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Friday, March 08, 2002

Senate panel studies power plant bill




By Bruce Schreiner
Associated Press

        FRANKFORT, Ky. — A Senate committee chairman said Thursday he expects the General Assembly to enact regulations on the siting of proposed new electric generating plants now unregulated by the state.

        A House-passed bill would create siting boards to judge the appropriateness of locations for merchant power plants.

        The Senate Agriculture and Natural Resources Committee took no vote on the measure. Afterward, Chairman Ernie Harris said the bill would come up at the next hearing.

        Mr. Harris said plenty of time remains in the final 3 1/2 weeks of the legislative session for lawmakers to take action.

        Gov. Paul Patton imposed a moratorium on accepting applications for permits after nearly 30 generating plants were proposed by the power industry within an 18-month period. Most of them would be merchant plants, which would generate power only to be sold outside the state.

        Mr. Harris has proposed his own power-plant siting bill that has some important distinctions from the measure that passed the House.

        Mr. Harris' bill would create permanent public membership on the siting board. Construction of a merchant plant could not begin without a construction certificate issued by the siting board. The siting boards envisioned under the House bill would include two “ad hoc” members representing the communities where the plants are proposed.

        Mr. Harris' bill also would exempt the state's regulated utilities from reviews by the siting boards. The House-passed version would force those existing utilities to go before the siting boards when proposing new plants, a proposal that utilities claim is unnecessary since the Public Service Commission already reviews plant sites.

        Both bills include setback provisions that would create buffers between merchant plants and nearby buildings.

        Sen. Elizabeth Tori, R-Radcliff, wondered whether more review might be needed on the complex issue of power regulation.

        Rep. Jon Draud, sponsor of the House bill, expressed reservations about having the governor's moratorium extended, and said legislation is needed to make sure plants are built “with the public interest in mind.”

        Sen. Ed Worley, R-Richmond, questioned the value of merchant plants to Kentucky. He said the plants would employ few people and affect the environment while shipping all its power away from Kentucky.

       



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