Citizens Pack Hearing In Support of House Bill 1979; The Power Plant Certification and Siting Act

FOR IMMEDIATE RELEASE  
Contact: Dave Menzer or Grant Smith
February 22, 2001
Citizens Action Coalition 317-205-3535

 Today, at the Indiana Statehouse, citizens filled the house chamber to show support for legislation that would establish a public interest standard to determine the need for and appropriate location of new power plants. Entitled the “Power Plant Certification and Siting Act” H.B.1979, the bill had it’s first hearing in the Commerce, Economic Development and Technology Committee and more than a hundred citizens where on hand to show their support.

A vote on the bill was postponed until Monday afternoon to give legislators an opportunity to examine the issues.  The many citizens that where present hope the bill passes out of committee in its current form, and they want people to call their legislators and urge them to support the legislation. “It is clear that the next few days utility lobbyists will be contacting legislators, and it is essential that members of the public make their voices heard,” said Dave Menzer of Citizens Action Coalition.  

One of the bills primary sponsors was Representative Tiny Adams from Muncie who began the hearing with an appeal to his colleagues to support the legislation.  “I am not against economic development, but the question is how many power plants do we need and where should they go?”   The legislation is needed to answer these questions and provide statutory authority to regulators.  The Indiana Utility Regulatory Commission (IURC) has found that wholesale generators are public utilities under Indiana law on the theory that they “indirectly” provide electricity to retail customers. However, the IURC’s position has not been tested by the courts.  Until that happens there is still a question about their jurisdiction over these new merchant power plants. The legislation would codify that authority. 

Merchant power plants are natural-gas-fired generating stations that sell electricity on the wholesale market. They are not required to sell any power in Indiana. To date, the IURC has approved seven merchant plants and has nine more under review. As of January 2001, almost 5,000 megawatts have been approved. This new capacity is equivalent to 25% of the 1999 total power plant capacity. These plants represent more than the additional projected power capacity needed in Indiana by 2005 and nearly the amount of additional need projected by 2016, as projected by the State Utility Forecasting Group. 

Speaking in favor of the legislation where citizens from many counties around the state.  Madelyn Ferris of Delaware County said, “We need clarification for both citizens and regulators, and this legislation provides a frame work for the citizens to have input while protecting the future of the state of Indiana.”   

Gary Chambers, a farmer in Bartholomew County testified saying “I am concerned about the threat posed to Indiana’s natural resources of land and water by these merchant power plants.  We need to consider the short term, long term, and cumulative impacts of these plants and this legislation works to ensure responsible management of these resources.” 

Kirk Demaree of Hamilton County said “This law will protect families and communities...this is about due process.”  Dr. Helen Stuessy of Henry County said “Many of these merchant power plants have been sited on good farmland with no consideration of the comprehensive land use plans established by communities across the state.” 

Opponents of the legislation sited the fact that state regulators are already reviewing these plants with adequate scrutiny.  “Regulators have in fact been very vigilant in reviewing the applications of merchant power plant developers, requiring many of the elements addressed in the legislation be examined before they will approve a power plant.  However, citizens are concerned that there may be a legal challenge to their authority and therefore codifying these criteria will give them the clear authority which they are currently asserting over new power plant applications.” said CAC’s Grant Smith. 

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