Dear Editor:
In his LTE defending his vote for HB 1365 Rep King states that he “voted for the 10th Amendment and for State’s Rights.” I cannot see how caving into what amounts to EPA blackmail and extortion asserts state’s rights other than avoiding threatened “reprisals.” These reprisals are detailed in a letter to Rep King from EPA Administrator Mark Komp dated April 7, 2010: “After 24 months, the Federal Highway Administration is required to impose funding moratorium for all but exempt projects (safety, mass transit).” Contrary to what Rep King says the language in this bill is quite clear.
“ALL RATE-REGULATED UTILITIES THAT OWN OR OPERATE COALFIRED ELECTRIC GENERATING UNITS LOCATED IN COLORADO SHALL SUBMIT TO THE COMMISSION AN EMISSION REDUCTION PLAN FOR EMISSIONS FROM THOSE UNITS.”
That is ALL COAL FIRED plants in the state.
There were two alternatives that XCEL could have chosen to meet EPA requirements:
Install NOx scrubbers on their Coal Fired power plants at a cost of $133 Million
Convert to Natural Gas at a cost of $2.5 Billion
They did not require this state law to do either.
They chose number two, which also increases their cost of fuel by four times and will double or triple their customer cost of electricity. It will also require their customers to pay for the change over before a single kilowatt is generated. Either solution would have produced almost identical emissions. Right now there is no visible “smoke” from these plants.
Why would XCEL choose the more expensive option? XCEL is guaranteed a 10.5% return. Increase costs make more money for their shareholders while their customers are captive. As the old joke puts it, “Utilities are the only business where the CEO can increase his company’s earnings by redecorating his office.”
However this is not just about Denver and XCEL. Electricity is a mobile commodity through the grid. While we here on the western slope are the source of both Coal and Gas, we ship our energy elsewhere then buy back the power via transmission lines from the front range. This bill, that both Rep King and Senator Penry voted for, WILL massively increase our cost of Electricity. DMEA presently extracts $42 million a year from Delta and Montrose counties to buy power even though we could generate that power locally and more from our own coal and other sources such as mine methane, hydro, and biomass (Diseased trees). We have it all. Three main power grids come together in Delta. The coal trains from the mines go through Delta. You want jobs? How about building a power plant near Delta that could supply power for ourselves and the entire Western Slope and turn the grid around shoving power back to the Front Range? A potential $500 million dollar a year improvement in our economy and Jobs to build the plant, mine the coal, to operate and maintain that plant and a reduction in our utility bills instead of a three or four to one increase. On the other hand massively increased electricity costs drive away new business from locating in the state thus further smother job opportunities.
Rep King and Senator Penry have been in politics too long. They obviously serve the interest of Lobbyist not voters; they need to be voted out of office at the earliest possible opportunity.
Mike Mason
Cedaredge, Colo.
