Indiana Gasification Contract: Lawmakers should repeal it.
Increased scrutiny on Leucadia's proposed coal gasification plant in Rockport, IN has resulted in an interesting decision by an Indiana court, and hopefully a second look by state legislators.
"After a recent ruling by the Indiana Court of Appeals blocking a synthetic natural gas contract on a technicality, consumer groups are calling on the legislature to repeal the deal entirely.
Under the contract, the Indiana Finance Authority would purchase synthetic natural gas from Leucadia National Corporation's proposed coal gasification plant in Rockport, Indiana, then sell it on the wholesale market. Profits would be split 50-50 between Leucadia and the state, and consumers would see a break on their bills. If the gas were sold at a loss ratepayers would pay for the difference."
Citizens Action Coalition's Kerwin Olson explains the problem with the legislation passed by Indiana lawmakers to shore up this project.
"You have legislators kind of hiding behind the fact that natural gas prices were high at the time, so this seemed like a good deal. But consumer protections were eliminated, exposing the ratepayers of the State of Indiana to enormous risk, irrespective of what the price of gas is. So, this is just bad consumer law that needs to go."
Read the whole story here: http://www.publicnewsservice.org/index.php?/content/article/29352-1