4/6/2011 Daily Times: San Juan Generating Station operator requests permit change

4/6/2011 Daily Times: San Juan Generating Station operator requests permit changes [11:10 a.m.] By Chuck Slothower Posted: 04/06/2012 11:09:15 AM MDT: FARMINGTON — The operator of San Juan Generating Station on Friday requested changes to the coal plant’s air permit to allow for the installation of new pollution controls demanded by the U.S. Environmental Protection Agency.

Public Service Co. of New Mexico has been battling with the EPA over what kind of technology it should install to meet federal haze-reduction requirements.

“We are prepared to move forward on installing new environmental controls that will meet federal visibility requirements and further reduce the plant’s emissions,” PNM chief executive Pat Vincent-Collawn said in a prepared statement Friday. “Our strong preference is to do this in the most cost-effective way so that the cost to PNM customers and our state’s economy is kept as low as possible.”

PNM is pushing a state plan to install nonselective catalytic reduction technology. But the EPA has mandated selective catalytic reduction, a more expensive but much more effective technology.

The Albuquerque-based utility company says the state plan would cost about $77 million, while the EPA’s mandate would cost $750 million or more. The EPA counters that SCR would cost only $345 million.
Friday’s filing with the state Environment Department requests air permit changes that would allow for the installation of either technology.

The plant’s current permit level for nitrogen oxides is 0.30 pounds per MMBtu and would be lowered to either 0.23 pounds per mmBtu with the installation of SNCR or 0.05 pounds per MMBtu with the installation of SCR, the utility said.

Located west of Farmington in Waterflow, San Juan Generating Station produces 1,800 megawatts of electricity. The city of Farmington owns a portion of one of the plant’s four units.

On March 28, PNM and San Juan Mine operator BHP Billiton agreed to a $10 million settlement with the Sierra Club to take steps aimed at keeping coal waste out of nearby streams.

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