MVCAC July 2008

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US-EPA releases report
by Duane330＠aol.com 24 Jul '08

24 Jul '08

EPA RELEASES REPORT ON CLIMATE CHANGE AND HUMAN HEALTH The U.S. Environmental Protection Agency has released a report developed by _The U.S. Climate Change Science Program (CCSP)_ (http://www.climatescience.gov/) titled "Analyses of the Effects of Global Change on Human Health and Welfare and Human Systems." The report identifies strategies on how to respond to the challenges of a changing climate and identifies near- and long-term research goals that address data and knowledge gaps. The report is thus far the most up-to-date scientific assessment on the impact of global change on human health, welfare and settlements in the country. For more information, go to _Information on Analyses of the Effects of Global Change on Human Health and Welfare and Human Systems_ (http://cfpub.epa.gov/ncea/cfm/recordisplay.cfm?deid=197244) and _The Office of Research and Development's Global Change Research Program_ (http://www.epa.gov/ord/npd/globalresearch-intro.htm) **************Get fantasy football with free live scoring. Sign up for FanHouse Fantasy Football today. (http://www.fanhouse.com/fantasyaffair?ncid=aolspr00050000000020)

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Old news on Longview
by Duane330＠aol.com 07 Jul '08

07 Jul '08

Moody's release on Longview Power Llc Wed Feb 7, 2007 7:59 pm GMT Market News (The following statement was released by the ratings agency) Feb 7 - Moody's Investors Service has assigned a Ba3 rating to Longview Power, LLC's $1.1 billion senior secured credit facilities, including $900 million in term and construction loans, a $100 million revolver, and a $100 million synthetic letter of credit facility. The outlook is stable. Along with $930 million of equity, proceeds of the term and construction loans will be used to help finance the construction of a $1.8 billion coal-fired power plant. The revolver will be available to fund working capital needs while the synthetic LC will be used to fulfill the debt service reserve requirement upon substantial completion and post LCs to the project's counterparties. The Ba3 rating reflects the strong economics of the project, driven by low variable costs. Supported by the significant equity commitment, projected operating company financial metrics are robust for a single-asset merchant plant despite the high capital costs. According to Moody's analyst Aaron Freedman, these fundamental strengths offset multiple risks, related to both construction and operations, though most of these are adequately mitigated while few are very significant on their own. Longview will be a 695 MW supercritical pulverized coal-generating station with an 8,600 Btu/kWh heat rate located in Maidsville, WV, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project sponsor is a fund managed by First Reserve, a private equity firm specializing in energy industry investments. The developer is GenPower LLC. The plant will have a five year, 300 MW power purchase agreement (PPA) with PPL Energy Plus for energy and capacity (guaranteed by PPL Energy Supply, LLC; Baa2 sr. sec.), with the balance of its capacity and energy expected to be sold on a merchant basis in PJM's wholesale energy and capacity markets. The project's very low variable costs are expected to result in around the clock dispatch. The project will be constructed by Aker Kvaerner Songer, with equipment including the turbine island supplied by Siemens North America and the boiler supplied by Foster Wheeler pursuant to a separate fixed price, date certain engineer-procure-construct (EPC) contracts wrapped by a coordination agreement. Aker Kvaerner SA and Siemens North America will provide a joint and several guarantee of their subsidiaries pursuant to the coordination agreement, including performance and liquidated damages. The boiler design incorporates a first-of-its kind design innovation intended to improve efficiency and reduce operating costs. Coal is expected to be provided by an adjacent mine through a long term supply contract; currently, however, only half of the facility's expected demand has been secured with a binding letter of intent. Water supply will be provided from water pumped from nearby flooded mines and treated by a non-profit joint-venture to which Longview is a party. The water treatment process, which involves a novel application of existing technology, has reportedly garnered environmental support for the project. Moody's has identified the following project strengths and weaknesses: Strengths/Opportunities - Robust projected financial metrics at the operating company are supported by significant equity contribution, including potential additional debt issued by an intermediate holding company. - With good economics resulting from low variable costs, the project is expected to dispatch whenever available. - Efficient design with a heat rate up to 10% lower than new conventional sub-critical plants results in lower fuel requirements and emissions, while the relatively large boiler allows greater use of cheaper, unwashed coal. - Located adjacent to a coal mine that is expected to provide a long-term source of low cost, high quality fuel, helping to reduce transportation and coal washing costs relative to alternatives and resulting in a delivered cost 30% lower on a BTU basis. - Additional locational advantages include proximity to the Monongahela River, which provides access to alternative sources of fuel and a potential backup water supply, a limestone quarry 10 miles away, and a nearby ash landfill. - 300 MW PPA locks in energy and capacity prices for 43% of the project's 695 net capacity for five years with an investment grade counterparty. Capacity payments commence June 1, 2011, but energy payments do not commence until January 1, 2012, ten months after scheduled substantial completion. - Long-term firm transmission rights have been secured to various nodes in PJM, assuring access to PJM's well established, transparent, and liquid wholesale energy market. PJM is projected to demonstrate continued growth in demand and a reduction in reserve margins, helping to sustain an expected robust pricing environment. - Adequate construction risk mitigants include a joint-and-several guarantee provided by experienced, reputable contractors of their obligations under the fixed-price, date-certain EPC contract, adequate liquidated damages, and a reasonable provision for contingencies in the construction budget. - Financing and corporate documentation will provide standard project lender protections and effective ring-fencing, including a waterfall, a conservative restricted payments test, and dividend limitations, with a 100% cash sweep after restricted payments that is expected to result in rapid debt paydown under the sponsor's base case scenario. Weaknesses/Risks - Merchant risk, particularly in the first year of operation, exposes the project to potential wholesale power market volatility. - PJM's new capacity market price setting mechanism is unproven and could produce lower than expected capacity revenues, though these are not expected to account for a significant portion of the project's total revenues. - High capital costs ($2,200/ net kW excluding fees and interest during construction), due in part to use of supercritical technology. - Prospect of a significant amount of additional leverage at the holding company could reduce the rate of senior debt paydown and increase refinancing risk, though the potential impact is limited by deep structural subordination and the expectation that interest on the holding company debt will either be equity funded or become payment-in-kind (PIK) if the operating company's conservative restricted payments test is not met. - Significant portion of the equity commitment is provided by an unrated entity, albeit one with ample financial resources. No bank LC backstops this portion of the equity, which is not expected to be provided until midway through construction. Failure to provide the equity could result in an insufficiency of funds to complete construction. - Developer's lack of significant experience with coal plants could increase risk of change orders, cost overruns, and operational challenges. - Construction risk - this is a complex, greenfield project with new technology. Additionally, the debt service reserve fund LC will not be issued until substantial completion is reached, which could cause liquidity problems in the event of a delay in completion. - Already high projected water supply costs could potentially exceed expectations due to uncertainties relating to the cost of pumping and treatment of water in sufficient quantities to meet expected demand. - Coal costs could potentially exceed expectations due to issues related to the ability of the adjacent mine that is the expected source of supply to produce sufficient quantities of coal to supply the plant's full requirements at projected cost levels. Alternative sources of fuel are expected to be significantly more costly. - Absence of signed operating agreement could result in higher operating and maintenance costs than currently projected. Operating risks are potentially higher t **************Gas prices getting you down? Search AOL Autos for fuel-efficient used cars. 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WV-DEP: 2009 Proposed Rules.
by Duane330＠aol.com 03 Jul '08

03 Jul '08

=========================================================== Thursday, July 3, 2008 @ 5:37 PM =========================================================== Public Notice -- 2009 Proposed Rules The West Virginia Department of Environmental Protection has scheduled public hearings for its 2009 proposed legislative rules. All hearings will take place at the DEP’s Charleston headquarters, 601 57th Street S.E., Charleston, WV 25304. Oral and written comments will be limited to the proposed revisions and will be made a part of the rulemaking record. Copies of the rules are available from the Secretary of State’s office or from the DEP at www.wvdep.org/2009rules after Monday, July 7. You may also obtain hardcopies of the information by calling the phone numbers listed below. Written comments may be submitted to the Public Information Office at the above address. Comments may also be e-mailed to comments(a)wvdep.org. The hearing dates, locations and comment deadlines are as follows: Secretary’s Office 60CSR3 – Voluntary Remediation and Redevelopment Rule The public hearing will take place at 6 p.m. on August 4, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. For more information call 304-926-0455. Division of Air Quality 45CSR1 – Control & Reduction of Nitrogen Oxides from Non-Electric Generating Units as a Means to Mitigate Transport of Ozone Precursors 45CSR8 – Ambient Air Quality Standards 45CSR13- Permits for Construction, Modification, Relocation and Operation of Stationary Sources…(minor source permits) 45CSR14 – Permits for Construction and Major Modification of Major Stationary Sources of Air Pollution for the Prevention of Significant Deterioration 45CSR16 – Standards of Performance for New Stationary Sources 45CSR25 – Control of Air Pollution from Hazardous Waste Treatment, Storage and Disposal Facilities 45CSR26 – NOx Budget Trading Program as a Means of Control and Reduction of Nitrogen Oxides from Electric Generating Units 45CSR34 – Emission Standards for Hazardous Air Pollutants 45CSR37 – Mercury Budget Trading Program to Reduce Mercury Emissions The public hearing for all air quality rules will take place at 6 p.m. on Aug. 11 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. Upon authorization and promulgation of revisions to 45CSR8, 45CSR13 and 45CSR14, the DAQ will submit the rules to the U.S. Environmental Protection Agency (EPA) as revisions to the State Implementation Plan pursuant to the federal Clean Air Act (CAA). Rules 45CSR16, 45CSR25 and 45CSR34 will also be submitted to EPA to fulfill other federal obligations under the CAA, including delegations, plans and program approvals. Rules 45CSR1, 45CSR26 and 45CSR37 are proposed to be repealed. For more information on any of the DAQ rules call 304-926-0475. Division of Mining and Reclamation 38CSR2 – WV Surface Mining Reclamation Rule The public hearing will take place at 6 p.m. on August 12, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. 47CSR30 – WV/NPDES Rules for Coal Mining Facilities The public hearing will take place at 6:30 p.m. on August 12, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. For more information on any of the DMR rules call 304-926-0490. Division of Water and Waste Management 33CSR20 – Hazardous Waste Management System The public hearing will take place at 7 p.m. on August 12, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. 33CSR 24 – Hazardous Waste Management Fee The public hearing will take place at 7:30 p.m. on August 12, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. 47CSR32 – Regulations Governing Environmental Laboratories Certification and Standards of Performance The public hearing will take place at 6 p.m. on August 14, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. 33CSR22 – Assessment of Civil and Administrative Penalties (Hazardous and Solid Waste) The public hearing will take place at 6:30 p.m. on August 14, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. 47CSR56 – Assessment of Civil and Administrative Penalties (Groundwater) The public hearing will take place at 7 p.m. on August 14, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. 47CSR34 – Dam Safety The public hearing will take place at 7:30 p.m. on August 14, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. 47CSR2 – Requirements Governing Water Quality Standards The public hearing will take place at 6 p.m. on August 18, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. 47CSR 31 – State Water Pollution Control Revolving Fund Program The public hearing will take place at 7 p.m. on August 18, 2008 in the Coopers Rock Training Room. The comment period will end at the conclusion of the hearing. For more information on any of the Water And Waste Management Rules call 304- 926-0495. **************Gas prices getting you down? Search AOL Autos for fuel-efficient used cars. (http://autos.aol.com/used?ncid=aolaut00050000000007)

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MVCAC July 2008