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Proposed Entergy power plant easing some fears

Proposed Entergy power plant easing some fears
A coal train stops near White Bluff power plant near Redfield, Ark., Monday, June 2, 2014. (AP Photo/Danny Johnston)

There was concern about the loss of tax revenue when Entergy’s White Bluff power station closes in the next couple of years, but those concerns were replaced by relief after the news broke last week that another power station was being proposed for the same Jefferson County location.

“There was doubt in my mind,” White Hall Mayor Noel Foster said. “I was concerned.”

Entergy sent out letters earlier this month to community and government leaders giving them a heads up on the company’s plans to build a natural gas-fired power plant adjacent to the coal-fired White Bluff plant. That plant is being closed because of its high levels of pollution and a related agreement that stemmed from a federal lawsuit filed by environmental groups.

A new proposed natural gas-fired plant, referred to as Jefferson Power Station, is expected to produce 754 megawatts — less than half of the 1,659 megawatts White Bluff produces. But the natural gas-fired plant will create electricity in a way that produces about half of the carbon dioxide created by coal-fired plants, with CO2 being a chief contributor to global warming.

The utility said on an online site that the use of natural gas would create electricity “in a way that supports customers’ sustainability goals and our path toward decarbonization.”

The property tax revenue from White Bluff, which has been in operation for more than four decades, has been an enormous contributor to the wealth of the White Hall School District. Superintendent Gary Williams said the district receives somewhere between $1 million and $1.4 million a year from the White Bluff operation.

“Yes, I was worried when I learned of the closure,” he said. “That is a big part of our tax structure. It’s definitely something we’ve been tracking the past couple of years. We’ve been looking at how we would operate when that operation closes. I was nervous.”

The news about the replacement plant, however, eased some of those fears, he said.

“I’m super excited,” he said. “I feel as though we’re in a good spot. Everything looks promising.”

Williams said a new power plant would be good for White Hall and Jefferson County but also for the state as it looks for ways to meet the growing need for electricity.

Entergy has asked for a rate increase to pay for the construction — a spokesman was unable to say what the project will cost — and the company said the project will still need to be approved by state and federal authorities. Online sites put the cost of building a natural gas-fired plant at roughly $1 million per megawatt produced.

“We don’t want to count our chickens before they’re hatched,” Williams said. “But based on what could have happened, we are certainly relieved.”

Beyond the tax proceeds to the county and school district, there are other benefits to having the project built in the area. Entergy said 700 to 800 jobs would be needed for the construction, which would start in 2026 and end in 2029.

“There will be hundreds of jobs. It’s like the ‘demil,'” he said, referring to the Pine Bluff Chemical Agent Disposal Facility at the Pine Bluff Arsenal that ran from 2005 to 2010 and employed some 1,200 people. “This will impact White Hall and Redfield, really, all of northern Jefferson County, and up into Little Rock.”

Entergy said local businesses “such as restaurants, stores and hotels could also benefit indirectly from the infusion of construction workers and activity during the construction portion of the project,” Foster agreed.

And it’s not a dream,” he said. “This is happening, and it’s great news.”

Redfield also stands to experience a significant shot in the economic arm by such a project. Redfield Mayor Roben Brooks said she was elated by the proposal.

“We’re hoping that this will be great news,” she said. “We all appreciate Entergy in every way. This is very great for our city. We’re very proud to have Energy coming in here to build a new power plant.”

Brooks says she hopes the construction jobs will spur business and population growth in Redfield.

“I always say, ‘Don’t forget about Redfield,'” she said.

“We have a lot to offer, we truly do, and I’m hoping more people move here. We’re hopeful for that. We welcome people to Redfield and we certainly welcome Entergy with their project.”