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Thursday, September 02, 2004

Environment - Cinergy's planned environmental construction program

A press release from Cinergy today announces:

CINCINNATI--(BUSINESS WIRE)--Sept. 2, 2004--Cinergy Corp.'s (NYSE:CIN) operating companies, The Cincinnati Gas & Electric Co. and PSI Energy Inc., are beginning an environmental construction program that will reduce their power plant emissions in response to pending new federal environmental rules to improve air quality.

"According to the U.S. Environmental Protection Agency, these new rules will trigger the largest investment in air quality improvement in the history of the United States," said Cinergy Chairman, President and Chief Executive Officer James E. Rogers. "This will be our companies' largest environmental construction program, generating more than 1,000 construction jobs in Indiana and Ohio. Importantly, this plan enables us to burn coal more cleanly and to continue using a low-cost source of generating electricity for our customers."

In two separate rulemakings, the EPA has proposed significant reductions in sulfur dioxide, nitrogen oxide and mercury emissions from power plants. Because the rules are not yet finalized, Cinergy's operating companies are addressing the potential rules in two phases: Phase 1 focuses primarily on projects that would be necessary under a variety of rulemaking outcomes, and Phase 2 centers on projects that can wait until the EPA finalizes certain rules and more information is known about the reduction requirements, deadlines and performance of mercury removal technology. * * *

The companies will finalize Phase 2 of their plan when more information is known about the EPA reduction requirements, deadlines and performance of mercury removal technology. Depending on the final environmental rules, Cinergy's companies estimate that they will invest approximately $1.8 billion to reduce emissions under Phase 1 and more than $2 billion for both phases. In anticipation of these rules, PSI Energy announced earlier this year that it began construction of a new scrubber at Gibson Unit 3 in the spring of 2004. Cinergy's operating companies are also beginning construction on several other projects in the near future, including scrubbers at Cayuga Unit 2 and Gibson Unit 2 in Indiana and Miami Fort Units 7 and 8 in Ohio.

"We need to be in a position to time our construction with spring and fall plant maintenance down-times in order to maintain our ability to provide reliable, economical service and still work toward meeting potential mandated deadlines," Rogers said. "That's why we are starting work now. It also gives us early access to skilled trade labor and construction materials that other companies will also be seeking."

[Update 9/3/04] "Cinergy to curb local air pollution: Power plants to get controls" is the headline to this story today in the Louisville Courier-Journal with further details.

Posted by Marcia Oddi on September 2, 2004 08:16 PM
Posted to Environmental Issues