Indiana consumers and government officials would gain more localcontrol over merchant power plant sitings under legislation nowmaking its way through the Indiana House. HB 1979, sponsored byRep. Tiny Adams (D-Muncie), would give local municipalities andzoning boards more veto power over the siting process.

Adams said the bill is designed to address “many of theconcerns” that have come up in the past few years with generatorsbuilding more merchant power plants.

“A common thread in these cases is the general belief I’ve heardfrom citizens that these companies appear to have the belief thatthey can put their plants wherever they want, without any sort ofopportunity for the public to make its feelings known,” Adams said.”Beyond the need for public input, there also are serious questionsabout these plants, particularly since they use large amounts ofnatural gas and water and studies indicate they release significantamounts of air pollution.” He said he is worried that the state”could be creating another drain on heating oil that could createeven more problems down the road.”

Under the bill, which now sits in the Indiana House’s Commerceand Economic Development and Technology Committee, a merchant powerplant with a capacity of at least 25 MW would be required to firstobtain a siting certificate from the Indiana Utility RegulatoryCommission and pay a $50,000 fee toward the cost of a siting study.The IURC would then be required to hold a hearing on allapplications for siting certificates.

Edwin Simcox, president of the Indiana Electric Association,said the bill has “more profound implications” than anything elsefacing the state’s legislature in this session does. And the IURCalso has expressed concerns, but was awaiting action by the Housecommittee before deciding on whether to support it.

Adams said the bill would give the IURC a “consistent policy”for siting power plants. He said the IURC would have the chance toassess the regional need for merchant power plants and “considerwhether other options in satisfying Indiana’s electric demand aremore feasible than building more power plants.”

Calling merchant power plants “one of the by-products of therecent boom in electric deregulation,” Adams said that developerswanted to build in Indiana to sell electricity to neighboringstates “where markets have deregulated and prices are higher.”

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