Cinergy nixes clean air settlement, says price is too high

Louisville (Platts)--21Jan2004

Cinergy's Clean Air Act dispute with the US Environmental Protection Agency remains unresolved, more than three years after a tentative settlement was reached, because the agency wanted the Cincinnati-based company to spend an additional $400-mil on air pollution controls, according to Cinergy spokesman Steve Brash. He said in an interview this week that the parent company of Cincinnati Gas & Electric and PSI Energy already has spent $1-bil on equipment to reduce emissions of nitrogen oxide and other pollutants and to repower its aging 99-MW Noblesville coal-fired plant to natural gas, and in the process, boosting the plant's output to 300 MW. While Cinergy remains in negotiations with EPA, Brash said it's "highly unlikely" his company would agree to the additional expenditures.

The December 2000 preliminary accord, reached during the waning days of the Clinton administration, was aimed at settling the Clean Air Act lawsuit filed against Cinergy by EPA, the US Department of Justice, several Northeast states and two environmental groups. A DOJ spokesman Tuesday evening declined to comment on the Cinergy negotiations. He said a trial had been scheduled for June 2005 and "liability discovery" is ongoing. He did not elaborate.