------- Forwarded Message Follows ------- Date: Tue, 10 Feb 1998 10:39:31 -0500 (EST) To: "Saunders-Norm" <osprey@mtolympus.ari.net> Subject: Air & Water Quality From: "Jack C. Leighty/Susan J. Noble" <jleighty@chesapeake.net> Norm: Chalk Point is on the Patuxent. Would any of the mdosprey subscribers be interested in this? It's quite long for a discussion list. Pepco Might Use Higher-Sulfur Coal Change in Standard Raises Air-Quality Questions By Martha M. Hamilton Washington Post Staff Writer Friday, February 6, 1998; Page G01 Potomac Electric Power Co. has changed its requirements for coal, opening the possibility that it may begin using cheaper, higher-sulfur coal to produce electricity for the Washington area. The move by Pepco to change bid specifications for coal -- which accounts for about 90 percent of the fuel the utility uses to generate power -- has touched off concerns among environmentalists that increased competition in the utility industry could result in dirtier air. Pepco told coal suppliers in January that it was expanding the types of coal it would consider buying. The objective, according to Susann Felton, Pepco's vice president for fuels, was "a least-cost strategy for the company while meeting all the clean-air and other regulations." Pepco's new specifications for coal would affect only two of six power plants -- Chalk Point in Prince George's County and Morgantown in Charles County, both of which have two coal-fired units each. Even if the utility buys higher-sulfur coal, workers and nearby residents shouldn't notice any change in the way the air looks or smells, Pepco officials said. The decision to change the coal specifications comes as the electric power industry is undergoing radical change. More than a dozen states have rewritten the rules that once protected regional monopolies to now allow power suppliers to compete for residential and business customers, and the District and some states -- including Maryland and Virginia -- are considering doing so. The potential benefits to consumers are lower prices and innovation, according to supporters of deregulation. But environmentalists have warned that deregulation needs to be designed to prevent potential damage to the environment that might result from increased use of cheaper, dirtier fuels. State environmental regulations cap the amount of sulfur dioxide in coal burned at Chalk Point and Morgantown at 3.5 pounds per million BTUs (a measure of energy). Since 1995, Pepco has bought only coal that contained 2.43 pounds of sulfur dioxide per million BTUs, but now it says it will consider buying coal with as much as 3.5 pounds per million BTUs to lower costs. "To the best of our knowledge, every utility in the nation is looking at the same options," she said. Fuel costs represent about a third of the costs customers pay for power, and customers would receive the benefit of lower costs, she said. Pepco's new requirements raise the "dangerous specter" of more air pollution from utility competition, said Frank O'Donnell, executive director of the Clean Air Trust, a nonprofit environmental advocacy organization. The Clinton administration is working on a proposed approach to deregulation that has been hung up, in part, by a debate over the exte nt environmental objectives should be incorporated in its plan, according to several administration officials. The amount of sulfur dioxide in coal is capped under provisions of the Clean Air Act. But the cap allows plants to use coal containing higher levels of sulfur dioxide and oxides of nitrogen if they can buy offsetting reductions in emissions from other utilities. Felton said Pepco had adopted the lower sulfur dioxide standard at the Chalk Point and Morgantown plants originally to be on the safe side and ensure they would meet the targets. The Clean Air Act amendments were aimed at the nationwide problem of acid rain and would prevent any worsening of that problem no matter what kind of coal Pepco buys, said David Hawkins of the Natural Resources Defense Council. But, according to Hawkins and other environmental activists, higher-sulfur coal might result in another air quality problem -- higher emissions of particles. Sulfur dioxide is converted in the air into sulfate particles, which "create a haze and reduce visibility. If you breathe them, they contribute to serious health effects, including premature death," he said. Pepco officials said they believe concerns that their new standards for coal will degrade air quality are off base. c Copyright 1998 The Washington Post Company =============== Norm Saunders Colesville, MD osprey@ari.net