Luminant Approaches EPA About Environmental Regulations

---

Researched by Industrial Info Resources (Sugar Land, Texas)--On August 5, Luminant Energy Company LLC (Dallas, Texas), one of Texas' largest coal-fired generation owners, filed a petition with the U.S. Environmental Protection Agency (EPA) for the agency to reconsider its Cross State Air Pollution Rule and the Utility MACT Ruling. The company stated that the EPA is putting undue burden not only on the company, but also on the entire state of Texas.

In its petition to the EPA, the generator stated that less than a year ago, Texas power plants were not included in the agency's list of facilities regulated under its annual program. But with the new regulation finalized in July 2011, the EPA back-stepped will now enforce regulations on SO2 and NOx emissions, as well as PM 2.5 (particulate matter) regulations.

Luminant has stated that the agency has overstepped its authority and does not give the Texas utilities a realistic time frame to comply with the regulations. The EPA's model for the state of Texas is based on utilizing natural gas-fired assets that are mothballed, retired or demolished. Bringing these assets back into service would require several months to more than a year for maintenance and operational upgrades.

The agency's unrealistic January 1, 2012, requirement date will put Texas in a dangerous place in regard to the availability of electricity. The state of Texas currently has more than 104 gigawatts (GW) of electrical generation. Of this, 23 GW comes from coal-fired generation. Luminant owns 7 GW of this coal-fired generation. The scenerio being played out by Luminant is only one of hundreds that are expect to come to light in the next four to six month across the country in dealing with the EPA's heavy-handed attempt to regulate emissions.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.