News Clips
Federal Regional Haze Plan Will Cripple Oklahoma ManufacturersBy
2011-04-13
“In short, the EPA plan will cost ratepayers billions of dollars more than it should. Manufacturers won’t have the funds necessary to invest in their facilities and, as a result, they could move jobs to other states or countries or be out-performed by facilities in those locations,” said Tom Schroedter, executive director of OIEC, an association of companies with facilities in Oklahoma. “Furthermore, the state’s environmental regulatory agency, DEQ, has proposed a much more cost-effective and common-sense plan to address compliance with EPA’s Rules regarding visibility in national parks and wildlife areas, but, unfortunately, EPA appears ready to reject those recommendations.”
Based on preliminary analysis, OIEC estimates that the EPA proposal requiring the installation of scrubbers to OG&E and PSO’s existing coal-fired power plants would cost ratepayers approximately $3.5 billion more than the state’s regional haze compliance plan on a present value basis. Converting plants to natural gas – EPA’s alternative compliance option – would cost ratepayers even more over time due to forecasted price differentials between natural gas and coal fuel costs. The Oklahoma Department of Environmental Quality’s approved plan concludes that the continued use of low-sulfur coal should be the appropriate regional haze compliance strategy.
OIEC, which represents industries that collectively employ tens of thousands of people in Oklahoma, submitted its oral testimony during the EPA’s public comment period this week in Oklahoma City and Tulsa.
“The EPA is proposing an unnecessary compliance mandate that will likely result in the largest rate increase in state history,” said Schroedter. “On behalf of thousands of Oklahoma workers who depend on their manufacturing jobs, as well as the many businesses that benefit from a healthy manufacturing sector, OIEC is hopeful that the Oklahoma plan and the costs and benefits associated therewith will be fully considered and ultimately adopted, rather than rejected, by EPA.”
OIEC works to ensure just and reasonable utility rates for OIEC members based upon the utilities’ cost of providing service to those members. OIEC has been active on behalf of industrial and other large consumers of energy for more than 15 years, successfully advocating for utility cost reductions or avoidance of utility cost increases for its member companies. For more information on OIEC, call Tom Schroedter at (918) 594-0400. < < Back to News