ACC approval ,
 FYI--Didn't know if you were tracking this plant, but thought you find the =
ACC decision of interest.  gh




COMMISSION APPROVES BOWIE POWER PROJECT  Requires Use of Solor Technology &=
 Groundwater Monitoring Program=09
PHOENIX - In a decision yesterday, the Arizona Corporation Commission appro=
ved the Bowie Power Station proposed for eastern Cochise County in southeas=
tern Arizona. The project, to be constructed in two 500-megawatt phases, is=
 a water-cooled power plant using a maximum of 6,000 acre-feet of groundwat=
er per year when both units are operating continuously at full output. Sout=
hWestern Power Group II is the project developer. The approval requires Sou=
thWestern to install solar technology when they begin building the second p=
ower block. This is the first merchant power plant that is required to inco=
rporate solar technology as a core part of the total project. Merchant powe=
r plants supply power to the wholesale market as opposed to power plants bu=
ilt by a utility with the primary objective of serving its own customers. D=
uring Tuesday's meeting, the Commission accepted the 22 restrictions placed=
 on the project by the Arizona Power Plant and Transmission Line Siting Com=
mittee. After hearing from several representatives of the Bowie and Willcox=
 communities, the Commissioners approved an amendment offered by Commission=
er Spitzer. The Spitzer amendment specifically addresses concerns by nearby=
 pistachio farmers that groundwater pumping could affect the surrounding wa=
ter table. Summary of the Spitzer Amendment: The amendment requires SouthWe=
stern Power Group II to establish and pay for a groundwater monitoring prog=
ram that meets Arizona Department of Water Resources criteria. Once the pro=
ject is operating, the SouthWestern will have to establish and make annual =
contributions of $100,000 to a Groundwater Impact Mitigation Fund until the=
 fund reaches a balance of $500,000. Any business or individual who can pro=
ve, through successful arbitration, that groundwater pumping has caused pro=
perty or economic damage will be able to submit a claim for reimbursement. =
SouthWestern will be required to maintain a total balance of $500,000 in th=
e fund. Status reports on the program are to be filed with the Town of Bowi=
e, the Pistachio Pass Irrigation District and the Cochise County Board of S=
upervisors. The Groundwater Impact Mitigation Fund must be maintained for t=
hree years after the plant ceases operation and is decommissioned. Commissi=
oner Marc Spitzer said the amendment was prudent considering that the lasti=
ng impact of the power project. "I proposed this amendment to answer the co=
ncerns of the pistachio farmers and the irrigation district," Commissioner =
Marc Spitzer said. "Although we heard testimony that the power plant's grou=
ndwater needs would be less than if the land were farmed, I don't think you=
 can be too careful. We're making decisions that could affect an economical=
ly depressed area for generations to come." Other Environmental Conditions:=
 Twenty-two conditions were imposed by the Arizona Power Plant and Transmis=
sion Line Siting Committee. They include: ? Establishment of a monitoring p=
roject and mitigation fund for ground subsidence and earth fissure monitori=
ng. Subsidence is a potential side effect of groundwater pumping. Cracks, f=
issures or dips can form in the surface of the earth because the water deep=
 underground that provided physical support is no longer there. ? Contribut=
ions to the Bowie Fire District to enable it to acquire an additional emerg=
ency services vehicle as well as funding of emergency response and hazardou=
s materials training for firefighters. ? Making arrangements with local law=
 enforcement and the Cochise County Sheriff because the project will involv=
e an increase in traffic and may result in the need for emergency responses=
 by local law enforcement. This was an amendment sponsored by Commissioner =
Jim Irvin. ? Prior to construction of the facility, SouthWestern must provi=
de the Commission with a technical study showing that sufficient transmissi=
on capacity exists to accommodate the output of the plant and the effect of=
 its output on reliable operation of the electric grid. ? Conditions requir=
ing compliance with air and water quality standards imposed by the Arizona =
Department of Environmental Quality and the Arizona Department of Water Res=
ources. Additionally, the applicant will have to participate in and comply =
with all standards for safe, reliable power delivery. "I was pleased to sup=
port this project, in part because it includes solar technology as a key co=
mponent of the whole project. The level of support from the local community=
 was also impressive. Les Thompson, Chairman of the Cochise County Board of=
 Supervisors indicated that Bowie has one of the highest tax rates of any A=
rizona community," Chairman Bill Mundell explained. "The residents and busi=
ness people were very excited about the tax and economic development benefi=
ts of having the power plant in their community. Additionally, the project =
will bring several hundred construction jobs to Bowie and Willcox and, ulti=
mately, the 30 or 40 people needed to run the plant." Commissioner Irvin vo=
ted in favor of the project, saying: "I do believe the need for this projec=
t was established in the record. Further, I believe the project is in the p=
ublic interest and meets the balancing test." He was referring to the sitin=
g statute that requires the Commission "to balance, in the broad public int=
erest, the need for an adequate, economical and reliable supply of electric=
 power with the desire to minimize the effect thereof on the environment an=
d ecology of this state." (Arizona Revised Statutes ? 40-360.07, subsection=
 B.) For more information about recent power plant sitings, visit the Arizo=
na Corporation Commission's website at <http://www.cc.state.az.us/news/inde=
x.htm>. =09
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kevin.hyatt@enron.com