Oklahoma regulators reject application for coal-fired plant

? State regulators on Monday rejected an application by utility companies to build a coal-fired power plant in northern Oklahoma.

The three-member Oklahoma Corporation Commission, with one dissenter, expressed their opposition to an application from Public Service Co. of Oklahoma, Oklahoma Gas & Electric Co. and the Oklahoma Municipal Power Authority.

The plant was estimated to cost about $1.8 billion. The 950-megawatt plant was planned for Red Rock in Noble County about 80 miles north of Oklahoma City.

Commissioner Jim Roth pressed for a flat denial of the Red Rock application during Monday’s hearing. He said the utilities had not proven they had sufficiently explored alternatives.

“The record is insufficient to establish that reasonable alternatives, such as demand reduction programs, renewable power options or existing generation facilities, have been considered as it is required” by state law, Roth said.

Commissioner Bob Anthony, who voted against the denial, said he was concerned about future costs to ratepayers.

Matt Skinner, commission spokesman, said a decision will not be final until a written order is filed, probably next week, requiring a formal vote.

Anthony said the utilities had demonstrated a need for increased power and he was focused on the effect on consumers by denying the application.

“If they go to the market and get some of the leftover, high-priced power from out of state, that is not going to be a good solution for consumers.”

The plant was opposed by natural gas giant Chesapeake Energy Corp. and consumer and environmental groups.

“We know the decision was reached after a thoughtful, thorough and fair review of the economics and environmental facts,” said Tom Price Jr., Chesapeake vice president. “This certainly is great news for all Oklahomans and bodes well for future generations of Oklahomans.”

PSO President Stuart Solomon said the company still believes Red Rock would have been good for its customers, but it will abide with the decision.

“We still need additional power supplies to support our customers’ needs, so we will quickly review our options and make another proposal to the commission,” Solomon said.

State Treasurer Scott Meacham came out publicly against the proposal, saying he was concerned about global warming and its impact on agriculture and the state’s future economy.

In opposing the request, Chesapeake said natural gas burns cleaner than coal and is in abundance in the region, while the coal would have to be brought in from Wyoming.

Utility officials said coal is far less expensive than natural gas, modern coal-fired plants burn much cleaner than older plants and it is best not to rely too heavily on any one power source, such as natural gas.

On Monday, Commission Chairman Jeff Cloud deferred to Roth’s motion to deny the application after first proposing that the order include a statement that there is a need for electric generating capacity.

Public Service, a subsidiary of American Electric-Power Company, said it needs to generate 450 megawatts of electricity by the year 2012. Commissioners decided to address the needs issue in a separate order.