Highwood coal-fired power plant suspended in favor of natural gas

In a sign of the changing times, a group of Montana electric utilities for the first time has suspended plans to build a coal-fired power plant in favor of immediate plans to build a natural gas power plant that would emit fewer greenhouse gases. The Southern Montana Electric Generation & Transmission Cooperative (“SME”) early last week announced that it would halt plans to build its $900 million 250-megawatt coal-fired Highwood Generating Station. Instead, construction will continue with a different fuelbase: natural gas. SME has decided to build a 120-megawatt natural gas-fired power plant in addition to a few wind towers in place of the coal-fired plant.

The announcement comes on the heels of several years of opposition to the project on the grounds that the proposed coal-fired plant would emit too much climate changing greenhouse gases and fine particulate. Environmental groups such as the Montana Environmental Information Center and Earthjustice filed multiple lawsuits challenging the permitting of the project, the rezoning of the site where the proposed project is to occur, and even the funding of the project by the federal government.

Tim Gregori, SME’s General Manager and CEO explained that the proposed coal-fired plant had been considerably delayed by the opposition from environmental groups and that there is an “immediate need for base load electric generation” that needs to be addressed. The new plans will ensure that energy will be available in 2011 and also allow SME additional time to sort through the regulatory uncertainty of the new federal leadership.

Environmental groups view SME’s change of fuelbase as directly related to the new administration in Washington. President Obama has pledged to reduce greenhouse gas emissions 80% by the year 2050. This includes ensuring that utilities turn to cleaner and renewable sources of energy like natural gas and wind. Environmental groups are optimistic that other proposed coal fired power plants like Sunflower in Kansas and Desert Rock in New Mexico will soon follow SME’s lead.