AES Shady Point II

The AES Shady Point II was a proposed 650 megawatt fluidized-bed unit to be built at its existing 320-MW AES Shady Point Generation Plant. As of Dec. 2007, AES had not submitted a permit application to the Oklahoma Department of Environmental Quality. The plant's construction was cancelled in 2009.

Background
The following information was posted about the Shady Point proposal on the environmental forum GrassrootsOzarks.net:


 * Shady Point and Panama are two small towns in Oklahoma about 20 miles south of I-40 near Arkansas. They are home to a 330 megawatt coal burning power plant owned by AES (Shady Point I).  AES is seeking permits to build an additional plant in the same location (Shady Point II).  The additional plant would be 630 megawatts.


 * Shady Point I is and Shady Point II would be a "merchant plant" which means they sell electricity to utilities or other electricity providers who sell to residences and businesses. Both plants will burn primarily Wyoming Coal mixed with about 10% Oklahoma coal (poor quality and high sulfur content).  Currently, Shady Point I sells its electricity to Oklahoma Gas and Electric Company, but neither Shady Point I or II will be limited to selling to Oklahoma utilities or to Oklahoma consumers. In a nutshell, coal will be mined in Wyoming, and a little in Oklahoma, transported by rail from Wyoming and by truck from Oklahoma mines, burned in Shady Point, and the electricity will be sent to Oklahoma City, Tulsa, Arkansas, Kansas, Texas, Louisiana or elsewhere.


 * There will be a great debate over whether this plant is economically viable, environmentally sound, or socially just. What is the impact on consumers who will ultimately pay for this coal plant?  What is the impact on air quality, especially in Tulsa, northeast Oklahoma and northwest Arkansas?  What is the impact on surrounding rural communities in Oklahoma and Arkansas that will experience the coal mining, burning the coal, disposal of fly ash and other impacts on the environment?  What is the impact on the desirability of this area as a place to retire and raise children?  What is the impact on hunting, fishing, horse racing, and farming -- the local businesses that require healthy animals living in healthy environments?  There are many issues to address regarding this plant.


 * For additional information regarding opposition to the plant, contact:
 * Angela Wisely, Outreach Coordinator for
 * Audubon Arkansas
 * 1423B South Main St.
 * Little Rock, AR 72201
 * 501.244.2229
 * awisely AT audubon.org

AES seeks permit, then retreats
In March 2008, AES submitted an application for an air permit for the Shady Point II coal plant.

According to a Sierra Club October 2008 update, AES recently submitted an application to the Oklahoma Corporation Commission to pass through the costs associated with new and changed emissions laws to ratepayers. The Commission's staff moved to dismiss AES' application for cost pass-through because the Commission only has jurisdiction over public utilities, not private merchants like AES. The Sierra Club filed a supporting motion that provided several additional reasons why AES' request should not be considered by the Commission. The Sierra Club argues that AES requested relief based on hypothetical facts related to nonexistent regulations. The night before the hearing on these motion, AES and OG&E announced that they were in settlement negotiations and one week later, AES voluntarily withdrew its application."

On February 17, 2009, AES announced that it had withdrawn its air permit application for the new plant. Company spokesman Lindy Kiger explained the decision to cancel the project as "part of our broader strategy to re-evaluate our growth plans."

Project details
Sponsor: AES Corp. Location: Panama, OK Capacity: 650 MW Status: Cancelled

Coal activist videos
More videos available at:
 * Coal Activist Videos: Oklahoma

Citizen groups

 * B.E. Cause - The Bokoshe Environmental Cause Group - http://www.intheairwebreathe.com

Related SourceWatch articles

 * AES Shady Point Generation Plant
 * Oklahoma and coal
 * United States and coal
 * Carbon Capture and Storage
 * Existing U.S. Coal Plants
 * US proposed coal plants (both active and cancelled)
 * Coal plants cancelled in 2007
 * Coal plants cancelled in 2008
 * State-by-state guide to information on coal in the United States (or click on the map)