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Utilities weighing in on proposed EPA carbon rules

Utilities and coal companies are working to make sure they meet a December first deadline to comment on the proposed carbon emission reduction rule, proposed by the EPA.

The rule calls for a 30 percent reduction in carbon dioxide emissions by the year 2030.

"We are busily trying to put comments together," said Basin Electric Power Cooperative CEO and general manager Paul Sukut. "We are working with our membership as well."

Sukut says Basin’s concerned about how this will work – when the targets for the individual states are different.

"We generate in South Dakota, Iowa, Montana and Wyoming, in addition to North Dakota," said Sukut. "We have to take a look at this and see how that affects us across that footprint."

In North Dakota, for example, the EPA rule calls for an 11 percent emission reduction – while in South Dakota, the number is 35 percent.

"If it (the rule) took place as it has been writtien, North Dakota would be in a very good position," said Al Christianson, the government and business affairs manager of Great River Energy in North Dakota. Great River owns the Coal Creek, Stanton and Spiritwood stations. "We should be able to meet those standards without great harm to our members."

However, Christianson says how the rule comes out could be the issue.

Christianson says GRE is weighing-in with its comments on the new rule.  So is the North Dakota Association of Rural Electric Cooperatives. General manager Dennis Hill says the main concern is what happens to the existing coal-fired generating plants.

"The investment that we've made in North Dakota is in the magnitude of $5 billion," said Hill. "You can't just take that out of the mix, especially at a time when the demand for power is growing, especially in the oil patch."

Hill says the RECs are also worried about the impact to the consumer.

"The consumer always appreciates having the lowest price kilowatt brought to their doorstep, rather than the highest-priced kilowatt," said Hill.

EPA plans to issue the final rule next summer.

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