Duke ready to start Cliffside construction

CLEAN COAL? This environmental group lobbied in support of clean coal Wednesday before a campaign appearance by Democratic presidential candidate John Edwards at Limestone College.

RALEIGH, N.C. (AP) - Duke Energy Corp. is ready to begin construction of a new coal-fired power generator in Rutherfordton County, N.C. just across the state lne from Cherokee County, S.C. as soon as state environmental regulators sign off on its air pollution limits.

That approval is expected soon, but opponents to the project haven't given up.

Most expect the permit will be granted, but the legal challenges and appeals promised by environmental groups who oppose the upgrade at Duke's Cliffside plant could drag on for more than a year. In that time, the cost of the plant - which now stands at $2.4 billion, up from $1.53 billion in March - is sure to rise again.

''We're committed to opposing this plant,'' said Gudrun Thompson, a staff attorney for the Southern Environmental Law Center. ''Certainly delay does help the cause. Every day increases the risk to the utility, the shareholders and the (customers).''

Opponents hope to delay the project, increasing it's costs, until the Charlottebased utility no longer considers it a cost-effective solution to meet the growing power needs of its customers.

''The escalation of cost for new power-plant construction has been mind-boggling in the past six to 12 months,'' said Gary Hunt, president of Ventyx Advisors, a California energy consulting firm. ''That's forcing everyone back to the drawing board, because it's not the least cost option anymore.''

The latest opponents to join the cause are Lt. Gov. Beverly Perdue and State Treasurer Richard Moore, who are both seeking the Democratic nomination for governor in May's primary election. Perdue and Moore have urged the state's Division of Air Quality to deny the air-quality permit, citing concerns about the new plant's environmental impact.

Duke is shutting down four smaller coal-burning plants, all built in the 1940s, as part of the upgrade at Cliffside. The company originally sought a permit for two new 800-megawatt coal-fired units, but won permission from the North Carolina Utilities Commission to build only one generator at the site.

Last year, the Division of Air Quality granted Duke a draft permit and is now reviewing changes based on public comments.

Carbon dioxide is not currently regulated at the state or federal level. The new Cliffside generator would emit 6.25 million tons a year of the gas, or roughly the same amount as 1 million automobiles.

Duke is adding as many as 60,000 new customers a year to its existing base of 2.3 million in the Carolinas. The company is also seeking to build two natural gas-fired power plants and a new nuclear plant.