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Panel reviews future Kansas energy costsWICHITA, Kan. (AP)--State efforts to reduce greenhouse gas emissions could have an effect not only on Kansas power plants, but on agriculture and anyone who owns a vehicle, according to a state audit for the Kansas Energy and Environmental Policy group. The audit for the group, which was created to find ways to combat climate change, said electric utilities would be most affected by changes, although other people would also likely feel the affects. David Springe, consumer counsel for the Citizen's Utility Ratepayer Board, said any costs to utilities would just be passed on to customers. "Ratepayers are going to pay for everything, regardless," Springe said. The policy group is developing a list of ways to combat global warming, such as lowering the speed limit and creating electricity from methane produced by livestock manure. The group is expected to have energy policy recommendations ready to present to Gov. Kathleen Sebelius and legislators in the coming weeks. Separately, some anticipate that the Obama administration will institute some form of carbon-dioxide tax on businesses to curb emissions. Business leaders are concerned that an aggressive regulatory climate could hurt the Kansas economy. Groups such as the National Association of Manufacturers oppose federal or state climate-change actions that could "adversely affect the international competitiveness of the U.S. marketplace economy." The association predicted that one federal proposal would have cost Kansas 11,093 to 16,687 jobs by 2020. "Our biggest concerns are that we'll see higher taxes on business and consumers, and jobs lost to rapidly developing nations like China and India--countries that will not participate in efforts to limit greenhouse gases," said Melissa Cohlmia, director of communication for Koch Industries Inc. In 2007, Kansas Department of Health and Environment Secretary Rod Bremby denied a request from Sunflower Electric Corp., to build two new coal-fired generators next to its existing power plant in Holcomb. Bremby said then he had concerns about the potential carbon-dioxide emissions from the southwest Kansas project. Sebelius vetoed bills from the Legislature that would have reversed that decision, but it's expected to be an issue again next year. Also, Sunflower and its partner in the project, Tri-State Generation and Transmission of Westminster, Colo., have taken the matter to court. A report issued Nov. 11 by New York-based Innovest Strategic Value Investors said the project likely would cost Tri-State up to $217 million annually under new federal emissions standards. Those requirements would cap emissions for utilities and other industries in effort to reduce overall carbon emissions. Analysts said under such conditions, Tri-State would be better served to consider alternative energy sources, such as wind or solar power. Kent Eckles, the Kansas Chamber's vice president for government affairs, said the business community has lingering doubts about the regulatory climate in Kansas. "We've heard people saying that because of what happened last session they feel that the state has hung a big 'We're not open for business' sign out," he said. Sen. Carolyn McGinn, a Sedgwick Republican and chairwoman of the Legislature's Joint Committee on Energy and Environmental Policy, said that panel is developing a comprehensive plan that blends renewable and traditional energy sources. "We're making sure it is affordable and responsible to the environment as well as our ratepayers," she said. "At the end of the day the ratepayers are going to be the ones that pay the bill." 11/24/08 Date: 11/20/08
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