KY and TN Governor's Energy Policy Actions

Last week, Governor Patton issued an order imposing a moratorium on accepti=
ng new power plant applications for 6 months. He also ordered the PSC and =
Env. Protection Cabinet to study the effects of new plants on the environme=
nt and the issues related to the impact on the grid, siting issues and econ=
. dev. He also directed the agencies to give particular attention to prese=
rving and enhancing the use of KY coal. Enron recently filed an applicatio=
n at the Env. Protection Cabinet for an air permit on the Calvert City site=
. Ben Jacoby informed me that we are going to have to change the applicati=
on. Based on his consultant's read of the order, we will be able to do so =
w/o being subject to the moratorium. Gov. Patton has also set up an energy=
policy committee. Bill Butler, with the local chamber of commerce for Cal=
vert City has apparently been appointed to the committee. Ben has worked c=
losely with Bill over the years to get Calvert up and running. I am monit=
oring this committee for Ben. =20

Also, in TN, the Governor is going to form an inter-agency work group on en=
ergy policy. I have received what appears to be an internal document on th=
is. Robert Gowan at Stoke Bartholomew thinks this is being motivated by TV=
A and their concerns on air emissions limitations. Apparently there are go=
ing to be 2 phases to the work group -- the first is going to be to improve=
state government's use of energy. The state just this week has enthusiast=
ically agreed to EEIS' proposal for the FASER upgrade. They have asked EEI=
S to provide input on phase 1. I have spoken with Pam Rosen who has agreed=
to keep me in the loop on anything having to do with the working group. P=
hase 2 is going to focus on an overall state energy policy. As you know, E=
NA has a sight under development outside of Memphis and EES is on the short=
list in Nashville for a facility deal. I have notified Ben Jacoby and Je=
ff Ader on these developments. I will continue to follow this issue.

As these states get these groups underway, I will keep you posted. We will=
have to take a close look at these and determine whether to get involved a=
nd if so, how.