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California utility rejects cheap power from polluting coal plant
The Press Enterprise (AP) ^ | December 14, 2006 | Samantha Young

Posted on 12/14/2006 4:16:50 PM PST by calcowgirl

SACRAMENTO--A small utility near Lake Tahoe's north shore thought it had the answer to providing long-term affordable energy coal.

But after an outpouring of public criticism and political pressure, the Truckee Donner Public Utility District voted to reject a 50-year contract to obtain energy from a planned coal plant in Utah.

The district's vote late Wednesday night was an illustration of a larger debate within California. Over the last month, several utilities have considered renewing or negotiating new contracts for cheap power from high-polluting sources before a new state law takes effect Jan. 1.

Under that law, utilities in California will be prohibited from entering long-term contracts to buy power from out-of-state coal-fired plants unless they meet the lower emission levels of a combined-cycle natural gas plant.

Utilities have found themselves squeezed between competing forces the desire to provide inexpensive power to their customers and California's political shift to cut the emissions that contribute to global warming.

Gov. Arnold Schwarzenegger in September signed legislation requiring California utilities to buy energy from clean-burning sources. The measure is part of the state's strategy to combat global warming by reducing greenhouse gases such as carbon dioxide.

Schwarzenegger and U.S. Sen. Dianne Feinstein were among politicians, environmental groups and community activists to write letters urging the Truckee Donner board to reject the coal contract.

In his letter, Schwarzenegger warned of the potential consequences of greenhouse gases. Those include early melting of the Sierra snowpack around the picturesque town off Interstate 80, where the seasonal economy is highly dependent on the ski industry.

"We all recognize the need for a stable and affordable supply of electricity, but we have a responsibility to generate it in a way that is environmentally sensitive," Schwarzenegger said in a statement issued Thursday.

In a related effort, the California Public Utilities Commission on Wednesday issued regulations that would ban state-owned utilities from buying electricity from any source that emits more than 1,000 pounds of carbon dioxide for every megawatt generated. That's about the amount emitted by a modern natural gas power plant.

The regulations are scheduled for a vote next month.

The contract being considered by the Truckee utility had been in the works for about three years. It would have allowed the district to buy power from a Utah coal plant at cost, which supporters said would save the utility millions of dollars a year.

That plant is scheduled to be online by 2012, when the Truckee contract would have kicked in.

Truckee Donner officials acknowledged they rushed the vote on the contract to try to get it approved before California's new law takes effect. They said rejecting the Utah power likely would raise rates on the district's 12,000 customers by 30 percent.

California's law also prompted a handful of Southern California municipal utilities to consider renewing their coal contracts about 20 years early. The cities, including Pasadena and Anaheim, ultimately rejected the idea last month and decided instead to pursue power from wind farms, solar and other alternative sources.

Environmental groups commended the utilities for rejecting offers by Utah's Intermountain Power Agency Inc. to lock up contracts by the end of the year before the new law and PUC regulations take effect.

"California still runs on about 20 percent of coal, and that's not going to change overnight," said Paul Vercruyssen, development director for the Center for Energy Efficiency and Renewable Technologies, a nonprofit based in Sacramento. "But what we can do is say we're not going to financially support any new coal."

The votes against the coal contracts were expected given California's political environment, said Reed Searle, general manager of Intermountain Power Agency, based in South Jordan, Utah.

He said the company's plans to build a third coal-fired plant in western Utah are unaffected by the Truckee vote because cities in Utah are on a waiting list for the contract. Nevertheless, he said the company has heard California's demand for cleaner energy.

"We have been doing research and putting funds into carbon-reduction technologies," Searle said.


TOPICS: Government; US: California
KEYWORDS: coal; intermountain; sb1368; truckee
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1 posted on 12/14/2006 4:16:51 PM PST by calcowgirl
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To: NormsRevenge; SierraWasp; WayneLusvardi

FYI.


2 posted on 12/14/2006 4:17:52 PM PST by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: calcowgirl

And when California starts having shortages, they will be begging for our coal fired energy.


3 posted on 12/14/2006 4:24:16 PM PST by crazyhorse46
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To: calcowgirl

Then let them freeze to death in the dark, stupid people.


4 posted on 12/14/2006 4:25:43 PM PST by Godzilla (JESUS - The REASON for the SEASON)
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To: Godzilla
Gadzooks! Why can't Lex Luther hurry up and create all that Nevada and Arizona beach front property?

Opps... Yeah... Superman stopped him... Darnit!

5 posted on 12/14/2006 4:32:33 PM PST by Bender2 (I am off politics until Nancy moves to Tehran... There to be taken straight to the ever after!)
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To: crazyhorse46
You are missing the irony of their idiotic stance - they will be buying the coal-produced energy anyway. See, CA will pay a green company in VA to produce green enrgy, and sell it to CA. The VA company will dump the power on the grid in va, and trade it to the coal fired plant in Utah for their power, which will then be shipped to CA.

So, in effect, the californians have just taxed themselves 30% on their power bills to clean up the environment in VA.

I suppose VA should thank them, when we stop laughing.

6 posted on 12/14/2006 4:39:29 PM PST by patton (Sanctimony frequently reaps its own reward.)
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To: calcowgirl

It is unfortunate that my state legislature doesn't understand market forces. Please don't gloat too much in the comments guys, some of us had no say in this, but have to pay for it anyway.


7 posted on 12/14/2006 6:07:38 PM PST by amchugh
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To: amchugh

Every dem legislator voted for SB 1368; every Republican against it.

Unfortunately, the Governor's veto pen was MIA.


8 posted on 12/14/2006 6:11:23 PM PST by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: patton
The genie is out of the bottle. The Austrian moron is in the wild.

All the logic, all the facts and all the king's men can't put Humpty Dumpty back together again.

Energy production from ag refuse in CA is a similar scam and VA utilities are up to their ears in those deals also.

Who pays the freight? PG&E customers. Who benefits. VA utility stockholders and customers.

And so it goes.

9 posted on 12/14/2006 6:24:55 PM PST by Amerigomag
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To: Amerigomag
Yep. Thanks, BTW. I stopped laughing a few moments ago.

But I am still grinning...

The truly sad part is that the idiots that enacted this, have NO CLUE where their electricity comes from...VA does.

OK, now I am laughing again...

10 posted on 12/14/2006 6:31:53 PM PST by patton (Sanctimony frequently reaps its own reward.)
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To: calcowgirl
voted to reject a 50-year contract to obtain energy from a planned coal plant in Utah ..

Brilliant!!!

11 posted on 12/14/2006 6:50:08 PM PST by NormsRevenge (Semper Fi ...... Merry Something PC.)
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To: calcowgirl

ON BEHALF OF ALL CALIFORNIANS:

WE APOLOGIZE THAT OUR "LEADERS" DO NOT UNDERSTAND THE MEANING OF "FUNGIBLE".


12 posted on 12/14/2006 6:58:54 PM PST by HKMk23 (PRO-LIFE: Because a Person's a Person, no matter how small.)
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To: calcowgirl

Don't worry, RINOLD will provide CA's electricity by running one of his box-office bombs continuously.


13 posted on 12/14/2006 7:10:55 PM PST by Extremely Extreme Extremist (Why can't Republicans stand up to Democrats like they do to terrorists?)
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To: Bender2

LOLOLOLOLOLOL


14 posted on 12/14/2006 7:11:17 PM PST by Extremely Extreme Extremist (Why can't Republicans stand up to Democrats like they do to terrorists?)
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To: calcowgirl
I was extremely surprised that Truckee would even consider this deal, rather than reject it in a New Yark minute! The town is literally lousy with liberals and gourged with GANG-GREEN EnvironMentalist NIMBY's and BANANA's.

Some of the elements responsible for joining Bobby Kennedy, Jr and Arnoiled Schwartzenfrauder in slapping eastern CA with the Sierra-Nevada CONswervancy as a giant land-use tyranny over all the local governments closest to the people are from Truckee!!!

If they had brain one, they'd buy their enengy from a nuclear plant or a hydroelectic dam generator to "save the damned environment!" Coal throws out a thousand times the radiation into the atmosphere as does a nuclear plant which throws out .0000000000000000000000000000000001% in a millenium!!!

15 posted on 12/14/2006 7:31:54 PM PST by SierraWasp (Proud "100 percenter," wanting CA & US sticking with winning "core" conservatism 100% of the time!!!)
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To: HKMk23; NormsRevenge; calcowgirl; Amerigomag; Czar
OUR "LEADERS" DO NOT UNDERSTAND THE MEANING OF "FUNGIBLE"

I know! They think it's a treatment for a danged yeast infection, or maybe a fungicide!!!

16 posted on 12/14/2006 7:39:18 PM PST by SierraWasp (Proud "100 percenter," wanting CA & US sticking with winning "core" conservatism 100% of the time!!!)
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To: calcowgirl
While the new-age mealy mouths in CA are thumbing their noses at coal-generated power, their pragmatic neighbors in Nevada just approved a very large new coal-fired generating plant near Ely in White Pine County.

http://www.sierrapacificresources.com/projects/ely/
17 posted on 12/14/2006 8:27:33 PM PST by trane250
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To: trane250; calcowgirl; B4Ranch
That's only because the fruity and nutty Californians are only moving to Truckee Meadows and Lost Wages!!! You'll not find ANY Cauleeforneeuns, or Schwartzenegger's exurban refugees re-nesting is fridgid, windy and bitter cold Ely, NV!!!

Everybody can walk on Ely's water nowadays!!!

18 posted on 12/15/2006 2:19:27 PM PST by SierraWasp (Proud "100 percenter," wanting CA & US to stick with winning "core" conservatism 100% of the time!!!)
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To: calcowgirl

That's ok, they'll later sue the energy industy for price manipulation, because they were unwilling to buy energy in the futures market and then having no choice but to buy at much higher spot market prices.

The stupidity of politicians is always blamed on industry.


19 posted on 12/15/2006 2:24:51 PM PST by G Larry (Only strict constructionists on the Supreme Court!)
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To: SierraWasp
"OUR "LEADERS" DO NOT UNDERSTAND THE MEANING OF "FUNGIBLE"

What they do understand is that they do not want to piss off the environmental wackos lest they lose an ally for the next election cycle.

20 posted on 12/15/2006 5:14:15 PM PST by Czar ( StillFedUptotheTeeth@Washington)
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