Power Hungry

By J.A. Savage and Elizabeth McCarthy, Albion Monitor. Posted August 9, 2000.

As a heat wave baked the West Coast during the first week of August, Californians were startled to learn that the electrial grid was on the verge of overload. Any day could bring a "stage three emergency" where "rolling blackouts" would cascade through the state, shutting down cities wholesale.

Welcome to the current state of the electricity industry, where brownouts and blackouts are getting as common as visits from your relatives.

Companies that develop new power plants are anxiously waiting for states to permit new building. Some have broken ground in the last few months. These builders are not the ubiquitous U.S. utilities of yore -- they are deep-pockets companies that develop power plants in India, South America and wherever else capital flows and privitization is allowed. Developers, might, however, include a recent explosion of utility affiliates that are unregulated by state agencies and the federal government.

In California, a state much farther along in deregulating its electric industry, five plants have been approved so far, with another 19 holding formal applications. If built, those would produce 15,000 megawatts of power, theoretically enough to plug in 150 million new homes. Dozens more developers wait in the wings.

The new plants could be a great step forward if you depend on air conditioning and uninterruptable Internet access, or are a manufacturer or other big business. It does not bode well, however, for environmental quality.

Being left out of the equation is that fact that power plant development is inextricably linked with water policy, air pollution mitigation experiments with emissions trading, cries for environmental justice and threats to endangered species.

In California, no policy maker nor agency is investigating the huge environmental and economic effects of siting more than two dozen facilities. Instead, the new "merchant" plants are being approved on a case-by-case basis. Energy reliability concerns, real and perceived, are calling the shots, and the cumulative impacts of development being given short shrift.

To make matter worse, the authority of the California Energy Commission (CEC), which is responsible for licensing new plants, was limited by lawmakers last year. Local water boards, air boards and state wildlife departments like Fish & Game, may look at power plants individually, or on a regional basis. But all the agencies feed into the energy commission, which can ignore or embrace their concerns, as well as those of local citizens.

The new generation of merchant plants are by all measures state-of-the-art as far limiting pollution and resource impacts, but with so many on the table, concern is growing about the lack of consideration of cumulative effects.

"The cumulative impact issue is not getting its just review," said Marc Joseph, attorney for a coalition of construction unions called California Unions for Responsible Energy (CURE). The coalition has objected to many development projects being reviewed by the energy commission, taking tough environmental positions often disputed by CEC staff.

Like the coalition of environmentalists and unions in Seattle protesting the World Trade Organization, in the case of new power plants, unions are finding that saving the environment actually means keeping jobs, not taking them away.

"For construction workers in California, long-term economic success comes from sustainable development," explained Joseph. When water is used up and air quality offsets no longer are available "The first victims are the construction workers because they don't get to work on the next job."

As an intervenor in nearly every siting case, Joseph is probably the most concerned about cumulative environmental and economic impacts. He said the massive amount of construction jobs on any one plant is not worth it if the environmental impacts are too offensive.

The commission has wide latitude in its decisions, according to Steve Larson, CEC executive director. Most agree, however, that the commission's decision-making has yet to be influenced by the total weight of all these proposed plants. The most recent analyses try to address some cumulative concerns but staff is harried, faced with the abundance of cases that have a one-year deadline.

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