Conservation Insider Bulletin, June 5

Conservation Insider Bulletin
Published weekly for the Conservation Council of North Carolina
Conservation News to Peruse & Use
Editor: Dan Besse, cib@conservationcouncilnc.org

June 5, 2009

Duke announces a big rate hike request, and a huge coastal mining operation receives a new permit, this week in CIB:

--Administrative Watch: Duke Rate Hike Would Bankroll Cliffside
--Coast Watch: Phosphate Mine Gets New Permit
--Conservationists: Yadkin Riverkeeper Wins Recognition

Administrative Watch: Duke Rate Hike Would Bankroll Cliffside

Duke Energy filed a request with the N.C. Utilities Commission this week to hike its rates by 13.5 percent for residential customers, 9.7 percent for commercial and institutional users, and 15.2 percent for industries. Duke pointed to what it said were growing capital expenses as the main reason for the big rate hike request—including its contested new coal plant under construction at Cliffside.

The Cliffside-related costs would represent Duke's largest use of the controversial "construction work in progress" (CWIP) financing technique in decades. Opponents of new coal plant construction predicted this result when North Carolina legislators adopted legislation to radically weaken limits on CWIP in 2007.

Duke's rate hike request must be reviewed and approved by the Utilities Commission before it can take effect. Industrial and other electric customers immediately signaled opposition to the Duke request and can be expected to fight it in front of the state board. The Commission denied Duke's most recent previous rate hike request in 2007—but that was before new CWIP rules went into effect.

Meanwhile, environmental groups continue to challenge the Cliffside plant's air emission permits in federal court. The N.C. Division of Air Quality has now twice approved the plant's permit, and the U.S. District Court for western North Carolina is considering whether to intervene a second time.

Coast Watch: Phosphate Mine Gets New Permit

The U.S. Army Corps of Engineers this week issued a new permit for the massive PCS Phosphates mining operation on the Pamlico River in Beaufort County. The action may spell the end of a multi-year fight over the terms of expanding surface mining operations there, or could result in further challenges.

The Section 404 water quality permit would allow the company to mine through thousands of additional acres of wetlands near the river. It's the largest single permitted wetlands destruction operation in North Carolina history. The permit was held up by EPA directive earlier this year while the Corps reassessed what it would allow the company to do.

Citizen conservation groups including the Southern Environmental Law Center have been among those challenging PCS' mining expansion plans. Among the key issues has been the company's proposal to mine through a "nationally significant" hardwood swamp forest covering the headwaters of a Pamlico tributary stream.

An EPA spokesperson reacted favorably to some changes included in the Corps-approved permit, but noted that the agency continued to review the details. EPA has a short time within which to decide whether or not to challenge the permit further. Conservation groups are also in the process of reviewing the permit details. (Some facts for this article were drawn from the Washington Daily News, 6/4/09 and 6/5/09.)

Conservationists: Yadkin Riverkeeper Wins Recognition

Dean Naujoks, Yadkin Riverkeeper, received the River Network's 2009 National River Hero Award last weekend at the organization's annual national River Rally, held this year in Baltimore. The River Network promotes clean water restoration and protection, and has about 700 partner groups around the country.

Naujoks, who has worked on the Yadkin since October 2008, previously served for seven years as the Upper Neuse Riverkeeper. Zoe Gamble Hanes, president of the Yadkin Riverkeeper group, noted that Naujoks' work has gained particular attention through his efforts to reduce toxics pollution in Badin Lake associated with the former Alcoa operations there. (Gamble Hanes is also a member of the CCNC board of directors.)