Treasurer criticized for plant ads

By Adam Wilmoth

Published: September 6, 2007

Oklahoma Treasurer Scott Meacham drew sharp criticism from the state's electric utilities Wednesday for appearing in newspaper advertisements critical of a proposed coal-fired power plant near Red Rock.

Meacham's picture and comments appeared in paid advertisements in The Oklahoman and Tulsa World on Sunday and Wednesday.

"We are extremely concerned that Treasurer Meacham agreed to the use of his office in an attempt to unduly influence the outcome of proceedings before the Corporation Commission,” Oklahoma Gas and Electric spokesman Brian Alford said. "He is using the office state treasurer in an inappropriate way and is participating in this process through an avenue that we find inappropriate.

"We also feel as though he is weighing in at the 11th hour when there was ample opportunity to participate in the process. We fully support the treasurer's weighing into the process through the process. Why is it here at the 11th hour that we're seeing this activity through ads purchased by third party?”

Meacham dismissed the criticism as "baseless.”

"I feel as state treasurer that I have a responsibility for the long-term economic health of this state,” he said. "I think that this decision very much will impact the long-term economy of the state. It's broader than just the decision of whether a coal-fired power plant should be built and the cost passed on to ratepayers. It's a broader policy discussion, and quite honestly I didn't see that discussion going on out there in the public.”

Meacham said he was not paid for participating in the advertisements.

OG&E, Public Service Co. of Oklahoma and the Oklahoma Municipal Power Authority last summer proposed the $1.87 billion, 950-megawatt power plant. The utilities say the coal-fired facility will save consumers money because coal costs much less than natural gas, which has been especially volatile in recent years.

Opponents including Chesapeake Energy Corp., the Quality of Service Coalition, environmental groups and industrial consumers have challenged the plan, saying coal is too dirty, construction costs are likely to rise and that the state utilities should buy Oklahoma natural gas rather than Wyoming coal.

The issue is central to a case ongoing before the state Corporation Commission for nearly five months. The issue also has reached the Oklahoma Supreme Court, and coal opponents have pledged to carry the fight to the Oklahoma Department of Environmental Quality if they are unsuccessful at the Corporation Commission.

Besides the cases in the official regulatory channels, the debate also has spread to public forums with dueling newspaper ads and executives from both sides appearing on the local television show FlashPoint.

OG&E on Wednesday also objected to the claims Meacham made in the advertisements. Meacham said the proposed plant is imprudent and financially irresponsible. He said construction costs and costs to install pollution control equipment likely will make the plant much more expensive than expected.

"It's important to note that the treasurer fails to identify the fact that the administrative law judge indicates that Red Rock will pay for itself in seven years and that our choice of Red Rock will save customers $5.5 billion over the life of the plant,” Alford said. "It's also important to note that our rates are more than 20 percent below the national average, which drives economic development in our state.”

Meacham said he participated in the ad over the advice of some of his friends and fellow politicians.

"The political soothsayers advised me not to do it,” he said. "They said it doesn't make sense to get in a fight between two Oklahoma companies. I said I have to do what I think is right. I came here to be a leader, not to be somebody who's worried about the next election.”

Participants in the Corporation Commission case presented their final arguments on Wednesday. The utilities have asked the commissioners to approve their plan to build the plant and pass the costs on to consumers. The commissioners are expected to discuss the case on Monday, and a ruling is expected by the end of the month.

Comments