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The Cincinnati Enquirer
www.enquirer.com
Cinergy undertakes anti-smog plan
Project to cost $700 million
By Mike Boyer
The Cincinnati Enquirer
September 26, 2000
Cinergy Corp. is embarking on one of the largest construction
projects in its history, installing more than $700 million
in pollution control equipment to reduce nitrogen oxide
emissions at its generating plants.
The controls, including installation of up to 11 selec
tive catalytic reduction units, stem from a federal appeals
court ruling earlier this year. The decision enforced 2-year-old
Environmental Protection Agency rules limiting smog-creating
nitrogen oxides from coal-burning Midwest utilities starting
in 2004.
The utilities had challenged the new rules, questioning
the impact of travel ing pollution on Northeast states and
the cost of the controls.
The Edison Electric Institute, which represents investor-owned
utilities, estimates the new EPA controls will cost utilities
tens of billions of dollars. Columbus-based American Electric
Power has estimated the new controls will cost it $1.6 billion
and Louisville-based LG&E said it will spend $500 million.
“This plan delivers on our ongoing commitment to the environment
and will result in a significant reduction in our nitrogen
oxide emissions,” James Rogers, Cinergy president and chief
executive.
Installation of the selective catalytic reduction units,
which require structures up to 20 stories high, is expected
to employ 2,000 construction workers over the next few years.
Most of those workers are expected to come from communities
near the plants, Cinergy said.
The investment won't have an immediate impact on rates
paid by Ohio customers. Under Ohio's electric deregulation
law that takes effect Jan. 1, residential customer rates
are frozen until 2005. After that date, cost recovery will
depend on electricity prices at that time, said Steve Brash,
Cinergy spokesman.
He said the utility is considering whether to seek recovery
of the costs in Indiana. It's unclear what, if any, impact
the investment will have on rates at Cinergy's Kentucky
subsidiary, Union Light, Heat and Power Co., Mr. Brash said.
Union Light buys its power wholesale from Cinergy's Cincinnati
Gas & Electric unit. But CG&E's generation will
move to an unregulated subsidiary under deregulation.
Previously, Cinergy said the new controls would require
$10 million in annual operating costs.
The SCRs, built by Siemens/Westinghouse, are installed
at the top of the generating plant boiler in front of the
smokestack. Acting as giant catalytic converters, the units
use chemical reactions to convert the nitrogen oxide into
emissions of nitrogen, water and oxygen.
“This construction will be an engineering challenge,”
said William F. Tyndall, vice president of environmental
affairs. The engineering work is being done by Cinergy's
staff and the Chicago firm of Sargent & Lundy.
Work on installation of four SCRs began within the last
month at three plants:
• Cinergy's East Bend plant near Rabbit Hash.
• The Gibson plant near Owensville, Ind.
• Miami Fort near North Bend.
Cinergy is also studying SCRs for its Cayuga, Ind. power
plant and Zimmer plant near Moscow.
Cinergy said it is considering other control technologies
for its Beckjord plant in New Richmond; Gallagher plant
in New Albany, Ind.; and Wabash River plant near West Terre
Haute, Ind.
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