Electric generators met the record demand for electricity caused by the heat wave last week, but that may not be the case in the future if a rule proposed by the Department of Environmental Protection is not changed to prevent the premature retirement of power plants needed to meet that demand, according to Douglas L. Biden, President of the Electric Power Generation Association (EPGA).

Biden, Locals 29, 459 and 1600 of International Brotherhood of Electrical Workers, the Pennsylvania Coal Association and other environmental groups presented comments at three hearings this week by the Environmental Quality Board on a rule proposed by the DEP to reduce mercury emissions from coal-fired power plants.

“People used air conditioners and fans to cope with the heat wave last week,” said Douglas L. Biden, President of the Electric Power Generation Association. “Now imagine trying to meet that record demand with 20 percent less coal-fired generating capacity. That’s how much capacity is threatened with closure because of the way DEP wants to reduce mercury emissions from power plants.”

“The issue is not whether to significantly reduce mercury emissions, but how to do it,” said Biden. “We, and a coalition of labor and business organizations, support a change in DEP’s rule to include the mercury reduction plan in bipartisan Senate and House legislation that would reduce mercury emissions from power plants by 86 percent through a cap-and-trade program, while protecting the public health and the environment.

“The legislation reduces and then caps mercury emissions,” explained Biden. “It provides incentives to power plant owners to over-control mercury emissions at plants where it would be cost-effective and trade the extra mercury reductions to other plants where maximum reductions may not be economically feasible.”

The rule proposed by DEP does not include a trading program, but mandates mercury reductions in a way that threatens some plants with closure because it requires all plants to achieve the same level of reductions.

“Pennsylvania has more than 30 smaller generating units that are at risk of premature retirement because it may not be economically feasible to install advanced mercury controls at these facilities,” said Biden. “Unfortunately, these plants represent 20 percent of Pennsylvania’s coal-fired generating capacity and are the same plants that give electric generators the ability to produce more electricity during periods of peak demand, like the heat wave last week.

“Without this capacity, there is considerable doubt whether we could have met the record peak demand experienced during the heat wave without emergency load curtailments,” said Biden. “Because it can take five years or more to replace coal-fired generation, these are serious reliability and public safety issues that have not yet been addressed by DEP.”

Pennsylvania Public Utility Commission Chairman Wendell F. Holland has also expressed concerns about the cost implications of DEP’s rule saying the proposed rule has the potential to cause a reduction in electric generating capacity in the state which could have a negative effect on an already volatile energy market.

PJM, the operator of the regional electricity grid, made similar comments when it noted that “new limits on mercury emissions from coal-fired power plants now under consideration … may be an important factor in potential future (plant) retirements.”

“In the last few months, Pennsylvania electric generators have announced they will install almost $3 billion worth of air pollution controls to reduce sulfur dioxide, mercury and other pollutants,” said Biden. “All we are asking for is a responsible mercury reduction plan that allows us to make cost-effective investments in advanced controls without jeopardizing electric reliability, and without causing significant electric cost increases or the loss of family-sustaining jobs. These goals can be achieved without compromising public health or the environment.”

Three representatives of the International Brotherhood of Electrical Workers also testified this week.

“The bottom line is this – we need a cap and trade program in this regulation to help electric generating companies recover their investments in the advanced air pollution controls they need to reduce mercury emissions,” said Victor Fiore, President of IBEW Local 29, “If they cannot recover their investments, they have to make up their budgets one way or another at these plants and in that process the most expendable items are employees, benefits and the smaller power plants.

“I’ve done my homework on this issue. I met with DEP Secretary McGinty twice, talked to my companies and went to one of the hearings held by Sen. Mary Jo White in Harrisburg,” said Fiore. “When you listen to all the testimony and talk to the people I have, several facts are clear—

· Studies show there is no difference in the environment between zeroing out ALL mercury emissions from ALL U.S. power plants and adopting the federal Clean Air Mercury Rule with a cap and trade program;

· Companies will not put advanced air pollution controls on small, old plants and if they cannot put these controls on in a cost-effective way they will be shut down and we lose jobs;

· Companies will bring power in from other states to make up the difference and that means jobs will move to those other states; and

· Companies will switch to burning coal from other states because it has less mercury than the coal we have here in Pennsylvania and that means we lose jobs again in our coal mines and the drivers in the trucks that haul the coal to our power plants.”

Robert Ashbaugh, Business Representative of IBEW Local 459, said power plants statewide have already reduced mercury emissions by 33 percent between 1999 and 2004 and plants that he represents – Keystone, Conemaugh and Homer City—have reduced their mercury emissions by 47 percent since 2000.

“While our plants had a 47 percent reduction in mercury emissions, those reductions did not show up at a monitoring station at Portage in Cambria County, directly down wind from our plants,” said Ashbaugh. “In fact, the 33 percent reduction in mercury emissions from power plants across the state did not make any difference to DEP’s mercury monitors.

“The reason is simple—mercury emissions from power plants make up only 1 percent of global mercury emissions and mercury travels hundreds of miles before it falls to the ground. Mercury is a national and international problem that should be treated that way. We can’t put a dome over Pennsylvania and adopt our own regulations thinking that will clean up the air.

Andrew R. Wolfe, President-Financial Secretary for IBEW Local 1600, told the Board, “DEP’s efforts will put Pennsylvania’s industry and consumers at a disadvantage without any measurable improvements in public health or the environment. Surely a rule that would have such profound impacts on the economy and quality of life in Pennsylvania should at least produce benefits for Pennsylvanians that match or outweigh the costs.

“The DEP has not been able to produce any credible evidence that a state-specific rule will achieve any additional benefits beyond the federal rule.”

The Pennsylvania Federation of Sportsmen’s Clubs, PennFuture and individuals testified at the three hearings.

Melody Zullinger, of PFSC, said, “Today, Pennsylvania’s mercury warnings cover every lake and stream in the state – warning people to limit or avoid eating certain species of fish because of the dangers of mercury exposure. DEP is on the right track to address this serious issue, and has developed a strong plan for requiring the local reductions in mercury pollution that are needed to protect our treasured fish and wildlife species.

“We want a guarantee that mercury pollution is going to go down significantly in our own backyards, right here in Pennsylvania.”

The public comment period for the proposed mercury regulation ends August 26.

NewsClips: Speakers Back Proposal to Cut Back Mercury Emissions in PA

State’s Mercury Reduction Plan Debated at Public Hearing

Mercury Restrictions Draw Mixed Reactions

State Mercury Plan Draws Support

7/28/2006