Power plant debate

After years of debate and delays, Gainesville city commissioners could vote Monday to start negotiations on a new power plant.

The 100-megawatt plant favored by Gainesville Regional Utilities would burn wood waste such as the timber leftover from logging, branches trimmed from urban trees and sawdust from lumber mills.

The plant would create local jobs, provide environmental benefits and lower rates, said Ed Regan, GRU's chief strategic planner.

"We believe this will make us a leader in the green power community and this will do good things for our community," he said.

The biomass plant could be considered a victory for environmental advocates. Their concerns helped stop coal from being considered as a fuel, while more recently the idea of burning garbage was dropped from the discussion.

Yet concerns remain over the proposal, including questions over its size, impact on forests and a price tag that could top $300 million. Some advocates who have long followed the process, such as Dian Deevey, continue to question whether any plant should be built.

"There's no earthly need to make a decision on Monday," she said. "They've determined to have this generator whether it's a good idea or not."

But others in the environmental community are signaling their desire to end a sometimes rancorous debate with GRU. Rob Brinkman, president of the local Sierra Club chapter, said he still has concerns but believes advocates should work to shape and not stop the plant.

"If you're seen as always being against every proposal, ultimately people will stop listening to you," he said.

GRU had originally tied the need for a power plant to the community's growth, saying demand would exceed locally available power by 2011. But Regan said increased spending on conservation programs has pushed that date back to 2018, meaning the plant's current appeal is based more on economics.

Currently, GRU relies on natural gas that has seen price jumps and caused increases in utility bills. The utility in March started a five-year contract to buy electricity from Progress Energy.

Regan said the biomass plant would mean a local energy source with more stable costs, saving customers an estimated $260 million over 20 years.

"The reason is financial - because high fuel prices keep climbing," he said.

The project would also provide environmental benefits, including addressing the greenhouse gases that cause climate change. The utility is anticipating federal and state regulations, which will mean a tax on carbon emissions and requirements to use renewable energy.

Commissioners will consider biomass proposals by three companies: Covanta Energy, Nacogdoches Power and Sterling Planet. A vote would start negotiations on the plant with an eye toward having the plant running by 2010.

GRU staff supports the Nacogdoches proposal. The company, a joint venture between two New England companies that have developed hydroelectric and wind projects in that region, is currently building a 100-megawatt biomass plant in East Texas.

The Gainesville plant would be the same size. GRU would have the option of buying 50 megawatts of power, allowing the company to sell the rest to another utility, or buying the full 100, using as much as needed and selling the rest on its own.

Nacogdoches would own the plant, the first time GRU would not own one of its main power producers. Regan said the company would offer financial assurances that help pay for replacement power if the plant isn't built and guarantee fixed costs in charging utility customers to pay for the plant's construction.

"They're the ones taking the risk - that's the beauty of the whole process," he said.

The company would also agree to a firm rate on the cost of energy. Regan said the company would help pay a percentage of costs exceeding that amount if fuel becomes more expensive, while taking a percentage for profit if costs fall under the figure.

"They have a financial incentive to keep the prices low," he said.

Regan said the amount is about one-third of the increase or decrease, but the exact percentages are part of the voluminous amount of information redacted from the proposal. While commissioners can see the information, Deevey said she's concerned the community won't be able to make a proper evaluation without the material.

She fears GRU customers will be stuck with skyrocketing costs for energy. She said rates could increase due to the rising cost of diesel, which would fuel trucks delivering wood, and competition for wood from biomass plants planned by Jacksonville and Tallahassee utilities.

"These guys are going to demand every drop of blood that they can squeeze out of us," she said.

Others are concerned about the effect of demand for wood on forests, such as the conversion of older-growth forests to pine plantations. GRU would pay higher rates for wood to logging companies that certify their operations as environmentally friendly.

But the certification process would be open to a variety of programs with differing environmental standards, said Josh Dickinson, executive director of a nonprofit sustainable forestry group in Gainesville. He's a member of the Forest Stewardship Council board and supports using its certification program to protect forests.

"The competition is likely to become significant," he said. "That will be a temptation for them to use everything in sight."

Brinkman said he shares Dickinson's concerns and supports having GRU-employed foresters to monitor forest health. He believes the plant could benefit the environment by using a local energy source and reducing carbon emissions.

"There's a tendency for people to say if you're burning something, it's not renewable," he said. "But by definition, forests are renewable - if it's done right.

But Deevey is not persuaded. She believes the plant could be an environmental and economic disaster.

"I think we could bankrupt the city with any of these biomass proposals," she said.

Nathan Crabbe can be reached at 352-338-3176 or crabben@gvillesun.com.