Texas firm recommends denying Arkansas coal-fired plant

By The Associated Press

FULTON — The staff for Texas utility regulators has recommended a thumbs-down on a request from builders of a proposed $1.5 billion coal-fired power plant in Arkansas to pass along costs of the project to Texas customers.

For a second time, the staff of the Public Utility Commission of Texas made its recommendation in a filing Friday against Southwestern Electric Power Co.'s project near Fulton.

And, for a second time, the three-member commission is to consider the recommendation regarding the John W. Turk Jr. power plant July 3.

Keith Honey, manager of external affairs for Shreveport, La.-based SWEPCO, told the Longview (Texas) News-Journal he was hopeful the commission would side with the company.

"They're not obligated to go with staff recommendation, and we feel their decision is still very open," Honey said.

Honey said SWEPCO wants Texas ratepayers to pay about $500 million for the plant. Company officials estimate Texas' share would cost electric customers in that state about $59 million a year once the plant goes into operation.

SWEPCO serves 112,000 Arkansas customers and 340,000 customers in Louisiana and Texas.

The company, which is awaiting Arkansas approval of an air-quality permit, has begun site work on about 3,000 acres in Hempstead County. The utility won approval from the Arkansas Public Service Commission last year to build the 600-megawatt plant, but Arkansas opponents appealed the PSC decision to the Arkansas Appeals Court.

A federal case against the project, challenging its environmental effects, also is pending in U.S. District Court in the Western District of Arkansas.

For more information see Wednesday's Arkansas Democrat-Gazette.