State regulators reject bid to block coal plant

State regulators this morning rebuffed a bid by environmentalist groups to bar Duke Energy from building a coal-burning power plant west of Charlotte.

The N.C. Utilities Commission upheld its March decision to allow Duke to build one 800-megawatt unit. The commission in March had rejected Duke’s request to build two units. Environmentalists subsequently asked the regulators to reconsider their decision allowing one unit.

The environmental groups do not expect to appeal today's ruling to the state court of appeals. But leaders of the groups still maintain that the proposed Cliffside project should be stopped because it would contribute to global warming emissions and pollute the environment.

The commission’s ruling shifts the battle over Duke’s proposed Cliffside project to the N.C. Department of Environment and Natural Resources, the agency that is considering an air quality permit for the proposed power plant. When the draft permit is issued later this year, the organizations will likely contend that the Cliffside project is not using the cleanest technology available and is falling short of federal air quality standards.

“We’re using all available legal tools to stop a dirty power plant from being built,” said Michael Shore, a senior air policy analyst at N.C. Environmental Defense. “Everything is an attempt to delay and hopefully prevent construction.”

In their appeal to the utilities commission, the environmentalists contended that the Cliffside project is not the most economical choice, but rather the “worst-cost” option. Last year, the capital cost of two Cliffside units was estimated at $2 billion, but this year Duke revised the costs, saying that building one unit would cost $1.8 billion.

The cost of building, financing, maintaining and operating power plants is paid by utility customers through electric rates.