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THE UNIVERSITY DAILY KANSAN
MONDAY, MARCH 24, 2008
>> STATE
Sebelius' coal plant veto could raise electric rates
ASSOCIATED PRESS
TOPEKA, Kan. — When Gov. Kathleen Sebelius vetored a bill last week allowing two coal-fired power plants in southwest Kansas, her message to legislators mentioned their potential carbon dioxide emissions and declared her duty to protect the environment. She and other critics of the bill sense that a growing concern among the public about global warming, which many scientists link to man-made greenhouse gas emissions.
But supporters of the bill answered her by raising concerns about the potential for higher utility bills. Many said Sebelius' action, if allowed to stand, will raise electric rates.
Such arguments are an important part of their attempt to build public support for the two coal-fired plants, which Sunflower Electric Power Corp. wants to
build outside Holcomb, in Finney County. They'll need that support to persuade their colleagues to override Sebelius' veto or to pass a new bill.
"The two arguments that you
i to hear over and over again
are: Rates will go up and reliability will suffer," said Mark Brownstein, a managing director for the national advocacy group Environmental Defense. "It intimidates a discussion. Certainly, no one wants higher rates or ability."
dicted consumers would suffer. Senate President Steve Morris, a Hugoton Republican, went further, predicting "a devastating increase in the average Kansan's electric bill."
Sebelius is clearly aware of
"The two arguments that you tend to hear over and over again are: Rates will go up and reliability will suffer."
MARK BROWNSTEIN
Managing Director
for Environmental Defense
ingress rates or diminished reliability"
Immediately after Sebelius' veto, a fellow Democrat, Sen. Janis Lee, of Kensington, pre-
tears that her actions will raise rates by, for example, forcing Sunflower and other utilities to use cleaner-burning but more expensive natural gas as fuel. She again floated a proposal she had made in
January to allow Sunflower to build one coal-fired plant if the company committed to developing wind energy and conservation programs.
"We recognize that adding additional coal-fired power is likely to lower the high rates currently being paid by some Kansas customers who rely completely on natural gas for electricity," Sebelius wrote.
Sunflower wants to build two, 700-megawatt coal-fired plants. But in October, Rod Bremby, Kansas' secretary of health and environment, denied an air-quality permit for the Hays-based utility. Legislators responded with their bill, which would allow the $3.6 billion project to go forward and strip the secretary of some of his power.
about 400,000 customers in 55 counties. The 1,400 megawatts of generating capacity created by its project would be enough to supply the peak needs of 700,000 households, according to one state estimate.
But two out-of-state partners, one headquartered in Colorado and the other in Texas, initially would claim about 86 percent of the power. That arrangement is designed to give Sunflower
"We don't have a fuel bias. We have a cost bias."
Sunflower and a sister utility, Midwest Energy Inc., serve Watkins Jr., its
STEVE MILLER
Sunflower Electric Power Corp.
Spokesman
the money it needs to build the plants and help keep its customers' rates in check.
The Sierra Club has a c c u s e d Sunflower of having a conflict of interest because Earl chief executive
officer, and another executive sit on the board of the Western Fuels Association, based in Colorado. The association provides services to member utilities.
It manages two coal mines, and its Internet home page declares, "Coal is where your power begins." It promises members will receive "a reliable supply of coal."
But the association is a nonprofit cooperative, and Watkins said it's natural — and responsible — for members to play a role in its management.
Sunflower spokesman Steve Miller said the company's focus is keeping its customers' rates as low as possible, and in that context, coal makes the most sense.
"We don't have a fuel bias," Miller said. "We have a cost bias."
Historically, Kansas' heavy reliance on coal-fired power plants has kept its electric rates relatively low.
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