Groups square off over plans to reopen coal plant

FAIRBANKS, Alaska (AP) — Four environmental groups that are contesting a permit to restart the Healy Clean Coal Plant are getting heat from supporters who say the project means jobs and more affordable energy.

More than 100 people showed up Wednesday at the headquarters of the Northern Alaska Environmental Center in Fairbanks to show their support for restarting the plant has been idled since 2000. They carried signs reading "Support Working People" and "No to Environment Wackos," according to the Fairbanks Daily News-Miner (http://blogshots.org/is.gd/MDYFUV ).

Supporters of the project were met with an equal number of opponents with signs reading "Climate Change is Real" and "Stop Subsidizing the Gold Mines on our Backs."

At issue is a decision by the Northern Alaska Environmental Center, the Denali Citizens Council, the Sierra Club and the National Parks Conservation Association to appeal an air quality permit issued for the power plant.

The utility claims the appeal is blocking the utility from moving ahead with plans to reopen the plant, which was finished in 1997. It operated for only three years before being closed. President Brian Newton said Wednesday's event was planned to raise awareness about the utility's stance.

"We're here requesting that those four environmental groups drop their petition. Simply, they're costing our rate-payers money. If they would drop their petition today, we could move forward on Healy Clean Coal and save our members millions of dollars — that's why we're here," Newton said.

He said reopening of the coal plant has the support of the community.

"Our members a month ago told us they wanted lower energy costs and the price of electricity was killing this community. So we're responding," Newton said.

But outgoing NAEC executive director Karen Max Kelly said the permit appeal was filed only after the utility "walked away" from negotiations that would have allowed it to open the plant right away if it agreed to invest in energy efficiency measures.

The agreement also would have required the utility to agree to have a "cleaner energy source" in place within 20 years.

"They're asking us to back off on the air quality permit. They had that in their hands, us not challenging their air quality permit. They had that in their hands. If they were serious about providing cheap power for Fairbanks immediately, they would have said 'yes' right then and there," Kelly said.

The clean coal plant cost more than $300 million to build and is owned by the Alaska Industrial Development and Export Authority, a public state corporation. The project was funded with a $120 million Department of Energy grant, $150 million from AIDEA, $25 million from the Alaska State Legislature and $10 million plus in-kind contributions from GVEA and Usibelli Coal Mine.

The utility hopes to purchase the plant for $95 million.

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Information from: Fairbanks Daily News-Miner, http://blogshots.org/www.newsminer.com

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