Hasn't happened....yet.
The Big Juice
Enron may generate electricity, profits and pollution near Coburg.
By Alan Pittman
The Enron Corporation may build a huge natural gas power plant a few miles north of Coburg.
"We are looking at it," says Enron planner Jeff Shields. Shields declined to discuss specifics and says no decision has been reached on whether to build the facility. "It's really pretty premature."
"It would be big," says Frank Lambe, general manager for the Emerald People's Utility District (EPUD). He says he has heard the plant would be located near Willamette Industries about three miles north of Coburg and generate 500 megawatts of power. That's enough electricity to power a half-million homes.
Phil Carver, an analyst with the state Department of Energy, says there's been no formal application for a siting permit at this time. He says informal contacts with power generators are confidential until a formal notice of intent is filed. But he says he's "heard rumors" about the possibility of a new plant in the area. "There's stuff happening. People have indicated interest."
The new plant could generate huge profits for Enron.
Carver says gas fired plants cost about $500 to $600 a kilowatt to build. The plant could generate power at an operating cost of about five cents per kilowatt and sell it on the current California market at 20 to 30 cents per kilowatt.
At those rates, Enron's plant could generate profits of $660 million to $1.1 billion a year on a capital investment of $250 million to $300 million.
A Dirty Business
But with Enron's big profits could come tons of air pollution.
A 500 MW natural gas plant would emit about 2.6 million tons a year of carbon dioxide and about 280 tons a year of nitrogen oxides, based on state and federal energy data.
Carbon dioxide is the leading contributor to global warming. In the last century, atmospheric carbon dioxide has increased 30 percent and global temperatures have risen one degree, according to the Sierra Club. Rising temperatures have already lead to drought, wildfires, deadly heat waves, disease epidemics, rising sea levels and retreating glaciers. This century, scientists predict carbon dioxide levels will double, worsening climate conditions and raising sea levels two feet or more, causing massive flooding.
A 500 MW power gas-fired power plant would exhaust as much carbon dioxide into the atmosphere as 24,000 SUVs caught in a traffic jam, based on federal data.
Carver says state law does not restrict how much carbon dioxide a power plant can release. Instead, the law requires plants to buy "mitigation" credits to fund carbon dioxide reduction projects. A 500 MW plant may have to pay about $1.6 million a year for such credits, based on what the state has charged other plants.
Nitrogen oxides the other big type of pollutant emitted by gas-powered plants are a primary contributor to smog. Nitrogen oxide could blow down the valley to Eugene from the plant and help create a reddish-brown haze over the city that contributes to acid rain and respiratory illness, especially in children.
Other environmental concerns involve the impact on the scenic valley, nearby wildlife and plants, water use, wastewater and land-use issues.
Tough environmental regulation of the new power plant may be unlikely. Federal and state officials are pushing expedited permitting for power plants in anticipation of energy shortages. And the local Lane Regional Air Pollution Authority (LRAPA) levies only about $24,000 in fines a year for air quality violations.
Enron, on the other hand, has annual revenues of $101 billion and is one of the biggest campaign donors to President George W. Bush. Enron is making huge profits from the current energy shortage. Last month, the corporation reported a 281 percent jump in quarterly revenues.
A Risky Business
In the volatile energy market, building a big new power plant could pose some risk for Enron. Power prices are sky high now, but just two years ago, there was an energy glut in the West with cheap power.
There isn't much need for the power from the plant in Oregon. The state right now is producing just enough power to meet its needs due to drought conditions reducing hydropower, according to Carver. But there's at least 1,400 megawatts of power plants under construction in the state right now, he says.
Any new plant near Coburg would take about three years to build, Carver says. By that time, the energy shortage could be over.
The rapidly changing energy market, shortages in gas turbines for new plants, scarce natural gas pipeline capacity and possibly better sites could mean the big power plant will never be built near Coburg, Carver says. At this stage, "it's in the speculative twinkle-in-the-eye category." |
