Click here to read more about the detrimental health and environmental effects of dirty coal.


Power Finance & Risk

LS Delays Longleaf Financing

07/10/2008

LS Power is icing financing plans for its 1.2 GW Longleaf Energy Station in Early County, Ga., until next year as it appeals a state court ruling that has remanded the plant's permit. "We'd been hoping for financing this year, but it will most likely be next year," says Joe Esteves, managing director in New York. "We had to basically stop the EPC contracts right now. There's no sense in getting [banks] to come up with a firm bid when we can't act on it."

The development shop and its joint venture partner Dynegy had planned to arrange construction loans by this summer (PFR, 3/20). But last week, a Georgia Superior Court judge threw out the pulverized coal plant's permit on the grounds it did not limit carbon dioxide emissions. Referencing this ruling, schools and hospitals with boilers for heating may need to go through similar permitting requirements based on their emissions, says Michael Vogt, project manager in St. Louis.

"This has a substantial impact on the regulatory industry in the state of Georgia and broader if someone else were to take a similar construct that this judge took."

If the appeal is successful and financing is arranged next year, the plant would likely become operational in 2013 instead of the original target of 2012. But unlike previous project financings by LS for Plum Point and Sandy Creek,Longleaf will be fully contracted from the outset. "It should be very well contracted at the time of financing," says Esteves.


Loans Program for Coal Plants Suspended:

http://www.washingtonpost.com/wp-dyn/content/article/2008/03/05/AR2008030500596.html

You may have noticed some of the recent news stories related to the Rural Utilities Service's funding of new coal-fired power plants.

Historically, the U.S. Department of Agriculture's "Rural Utilities Service" has helped finance power plant projects and transmission lines to provide electricity to rural areas. What began as a legitimate service to rural areas in the 1930s has become a federal boondoggle, with USDA pouring billions of dollars into misguided, polluting coal projects.

On February 19, 2008, USDA notified the Southern Montana Electric Cooperative that it would not loan money to help finance the cooperative's new "Highwood" coal plant near Great Falls. Not only that, USDA announced in this letter that it would no longer finance any new coal plants in 2008 or 2009, period.

This set off a chain reaction, and on February 29, 2008, Associated Electric Cooperative in Missouri announced that it was abandoning a new coal project, in part because their USDA loan had fallen through. Similar situations exist in Arkansas, Kentucky and Illinois.

Visit http://clubhouse.sierraclub.org/conservation/energy/coal/coal-rus.aspx for a background fact sheet on this issue.

Local News:


  • BusinessWeek: Business groups fight Georgia coal plant ruling
    http://www.businessweek.com/ap/financialnews/D928DII81.htm

  • Atlanta Journal-Constitution: An Early County view of proposed coal-fired plant
    http://www.ajc.com/search/content/opinion/stories/2008/07/24/coaled.html

  • Atlanta Journal-Constitution: Clear the air: Coal not a healthy investment
    http://www.ajc.com/search/content/opinion/stories/2008/08/05/coaled.html

  • CNN.com: How air pollution hurts your kids' lungs
    http://www.cnn.com/2008/HEALTH/04/21/hm.dirty.air/index.html?iref=newssearch

  • Atlanta Business Chronicle: Dynegy Longleaf plant gets OK
    http://www.bizjournals.com/atlanta/stories/2008/01/07/daily39.html

  • Houston Chronicle: Dynegy partnership one step closer to Georgia plant
    http://www.chron.com/disp/story.mpl/headline/biz/5446830.html

  • Creative Loafing: Judge grants permit to first coal-powered plant in 20 years
    http://blogs.creativeloafing.com/freshloaf/2008/01/11/judge-grants-permit-to-first-coal-powered-plant-in-20-years-opponents-plan-to-appeal/

  • Atlanta Journal-Constitution: Judge rules for new coal plant in South Georgia
    http://www.ajc.com/search/content/metro/stories/2008/01/13/coal0113.html

  • The Institute for Southern Studies: Facing South: Appeal planned over Georgia coal plant permit
    http://southernstudies.org/facingsouth/2008/01/appeal-planned-over-georgia-coal-plant.asp

  • Atlanta Journal-Constitution: Groups battle power plant: Environmentalists argue that state's permit for coal facility in southwest Georgia should be pulled.
    http://www.ajc.com/business/content/printedition/2007/11/30/coal1130.html

  • Albany Herald: Power plant challenged: Longleaf Energy Station in Early County would be Georgia’s first new coal-fired power plant in 25 years
    http://www.cleanenergy4ga.org/albanyherald113007.html

  • Macon Telegraph: Judge asked to send permit for power plant back to state EPD
    http://www.cleanenergy4ga.org/macontelegraph113007.html

  • Creative Loafing: Poor, polluted - and dead
    http://atlanta.creativeloafing.com/gyrobase/Content?oid=oid%3A307517

  • Atlanta Journal-Constitution: New Sources of Energy Not Needed
    State of Georgia needs to follow the state energy strategy first.
    http://www.ajc.com/opinion/content/opinion/stories/2007/09/15/conserved_0916.html

  • Atlanta Journal-Constitution: Proposed coal-fired plant in Early get's state's OK
    The state Environmental Protection Division gave the go-ahead this week for a new coal-fired power plant in southwest Georgia. It would be the state's 11th, and the only one built by an out-of-state energy company.
    http://www.cleangeorgia.org/net/content/page.aspx?s=52508.0.101.19069

  • The Albany Herald: EPD approves Early coal plant
    Environmental groups from across the state have campaigned against the plant's construction for the last six years.
    http://www.cleangeorgia.org/net/content/page.aspx?s=52509.0.101.19069

  • Savannah Morning News: Governor urged to stop new coal plant
    State environmental groups urge Governor to halt new coal plant.
    http://savannahnow.com/node/258685

  • Atlanta Journal-Constitution: Can't afford ills of more dirty plants - Plan clouds clean energy efforts
    http://www.cleanenergy4ga.org/ajc1025.html

  • Making Sense of the "Coal Rush": The Consequences of Expanding America's Dependence on Coal (.pdf)
    Power producers are pushing to build 150 new coal-fired plants. This "coal rush" would increase U.S. global warming pollution at a time when aggressive action is needed to reduce emissions.
    MakingSenseoftheCoalRush-US.pdf

    National News:


  • Associated Press: US company's coal plant plans are in center of global warming debate
    http://www.iht.com/articles/ap/2007/05/26/business/NA-FIN-US-Coal-fired-Dispute.php

  • Las Vegas Sun: Pollution-free park plea: National Park Service warns of risks from coal-fired plant near Great Basin
    http://www.lasvegassun.com/sunbin/stories/sun/2007/may/19/566638854.html

  • Washington Post: Federal Loans for Coal Plants Clash with Carbon Cuts
    http://www.washingtonpost.com/wp-dyn/content/article/2007/05/13/AR2007051301105.html

  • Market Watch: Kerry offers bill to ban new coal plants with old tech
    http://www.marketwatch.com/news/story/kerry-offers-bill-ban-new/story.aspx?guid=%7BCD83E84A-4ACF--4619-9D6D-E9129BA6A019%7D

  • Energy Publisher: Dynegy complete LS Power transaction
    http://www.energypublisher.com/article.asp?id=8790

  • MSNBC: Deadly Power Plants? Study fuels debate
    http://www.msnbc.msn.com/id/5174391/

    SUCCESSFUL BATTLES ACROSS THE NATION:


  • The Jacksonville Business Journal: State Denies FP&L's Bid for Coal-Fired Plant
    http://jacksonville.bizjournals.com/jacksonville/stories/2007/06/04/daily17.html

  • The Dallas Morning News: U.S. may block TXU coal plants
    http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-txucoal_27bus.ART.State.Edition1.

  • San Antonio Express News: TXU's new plan elicits wariness
    http://www.mysanantonio.com/news/metro/stories/MYSA031207.01A.TXU.36a768d.html

  • New York Times: TXU Announces Plans for 2 Coal Plants Designed to Be Cleaner-Burning
    http://www.nytimes.com/2007/03/10/business/10coal.html

  • The Dallas Morning News: Cleaner Coal planned for Texas
    http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-txuigcc_10bus.ART0.State.Edition1.

  • Grist: Let's Call the Coal Thing Off
    http://www.grist.org/news/muck/2007/03/09/nocoal/

  • International Herald Tribune: TXU cancellation of coal plants leaves gap in Texas energy future
    http://www.iht.com/articles/2007/03/08/business/txu.php

  • New York Times: In Big Buyout, Utility to Limit Coal Plants
    http://www.nytimes.com/2007/02/25/business/25coal.html

  • The Huffington Post: Local Ranchers Move to Block Coal Plants in Texas
    http://www.huffingtonpost.com/2007/02/21/local-ranchers-move-to-bl_n_41746.html

  • The Dallas Morning News: Texas cool to confront global warming
    http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/090306dnproglobal.3350a24.html

  • Environmental Defense: TXU Plan Threatens Progress on Climate
    http://www.environmentaldefense.org/article.cfm?contentID=5404&campaign=583