn't help meet the growing demand for electricity in the state. We feel like our comprehensive program is the best way to meet that need." TXU is expected to offer an update on its ambitious coal program on Feb. 27 when it releases fourth-quarter earnings. TXU's plan to build as many as 11 new coal units in the next few years has become the focus of opposition from environmentalists, elected officials and some business groups. On Tuesday, State District Judge Stephen Yelenosky in Austin issued a temporary injunction to block Gov. Rick Perry's executive order. That ruling allowed environmental groups opposed to TXU's plan to ask SOAH to reconsider the fast-track nature of the contested hearing, said Houston attorney Jim Blackburn. The hearing that was to begin on Wednesday consolidated permit applications for seven identical coal units to be built at six existing TXU sites. The SOAH judges' permit recommendation is subject to approval from the Texas Commission for Environmental Quality. Environmental groups said the expedited process did not allow sufficient time to present evidence, especially since the hearing covers six permit applications. In 2005, as Texas electricity prices jumped after hurricanes Katrina and Rita disrupted natural gas production in the Gulf of Mexico, Perry issued an executive order in an effort to spur coal-plant construction to reduce Texas' reliance on gas. In response, power companies, including TXU, NRG Energy Inc. <NRG.N> and others have proposed as many as 19 coal plants in Texas, exceeding 13,000 megawatts. Rising gas prices made coal generation highly profitable.
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