UPDATE: DOJ, Ill. Sue Edison International Unit For Clean Air Violations
August 27 2009 - 1:32PM
Dow Jones News
The federal government and the state of Illinois sued an Edison
International (EIX) unit Thursday for alleged Clear Air Act
violations at six Illinois power plants.
Federal and state officials allege that Edison unit Midwest
Generation made major modifications to six coal-fired power plants
without installing required pollution-control equipment.
The lawsuit, filed in federal court in Chicago, alleges the
power plants have been illegally emitting "massive amounts" of
pollutants.
Regulators are asking the court to order Midwest Generation to
install new pollution-control technologies at the plants. They are
also seeking civil fines for the alleged violations.
A U.S. Justice Department spokesman declined to comment on the
total amount of fines that federal and state regulators are
seeking.
The lawsuit potentially could expose the company to tens of
millions of dollars in fines and pollution-control costs.
Regulators allege that the Clean Air Act violations have
occurred for a decade, and maximum fines for such violations range
from $27,500 to $37,500 per day.
Midwest Generation spokesman Douglas McFarlan said the company
reached a major agreement with Illinois in 2006 that required it to
operate under some of the strongest coal-plant regulations in the
country.
Midwest Generation is open to exploring a possible settlement,
McFarlan said, but added, "We have a progressive record of
environmental performance and leadership that we will be prepared
to vigorously present and defend."
He said many of the power-plant modifications at issue in the
case took place before Midwest Generation bought the
facilities.
With Thursday's lawsuit, the Justice Department has sued three
coal-fired power-plant operators this year for Clean Air Act
violations. The other two cases involve Westar Energy Inc. (WR) and
Louisiana Generating LLC, a unit of NRG Energy Inc. (NRG).
Shares of Edison International traded recently at $33.79, down
28 cents, or 0.8%.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com