Message-ID: <221496.1075860875544.JavaMail.evans@thyme> Date: Fri, 1 Mar 2002 08:28:57 -0800 (PST) From: kevin.hyatt@enron.com To: glen.hass@enron.com Subject: RE: ACC approval Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Hyatt, Kevin X-To: Hass, Glen X-cc: X-bcc: X-Folder: \Kevin_Hyatt_Mar2002\Hyatt, Kevin\Sent Items X-Origin: Hyatt-K X-FileName: khyatt (Non-Privileged).pst yeah I saw this. Wonder where they plan on getting the fuel supply????????= ??????? -----Original Message----- From: =09Hass, Glen =20 Sent:=09Friday, March 01, 2002 10:28 AM To:=09Hyatt, Kevin Subject:=09ACC approval FYI--Didn't know if you were tracking this plant, but thought you find the = ACC decision of interest. gh COMMISSION APPROVES BOWIE POWER PROJECT Requires Use of Solor Technology &= Groundwater Monitoring Program=09 PHOENIX - In a decision yesterday, the Arizona Corporation Commission appro= ved the Bowie Power Station proposed for eastern Cochise County in southeas= tern Arizona. The project, to be constructed in two 500-megawatt phases, is= a water-cooled power plant using a maximum of 6,000 acre-feet of groundwat= er per year when both units are operating continuously at full output. Sout= hWestern Power Group II is the project developer. The approval requires Sou= thWestern to install solar technology when they begin building the second p= ower block. This is the first merchant power plant that is required to inco= rporate solar technology as a core part of the total project. Merchant powe= r plants supply power to the wholesale market as opposed to power plants bu= ilt by a utility with the primary objective of serving its own customers. D= uring Tuesday's meeting, the Commission accepted the 22 restrictions placed= on the project by the Arizona Power Plant and Transmission Line Siting Com= mittee. After hearing from several representatives of the Bowie and Willcox= communities, the Commissioners approved an amendment offered by Commission= er Spitzer. The Spitzer amendment specifically addresses concerns by nearby= pistachio farmers that groundwater pumping could affect the surrounding wa= ter table. Summary of the Spitzer Amendment: The amendment requires SouthWe= stern Power Group II to establish and pay for a groundwater monitoring prog= ram that meets Arizona Department of Water Resources criteria. Once the pro= ject is operating, the SouthWestern will have to establish and make annual = contributions of $100,000 to a Groundwater Impact Mitigation Fund until the= fund reaches a balance of $500,000. Any business or individual who can pro= ve, through successful arbitration, that groundwater pumping has caused pro= perty or economic damage will be able to submit a claim for reimbursement. = SouthWestern will be required to maintain a total balance of $500,000 in th= e fund. Status reports on the program are to be filed with the Town of Bowi= e, the Pistachio Pass Irrigation District and the Cochise County Board of S= upervisors. The Groundwater Impact Mitigation Fund must be maintained for t= hree years after the plant ceases operation and is decommissioned. Commissi= oner Marc Spitzer said the amendment was prudent considering that the lasti= ng impact of the power project. "I proposed this amendment to answer the co= ncerns of the pistachio farmers and the irrigation district," Commissioner = Marc Spitzer said. "Although we heard testimony that the power plant's grou= ndwater needs would be less than if the land were farmed, I don't think you= can be too careful. We're making decisions that could affect an economical= ly depressed area for generations to come." Other Environmental Conditions:= Twenty-two conditions were imposed by the Arizona Power Plant and Transmis= sion Line Siting Committee. They include: ? Establishment of a monitoring p= roject and mitigation fund for ground subsidence and earth fissure monitori= ng. Subsidence is a potential side effect of groundwater pumping. Cracks, f= issures or dips can form in the surface of the earth because the water deep= underground that provided physical support is no longer there. ? Contribut= ions to the Bowie Fire District to enable it to acquire an additional emerg= ency services vehicle as well as funding of emergency response and hazardou= s materials training for firefighters. ? Making arrangements with local law= enforcement and the Cochise County Sheriff because the project will involv= e an increase in traffic and may result in the need for emergency responses= by local law enforcement. This was an amendment sponsored by Commissioner = Jim Irvin. ? Prior to construction of the facility, SouthWestern must provi= de the Commission with a technical study showing that sufficient transmissi= on capacity exists to accommodate the output of the plant and the effect of= its output on reliable operation of the electric grid. ? Conditions requir= ing compliance with air and water quality standards imposed by the Arizona = Department of Environmental Quality and the Arizona Department of Water Res= ources. Additionally, the applicant will have to participate in and comply = with all standards for safe, reliable power delivery. "I was pleased to sup= port this project, in part because it includes solar technology as a key co= mponent of the whole project. The level of support from the local community= was also impressive. Les Thompson, Chairman of the Cochise County Board of= Supervisors indicated that Bowie has one of the highest tax rates of any A= rizona community," Chairman Bill Mundell explained. "The residents and busi= ness people were very excited about the tax and economic development benefi= ts of having the power plant in their community. Additionally, the project = will bring several hundred construction jobs to Bowie and Willcox and, ulti= mately, the 30 or 40 people needed to run the plant." Commissioner Irvin vo= ted in favor of the project, saying: "I do believe the need for this projec= t was established in the record. Further, I believe the project is in the p= ublic interest and meets the balancing test." He was referring to the sitin= g statute that requires the Commission "to balance, in the broad public int= erest, the need for an adequate, economical and reliable supply of electric= power with the desire to minimize the effect thereof on the environment an= d ecology of this state." (Arizona Revised Statutes ? 40-360.07, subsection= B.) For more information about recent power plant sitings, visit the Arizo= na Corporation Commission's website at . =09 =09 =09 =09