California bans dirty power sources

California bans dirty power sources

	Published : Fri, 26 Jan 2007 16:19 By : Agencies Print this Story

SAN FRANCISCO (AFX) - California regulators have banned the three companies that supply most of the state's power from buying electricity from high-polluting sources, including most coal-burning plants.

The rules adopted Thursday are aimed at reducing emissions of heat-trapping gases linked to global warming. While there are almost no coal-fired plants in California, about 20 percent of the state's electricity comes from coal plants in other Western states.

'It represents a significant milestone in our ongoing efforts to address the challenge of climate change,' said Michael Peevey, president of the Public Utilities Commission.

But the three investor-owned utilities regulated by the commission say that little of their electricity supply now comes from coal, and that they support the new emissions standard.

Coal makes up only 1 percent of electricity at Pacific Gas & Electric Co. in San Francisco, 7 percent at Southern California Edison in Rosemead, a subsidiary of Edison International, and 3 percent at San Diego Gas and Electric, which is owned by Sempra Energy.

The Public Utilities Commission voted 4-0 to prohibit the utilities from entering into long-term contracts with sources that emit more carbon dioxide than a modern natural gas plant.

California's municipal utilities are not regulated by the commission and will not be directly affected by its decision. Those utilities supply less of California's power, but a greater share of their electricity comes from out-of-state coal plants.

The California Energy Commission, which regulates those utilities, is drawing up similar rules expected to be issued by July.

Municipal utilities in Anaheim, Los Angeles, Pasadena and Truckee ran into strong opposition when they tried to secure long-term contracts with out-of-state coal plants before the emissions standard takes effect.

The new standard is aimed at encouraging investment in cleaner energy sources such as wind and solar, while discouraging the use of coal and other high-polluting fuels.

Coal is cheap and plentiful but releases high levels of carbon dioxide, a gas blamed for trapping heat in the Earth's atmosphere and raising temperatures worldwide.

The rule is expected to take effect Feb. 1.

Landmark global warming legislation Gov. Arnold Schwarzenegger signed into law last year required the commission to adopt emissions standards for utilities.

Environmentalists praised the decision, saying it could encourage other states to adopt similar rules.

'Other states may look at it and decide that they also want to transition from dirty coal power to cleaner, green power,' said Jim Metropulos of the Sierra Club.

Luke Popovich of the Washington-based National Mining Association said restricting emissions would drive up energy costs and have little effect on global warming unless other countries adopt similar limits.

'We don't think it makes sense for the United States to unilaterally deny itself use of its most abundant energy source, which is coal,' Popovich said.