PSC opposes proposed greenhouse gas regulations

The Montana Public Service Commission recently went on record unanimously opposing a federal agency’s proposed rules to restrict greenhouse gas emissions for new power plants, particularly coal-fired generators.

In a two-page letter to the U.S. Environmental Protection Agency, the five-member commission said the EPA’s proposed rules for New Source Performance Standards would make it impracticable to construct any new coal-fired electrical generation in the U.S.

“As members of the regulatory body responsible for ensuring that Montanans have access to a safe, reliable and affordable energy supply, we have grave concerns about your agency’s proposed rules,” the commission’s April 23 letter says.

The proposed rules would limit carbon dioxide emissions from new power plants to 1,000 pounds per megawatt-hour of electricity. Existing plants and new generators permitted to begin construction in the next year are exempt.

The federal agency believes new natural gas combined-cycle power plants would meet the draft standard, as would most existing natural gas plants. The Montana Public Service Commission has concerns, however, that the new rules would stifle efforts to improve coal technology.

“Considerable progress has been made to making coal-fired generation more efficient and cleaner. Incremental progress is important, and a total transformation of coal-fired technology cannot be achieved overnight,” the Commission’s letter states. “By establishing standards such as those envisioned by the NSPS, we worry that virtually all investment in further refining coal technologies will evaporate.”

The commissioners called the EPA rule “unworkable,” saying it fails to account for variations in types of coal, coal plants and their emissions profiles.

For more information, visit online at www.psc.mt.gov.