FRANKFORT — Kentucky's environment will suffer only modest degradation if the slew of new power plants that have been proposed are all built, according to a report from the Natural Resources Cabinet.

        Officials were quick to point out, though, that the additional air pollution issues are dependent on all the new plants and the 34 existing plants complying with new air emission rules.

        One of the proposed new plants is a peaking station that Cinergy Capital & Trading Inc., an affiliate of Cinergy Corp., wants to build in suburban Kenton County. The plant is proposed at an existing electric substation at 3000 Erlanger-Crescent Springs Rd., near the border of Erlanger and Crestview Hills.

        Six Kenton County cities and several individuals are appealing an air-quality permit issued for the peaking station. A hearing is set for July 29 before a hearing officer of the Kentucky Natural Resources and Environmental Protection Cabinet.

        The possible proliferation of power plants does raise some environmental concerns, said Bob Logan, commissioner of the Department of Environmental Protection. For example, Logan said the state should require all power plants to comply with water withdrawal rules imposed on most other industries. Power plants are now generally exempt from withdrawal rules.

        The recommendations and observations were offered to the Kentucky Energy Policy Advisory Board, created by Gov. Paul Patton after the rush of applications to build new generating plants. More than 20 plants have sought permits and Mr. Patton has placed a moratorium on new applications.

        Many of them are called merchant plants, which are built to sell electricity on the open market, rather than a utility that actually serves customers.

        Mr. Patton said he expects to present a package of legislation on generating plants to the 2002 General Assembly. He said he will also consider extending the moratorium on new plant applications, which is scheduled to expire in January.

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