Department of Justice Seal Department of Justice
MONDAY, JULY 2, 2007
(202) 514-2007
TDD (202) 514-1888

United States Announces Clean Air Act Settlement
with Electric Utility

Utility Will Spend $650 Million to Cut Harmful Air Pollutants
by More Than 60,000 Tons Annually

WASHINGTON – East Kentucky Power Cooperative, a coal-fired electric utility based in Winchester, Ky., will spend approximately $650 million on pollution controls and pay a $750,000 penalty to resolve alleged violations of the Clean Air Act at its three plants, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today.

The utility will install state-of-the-art pollution control equipment to reduce emissions of pollutants that cause acid rain and smog by more than 60,000 tons per year. These actions will reduce annual emissions of smog-forming nitrogen oxides by approximately 8,000 tons and sulfur dioxide by more than 54,000 tons per year from its plants in Spurlock, Dale and Cooper, Ky., when the controls are fully implemented. By installing these pollution control measures, the plants will emit 50 percent fewer nitrogen oxides and 75 percent less sulfur dioxide as compared to 2005 operations.

In addition, the utility will construct and demonstrate new technology to significantly reduce sulfuric acid mist emissions, a known public health threat, from coal-fired power plants.

“Today’s settlement is another example of the Justice Department’s continued commitment to aggressively enforcing the Clean Air Act,” said Ronald J. Tenpas, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The emissions reductions from this settlement are substantial, and we are pleased that East Kentucky has agreed to bring its facilities into compliance with important provisions of the Clean Air Act.”

“This agreement will reduce harmful air pollutants by more than 60,000 tons per year,” said Granta Nakayama, EPA assistant administrator for the Office of Enforcement and Compliance Assurance. “Sulfur dioxide and nitrogen oxides can cause serious respiratory problems and exacerbate asthma conditions. This settlement will improve air quality and protect public health for the residents of eastern Kentucky and surrounding areas.”

East Kentucky will also improve its control of particulate matter from each of the three plants as part of the settlement.

“One of the most important things in our nation is having a healthy environment in which our children can grow,” Amul R. Thapar, U.S. Attorney for the Eastern District of Kentucky said. “Companies must be held responsible for the well-being of the whole community they serve, including the health of the citizens and the environment.”

“The combined reductions in sulfur dioxide, nitrogen oxides, and particulate matter mandated by this settlement will greatly improve the air quality for the citizens of Kentucky,” said Jimmy Palmer, EPA Regional Administrator in Atlanta. “This settlement has tremendous significance for our ongoing effort to ensure cleaner air for our citizens.”

In 2004, the United States filed a lawsuit against the utility for illegally modifying and increasing air pollution at two of its coal-fired power plants. Specifically, the government cited the utility for constructing modifications at its plants without first obtaining necessary pre-construction permits and installing required pollution control equipment. Without the required permits or pollution control equipment, the modifications allowed the facilities to increase their electricity and steam production rates and, as a result, emit more pollutants.

The Justice Department and the EPA have negotiated settlements with 12 coal-fired power plants nationwide to resolve Clean Air Act New Source Review violations and to reduce air pollution. Collectively, these settlements require the companies to spend approximately $6 billion on pollution control equipment that, when fully effective, will reduce emissions of harmful pollutants by more than one million tons per year.

Today’s proposed agreement, lodged in the U.S. District Court for the Eastern District of Kentucky, is subject to a 30-day public comment period and final court approval. A copy of the consent decree will be available on the Justice Department Web site at