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October 29, 2014

Siting Board Receives Application for Greenup County Plant

FRANKFORT, Ky. (Oct. 29, 2014) – The Kentucky State Board on Electric Generation and Transmission Siting has received an application requesting a construction certificate for an electric generating plant and associated electric transmission line in northern Greenup County. A review has determined that the application is complete as filed Oct. 24. 2014. The application, from SunCoke Energy South Shore LLC, of Lisle, Illinois, proposes construction of a 90-megawatt (MW) plant in conjunction with a coke plant to be built on about 250 acres along the Ohio River 2 miles northeast of the city of South Shore. The site is currently in agricultural use, but is near other industrial facilities. SunCoke Energy South Shore LLC is a subsidiary of SunCoke Energy Inc., which produces coke for use in steelmaking. Coke production involves heating coal to drive off volatile compounds, leaving behind a material that is pure carbon. The proposed SunCoke plant would capture and burn the volatile compounds to produce steam, which would drive a turbine to generate electricity. The plant could generate up to 90 MW of electricity, but would typically produce 40 to 80 MW, according to SunCoke’s application. Connection to the grid would be via a 138-kilovolt transmission line to an American Electric Power Co. substation in New Boston, Ohio, a distance of about a mile. The electricity would be sold on the open, wholesale market. The application and related documents are available on the Kentucky Public Service Commission (PSC) website: http://psc.ky.gov/Home/Library?type=Cases&folder=2014 cases/2014-00162 The Siting Board is an agency within the Energy and Environment Cabinet. Under a law passed in 2002 by the Kentucky General Assembly, the Siting Board is charged with reviewing applications for merchant power plants, also known as independent power producers (IPPs), which sell electricity on the wholesale, unregulated market. -moreCommonwealth of Kentucky Kentucky State Board on Electric Generation and Transmission Siting 211 Sower Blvd. P.O. Box 615 Frankfort, Kentucky 40602-0615 Telephone: (502) 564-3940 Fax: (502) 564-3460 psc.ky.gov Steven L. Beshear Governor Leonard K. Peters, Secretary Energy and Environment Cabinet David L. Armstrong Chairman Siting Board Receives Application for Plant in Greenup County – Page 2 IPPs are not regulated by the Kentucky Public Service Commission. Applicants to the Siting Board are not required to meet the criteria set by the PSC for new facilities built by regulated utilities, and thus do not need to prove that the proposed facility is necessary to meet demand for electricity. The Siting Board considers issues such as noise, visual impact, traffic, economic impacts and effects of the proposed facility on Kentucky’s electric grid. Environmental matters such as air emissions, water quality and solid waste are the subject of separate proceedings before the Kentucky Department for Environmental Protection. By law, the Siting Board has 120 days after an application is deemed complete (180 days if a formal hearing is requested) to decide whether to approve that application. The law and associated regulations set certain requirements and deadlines for public participation in the review process. Persons or entities with a specific interest in the case may apply to the Siting Board to become parties to the case (intervenors). Intervenors are full participants in the case, with the right to request information from the applicant or other parties to the case and to cross-examine witnesses in the evidentiary hearing. Intervenors are not required to reside in the county in which the facility is proposed, but must present a specific reason for seeking intervention that is within the Siting Board’s jurisdiction. Requests for intervenor status, citing the case number and the reason for intervention, must be made in writing to the Siting Board at the above address within 30 days of the filing of a complete application. A formal evidentiary hearing may be held at the request of parties to the case or on the motion of the Siting Board. Participation in the hearing is limited to the applicants and to parties to the case. Testimony is taken under oath. Requests for a formal hearing must be made in writing to the Siting Board within 30 days of the filing of a complete application. A local public hearing will be held if requested by a local government entity and may be held if requested by at least three residents of the county in which the facility is proposed. The local public hearing would provide an opportunity for the general public to be heard by the Siting Board in an informal setting. Requests for an informal local public hearing must be made in writing to the Siting Board within 30 days of the filing of a complete application. The deadline to file requests for intervention, a formal evidentiary hearing or a local public hearing in the SunCoke case is Monday, Nov. 24, 2014. More information on the public participation process is available on the Siting Board website. Any hearings in the case will be announced as they are scheduled. The case number for SunCoke Energy South Shore LLC is 2014-00162. -more- Siting Board Receives Application for Plant in Greenup County – Page 3 By law, the Siting Board consists of the three members of the PSC, the secretary Kentucky Energy and Environmental Cabinet or his designee, the secretary of the Kentucky Economic Development Cabinet or his designee and two local members appointed by the governor to serve for a specific case. The chairman of the PSC serves as chairman of the Siting Board. In addition to the PSC commissioners, the Siting Board members for the SunCoke case are Talina Mathews, designated by Kentucky Energy and Environmental Cabinet Secretary Leonard Peters; Holland Spade, designated by Kentucky Economic Development Cabinet Secretary Larry Hayes; and two members named by Governor Steve Beshear: Greenup County Judge-Executive Robert Carpenter and South Shore resident Elinda Boyles, who is a university administrator.

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