North Carolina plans additional hearings on coal plants

2 meetings set in Charlotte, Shelby on Duke's planned Generators at Cliffside
 


Dec 8, 2006 - The Charlotte Observer, N.C.
Author(s): Christopher D. Kirkpatrick

Dec. 8--The public will get two more chances to weigh in on Duke Energy's proposal to build two coal-fired power units west of Charlotte.

 

The N.C. Utilities Commission, which must give its approval, ordered two hearings for next month in Charlotte and Shelby to hear from the public about the project's escalating costs.

 

It's the second go-around for the commission, which already held public hearings about Duke's plans to build the 800-megawatt units at Cliffside, about 55 miles west of Charlotte.

 

But the proposal has changed with projected costs increasing from $2 billion to $3 billion, giving ammunition to environmental and consumer groups that have been wary of cost all along.

 

The project's price tag is important to regulators because power plant costs are ultimately passed on to consumers through higher rates, and the commission is charged with making sure it's a good investment for the public.

 

Duke said last month it might bring on a partner to defray 50 percent of the costs and share in the benefits.

 

In that case, the utility said it would need to build an additional natural gas-powered plant to meet future electricity demand.

 

It also said new coal-fired generation, even with rising construction and equipment costs, is a financially appropriate hedge against the volatility of natural gas prices and the uncertainty of building nuclear plants.

 

Duke asked the commission for permission last year to build the units, which it said it must start constructing by April to have them in operation by 2011, a key year for energy demand.

 

The Charlotte utility, with about 2.2 million customers in the Carolinas, said it adds 40,000 to 60,000 new customers a year.

 

The company predicts it will need an extra 2,120 megawatts of electricity by 2011 for its customers in the Carolinas.

 

The Cliffside units would provide 1,600 megawatts, and the company would buy the rest, said Paige Sheehan, a Duke spokeswoman.

 

"We currently don't have those resources to meet that demand," she said.

 

Environmental and consumer groups say conservation and efficiency programs could decrease demand and the need for the units.

 

Upcoming Hearings

 

The hearings are scheduled for:

 

--7 p.m. Jan. 10, Mecklenburg County Courthouse, 800 E. Fourth St., Charlotte.

 

--9 a.m. Jan. 11, new council chambers, Shelby City Hall, 300 S. Washington St.

 

 


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