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Power plant decries official's activism
[September 06, 2007]

Power plant decries official's activism


(Tulsa World (OK) (KRT) Via Thomson Dialog NewsEdge) Sep. 6--OKLAHOMA CITY -- A utility company that wants to build a coal-fired electricity plant cried foul Wednesday after state Treasurer Scott Meacham appeared in full-page newspaper advertisements opposing the construction.

"We are extremely concerned that the treasurer agreed to the use of his office in an attempt to unduly influence the outcome of a proceeding before the Corporation Commission," said Brian Alford, a spokesman for Oklahoma Gas & Electric Co., which wants to build a coal-fired plant at Red Rock.

Meacham, who was elected to a four-year term in 2006, said he thinks it is "absolutely the role of the state treasurer to be concerned about the economy of the state."


"The easier and probably more politically expedient thing would be to say nothing and stay out of the fight," Meacham said. "But this is an issue I feel strongly about, and it has long-term ramifications for our state, so I decided to come out and take a stand."

The three-member state Corporation Commission is considering whether OG&E and American Electric Power-Public Service Company of Oklahoma can build the $1.8 billion plant.

Alford questioned why Meacham

is getting into the debate now, because the issue has been before the Corporation Commission for months.

"We find ourselves in an extremely awkward and unfamiliar position in defending our proposals and even our integrity outside the regulatory process. For us, this is unheard of," he said.

Meacham said the debate had been confined to the commission's meetings with the public having little idea of what was occurring.

"This is a broader public policy issue than the confines of this regulatory case," he said.

Meacham asserted that a coal-fired plant could be expected to have cost overruns in the neighborhood of 25 percent to 40 percent.

He also questioned why Wyoming coal would be used instead of the state's own cleaner-burning natural gas.

But Alford said OG&E would use the latest technology and build the cleanest coal plant in the United States.

Meacham appears in advertisements sponsored by a group called Know Your Power.

The coal plant has been vigorously opposed by Chesapeake Energy Corp., which spearheaded the formation of that group.

Chesapeake is a major producer of natural gas. Company spokesman Tom Price said Meacham was asked to support the opposition and that he was happy to do so because he feels so strongly that a coal-fired plant should not be built.

Meanwhile, the Corporation Commission concluded deliberations on the plant Wednesday without reaching a decision. Further deliberations are scheduled for Monday.

"Obviously, the commission will make a decision in their own time," said Matt Skinner, a spokesman. "It's a complex case."

On Wednesday, parties to the case responded to an administrative law judge's report recommending that the commission approve the plant and allow the utilities building it to recover part of the construction financing costs.

The Corporation Commission will determine whether customers need the power produced by the 950-megawatt plant, which is scheduled for completion in 2012.

Opponents of the plant maintain that its cost is too great, that approving the plant before its completion could expose ratepayers to an undue financial burden and that the utilities are not using existing facilities to capacity.

The plant is a joint venture between OG&E and AEP-PSO, two of the state's largest electricity providers. A third utility, the Oklahoma Municipal Power Authority, would own an 8 percent interest.

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World staff writer Jason Womack contributed to this story.

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Mick Hinton (405) 528-2465

[email protected]

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