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Cliffside expansion reaffirmed

By Bruce Henderson
bhenderson@charlotteobserver.com

The N.C. Utilities Commission on Wednesday denied environmentalists' move to stop the expansion of Duke Energy's Cliffside coal-fired power plant west of Charlotte.

The N.C. Waste Awareness and Reduction Network had asked the commission to revoke its approval of the 800-megawatt expansion, called a certificate of public convenience and necessity, that was granted in 2007.

"The decision reaffirms that Cliffside is needed so we can continue to provide our customers" with electricity, said Duke spokesman Jason Walls.

With the ruling, the only remaining challenges to Cliffside are before a state administrative court. A federal lawsuit filed by environmental groups to stop or modify the expansion was dismissed earlier this year.

Before the utilities commission, WARN claimed that completing the project was no longer in the public interest. The need for the expansion, it said, is based on Duke's potential sales of wholesale power, not the electricity demands of its Carolinas retail customers.

Duke argued that there was no legal basis to revoke the certificate. Despite slumping demand for electricity, it said, the Cliffside expansion is still needed.

The utility commission's Public Staff, which advocates for customers, sided with Duke.

In denying the WARN motion Wednesday, the commission found there is a continued need for baseload power generation - the workhorse electricity producers such as coal-fired plants. It noted that Duke had already invested $1.1 billion, through 2008, of the $1.8 billion construction budget.

WARN executive director Jim Warren said the group has not decided whether to appeal.

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