Arkansas regulators appeal rejection of coal plant

LITTLE ROCK, Ark. - A state licensing commission said Wednesday it is appealing a court ruling rejecting a permit the commission issued for a coal-fired power plant in southwestern Arkansas.

The Arkansas Public Service Commission said it petitioned the Arkansas Supreme Court to review the state Court of Appeals' ruling that would force Southwestern Electric Power Co., a unit of American Electric Power, to start over in its effort to obtain a permit for the $1.6 billion coal-fired plant the company hopes to build.

"The commission hopes that the Arkansas Supreme Court will review this case, not only because it is a matter of first impression, but also due to the very important public policy issues involved regarding how Arkansas utilities build and generate electricity for Arkansans," Public Service Commission Chairman Paul Suskie said.

The appeals court last month granted a request by landowners to send the company back to the beginning of the permit process. The utility also has appealed the ruling, saying the court ignored decades of procedural rules in revoking the permit.

The court ruled that the public service commission did not follow the law when conducting hearings about the electric-generation plant near Fulton, in Hempstead County. The ruling also criticized the utility's site-selection process.

Suskie that the panel has used the same procedures for considering power plants in separate proceedings since 1973.

"As it stands now, the Court of Appeals decision will impact the siting of all future generating plants subject to the (commission), whether these plants generate electricity from nuclear, natural gas, coal, wind, solar, hydro, biomass, geothermal or other renewable power sources," Suskie said.

Landowners near the plant and environmental groups sued the commission in an effort to block the facility from operating. The landowners, including members of the Hempstead County Hunting Club Inc., argued the plant will produce greenhouse gases and will damage nearby wilderness areas.

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