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Power plant growing, questions rising
By PAT KINNEY, Courier Business Editor and RC BALABAN, Courier Staff Writer
WATERLOO --- The largest economic development proposal in Cedar Valley history is getting bigger, while a local legislator is raising environmental questions about it.
Officials with LS Power Co., who want to build a coal-fired power plant east of Waterloo near Dewar, confirmed plans for 750 megawatts of generation and a price tag of up to $1.3 billion. It had been looking at a 600-megawatt plant for $1 billion.
Robert Colozza, project manager with LS Power, said the decision was made due to the interest from other companies purchasing power. "It was just looking at the market for the power," Colozza said.
State Rep. Don Shoultz, D-Waterloo, ranking member of the Iowa House Environmental Protection Committee, raised questions about the plant in a Feb. 2. newsletter to constituents.
"I have some concerns about it. There's some questions that need to be answered regarding the economic benefit and what it will do to the area of Waterloo, and the destruction of county roads, and what it's going to be like to have these big coal trains going through downtown Waterloo and just what the advantages are," Shoultz said.
"I don't know if people understand how big this plant is," Shoultz said. "When you look out over the horizon around Waterloo, it's going to stand out."
LS Power, based in East Brunswick, N.J., with offices in St. Louis, would build the massive facility on 320 acres of land along Newell Street east of Eagle Ottawa tannery. The land is currently in Black Hawk County, but would be annexed into Waterloo if approved by the City Council and the Board of Supervisors.
Pending state and federal regulatory approvals, construction would begin in 2007 and be completed in 2011.
The plant would employ up to 1,200 construction workers during the four-year period at a total payroll of $200 million. It would employ 100 people at an annual payroll of $7 million, an average of $70,000 per permanent employee. LS Power would hire a private firm experienced in power plant operations to staff and run the facility.
State Rep. Willard Jenkins, R-Waterloo, who sponsored House File 577 in 2001 to encourage new power plants in Iowa, is confident many of Shoultz's concerns will be addressed in the regulatory process, including state air quality and water withdrawal permits.
"Since House File 577 we've had several power plants built or under construction in the state," Jenkins said. "The people who built those have been surprised at how little concern there has been from an environmental standpoint. They thought they had worked well with the state, being able to answer their environmental concerns."
Dust control and storm water runoff from coal stored on the site are among questions Shoultz wants answered.
"An overriding feeling is, also, that we have not gotten serious yet about the effects of increased amounts of carbon dioxide we're putting into the atmosphere," he said. "There is a change in the environment, and it'll continue to change."
He added, "We should be addressing our energy needs, and this is not for our energy needs."
LS Power proposes to sell the electricity to other utilities, while some local utilities are building their own generating facilities.
"It appears almost all the energy will be going outside the state" from LS Power, Shoultz said. "This will be the first time we have a coal-fired 'merchant' plant built in Iowa. It's not clear the energy is needed here in Iowa. We're going to be the host of a plant that's going to provide energy for somebody else."
Jenkins responded, "I would agree with Don this is our first 'merchant' plant, but I don't think anybody here is saying let's just throw all the environmental concerns overboard. This is not a fly-by-night company we're dealing with. This is a very reputable company."
Jenkins agreed no federal environmental impact statement will be required because the facility is not being built with federal funds.
"That does not mean there are no DNR (Iowa Department of Natural Resources) regulations," Jenkins said. "In fact, the other coal plant that is being built is near Council Bluffs, under construction right now by MidAmerican Energy, is about the same size as this one. It has no environmental impact statement because MidAmerican did not use federal money. They used (billionaire MidAmerican investor-owner) Warren Buffet's money."
Jenkins said generating power for out-of-state customers puts the state at an economic advantage, while also providing Iowa utilities a good potential power source.
"When I did House File 577, it was an objective we had, to get into a position where we are exporting power," rather than importing it, "so we could have growth here, and still have highly competitive prices for ourselves," Jenkins said.
He also numerous Iowa utilities could use the plant's electricity.
State Rep. Deborah Berry, D-Waterloo, and State Sen. Bill Dotzler, D-Waterloo, in whose districts the power plant would be located, said Shoultz has valid environmental concerns, but cited the economic benefits.
" I believe these are questions every community would raise with projects of this magnitude," Berry said. "I feel confident in knowing that LS Power is at the beginning stages of a two-year process that includes various permits that will address environment and community impact as well. Eventually the community members will provide input as well. The good thing is Iowa benefits with high-paying jobs and a new industry that will hopefully attract more development to the north side of town."
"We have to look at the impact to the entire Cedar Valley," Dotzler said. "The jobs created and economic investment is going to be a real plus, and it's going to outweigh some of the negatives with coal-fired plants. Even though it's going to increase emissions, it's going to be one of the cleanest coal-fired plants in the country.
"We've got to wean ourselves off natural gas sometime, and this has to be part of it," Dotzler said, citing alternative energy sources as well.
Black Hawk County Supervisor John Miller is concerned about the impact on county roads, as well as coal trains impeding emergency vehicle access.
Miller said some community leaders are "so dazzled by the dollar signs in their eyes, they're not willing to pose questions.
"That's not saying that the folks I've talked to are opposed," said Miller. "They just need answers."
However, some petitions have been circulating in towns such as Dewar and Raymond. Organizers have gathered about 400 signatures.
The petitions cite three specific reasons for opposition: the belief it will increase flood waters, the emission of chemicals and more traffic.
Contact Pat Kinney at (319) 291-1484 or Pat.Kinney@wcfcourier.com
Officials with LS Power Co., who want to build a coal-fired power plant east of Waterloo near Dewar, confirmed plans for 750 megawatts of generation and a price tag of up to $1.3 billion. It had been looking at a 600-megawatt plant for $1 billion.
Robert Colozza, project manager with LS Power, said the decision was made due to the interest from other companies purchasing power. "It was just looking at the market for the power," Colozza said.
State Rep. Don Shoultz, D-Waterloo, ranking member of the Iowa House Environmental Protection Committee, raised questions about the plant in a Feb. 2. newsletter to constituents.
"I have some concerns about it. There's some questions that need to be answered regarding the economic benefit and what it will do to the area of Waterloo, and the destruction of county roads, and what it's going to be like to have these big coal trains going through downtown Waterloo and just what the advantages are," Shoultz said.
"I don't know if people understand how big this plant is," Shoultz said. "When you look out over the horizon around Waterloo, it's going to stand out."
LS Power, based in East Brunswick, N.J., with offices in St. Louis, would build the massive facility on 320 acres of land along Newell Street east of Eagle Ottawa tannery. The land is currently in Black Hawk County, but would be annexed into Waterloo if approved by the City Council and the Board of Supervisors.
Pending state and federal regulatory approvals, construction would begin in 2007 and be completed in 2011.
The plant would employ up to 1,200 construction workers during the four-year period at a total payroll of $200 million. It would employ 100 people at an annual payroll of $7 million, an average of $70,000 per permanent employee. LS Power would hire a private firm experienced in power plant operations to staff and run the facility.
State Rep. Willard Jenkins, R-Waterloo, who sponsored House File 577 in 2001 to encourage new power plants in Iowa, is confident many of Shoultz's concerns will be addressed in the regulatory process, including state air quality and water withdrawal permits.
"Since House File 577 we've had several power plants built or under construction in the state," Jenkins said. "The people who built those have been surprised at how little concern there has been from an environmental standpoint. They thought they had worked well with the state, being able to answer their environmental concerns."
Dust control and storm water runoff from coal stored on the site are among questions Shoultz wants answered.
"An overriding feeling is, also, that we have not gotten serious yet about the effects of increased amounts of carbon dioxide we're putting into the atmosphere," he said. "There is a change in the environment, and it'll continue to change."
He added, "We should be addressing our energy needs, and this is not for our energy needs."
LS Power proposes to sell the electricity to other utilities, while some local utilities are building their own generating facilities.
"It appears almost all the energy will be going outside the state" from LS Power, Shoultz said. "This will be the first time we have a coal-fired 'merchant' plant built in Iowa. It's not clear the energy is needed here in Iowa. We're going to be the host of a plant that's going to provide energy for somebody else."
Jenkins responded, "I would agree with Don this is our first 'merchant' plant, but I don't think anybody here is saying let's just throw all the environmental concerns overboard. This is not a fly-by-night company we're dealing with. This is a very reputable company."
Jenkins agreed no federal environmental impact statement will be required because the facility is not being built with federal funds.
"That does not mean there are no DNR (Iowa Department of Natural Resources) regulations," Jenkins said. "In fact, the other coal plant that is being built is near Council Bluffs, under construction right now by MidAmerican Energy, is about the same size as this one. It has no environmental impact statement because MidAmerican did not use federal money. They used (billionaire MidAmerican investor-owner) Warren Buffet's money."
Jenkins said generating power for out-of-state customers puts the state at an economic advantage, while also providing Iowa utilities a good potential power source.
"When I did House File 577, it was an objective we had, to get into a position where we are exporting power," rather than importing it, "so we could have growth here, and still have highly competitive prices for ourselves," Jenkins said.
He also numerous Iowa utilities could use the plant's electricity.
State Rep. Deborah Berry, D-Waterloo, and State Sen. Bill Dotzler, D-Waterloo, in whose districts the power plant would be located, said Shoultz has valid environmental concerns, but cited the economic benefits.
" I believe these are questions every community would raise with projects of this magnitude," Berry said. "I feel confident in knowing that LS Power is at the beginning stages of a two-year process that includes various permits that will address environment and community impact as well. Eventually the community members will provide input as well. The good thing is Iowa benefits with high-paying jobs and a new industry that will hopefully attract more development to the north side of town."
"We have to look at the impact to the entire Cedar Valley," Dotzler said. "The jobs created and economic investment is going to be a real plus, and it's going to outweigh some of the negatives with coal-fired plants. Even though it's going to increase emissions, it's going to be one of the cleanest coal-fired plants in the country.
"We've got to wean ourselves off natural gas sometime, and this has to be part of it," Dotzler said, citing alternative energy sources as well.
Black Hawk County Supervisor John Miller is concerned about the impact on county roads, as well as coal trains impeding emergency vehicle access.
Miller said some community leaders are "so dazzled by the dollar signs in their eyes, they're not willing to pose questions.
"That's not saying that the folks I've talked to are opposed," said Miller. "They just need answers."
However, some petitions have been circulating in towns such as Dewar and Raymond. Organizers have gathered about 400 signatures.
The petitions cite three specific reasons for opposition: the belief it will increase flood waters, the emission of chemicals and more traffic.
Contact Pat Kinney at (319) 291-1484 or Pat.Kinney@wcfcourier.com
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