NC WARN, Climate Times told to put up $98M bond to appeal Duke power plant permit
The N.C. Utilities Commission has told two nonprofits that they must put up a $98 million bond for the right to appeal a power plant construction permit issued to Duke Energy.
A bond is required by a 1965 state law enacted to protect electric utility customers from any increased costs that result from construction delays while a permit is under appeal. The bond provision has never been invoked in anyone’s recollection because power plant permits are not challenged after they are issued, said James McLawhorn, director of the Electric Division of the Public Staff, the agency that represents the public in utility rate cases before the commission.
“The statute plainly places on the appealing party the financial risk of what potentially could be extensive additional costs,” the Utilities Commission said in its order. “Otherwise, these costs would be added to the cost of the generating facility to be recovered from consumers through higher rates.”
The commission issued the power plant permit – called a certificate of public convenience and necessity – in March, and Duke had planned to begin building the $1 billion natural gas power project in October. Charlotte-based Duke said the plant in Buncombe County will replace a coal-burning plant scheduled to be demolished, and must be operational before Jan. 31, 2020, under deadlines set by the state legislature in the Coal Ash Management Act and the Mountain Energy Act.
Read more here: http://www.charlotteobserver.com/news/business/article88859482.html
[font color=330099]This amounts to a loss to the non-profit environmental groups since a non-profit could never afford such an exorbitant bond no matter what the merits of their case might be.[/font]