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California rules open doors for Wyoming energy



Published: Friday, January 26, 2007 1:14 PM MST
Wyoming officials are watching closely as California regulators continue their march toward reducing heat-trapping gases linked to global warming.

The latest turn came Thursday as the California Public Utilities Commission voted to ban three companies that supply most of the state's power from buying electricity from high-polluting sources, including most coal-burning plants.

While there are almost no coal-fired plants in California, about 20 percent of the state's electricity comes from coal plants in other Western states. The new rules will prohibit those utilities from entering into long-term contracts with sources that emit more carbon dioxide than a modern natural gas plant

“It represents a significant milestone in our ongoing efforts to address the challenge of climate change,” said Michael Peevey, president of the Public Utilities Commission.

In Cheyenne, some state officials see Thursday's move as an opportunity for Wyoming to fill a void. They also expect no immediate drop-off in coal demand since current contracts are understood to be grandfathered in.

“What these regulations say is their utilities can't go out and sign contracts for coal-fired electricity unless these plants have carbon sequestration equal to a level at or better than natural gas-fired combined cycle plants,” said Rob Hurless, energy and telecommunications adviser for Gov. Dave Freudenthal.

Such rules are aimed at curbing coal use -which emits high levels of carbon dioxide that is blamed for raising global temperatures -and encouraging investment in cleaner energy sources including wind and solar.

Hurless and Wyoming Infrastructure Authority director Steve Waddington see a place for Wyoming energy that could be transported along the Frontier transmission line.

That could include wind, natural gas and, ultimately, coal plants with more aggressive carbon dioxide controls, Waddington said.

“The coal issue isn't resolved. Their economy is growing, they need power,” Hurless said.


In response to the new rules, officials at the three investor-owned utilities being regulated said they support the new standards and use very little coal-generated power.

Coal makes up only 1 percent of electricity at Pacific Gas & Electric Co. in San Francisco, 7 percent at Southern California Edison in Rosemead and 3 percent at San Diego Gas and Electric, which is owned by Sempra Energy.

California's municipal utilities are not regulated by the commission and will not be directly affected by its decision. Those utilities supply less of California's power, but a greater share of their electricity comes from out-of-state coal plants.

The California Energy Commission is drawing up similar rules expected to be issued by July.

Thursday's rules are expected to take effect Feb. 1.

- By PETER GARTRELL, News-Record Writer

- The Associated Press contributed to this report.



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