KNOXVILLE (AP)-The tab for a toxin-laden ash flood at a
coal-fired power plant in Tennessee could reach hundreds of millions of
dollars, and ratepayers for the nation's largest public utility will probably
be stuck with the bill.
The total cost of cleaning up last month's accident isn't
yet clear, but the bill will be staggering. Extra workers, overtime, heavy
machinery, housing and supplies for families chased from their homes and
lawsuits are among the costs that are piling up.
And with few other places for the Tennessee Valley
Authority to turn to cover the costs, the utility's 9 million customers in
Tennessee and six surrounding states will bear the brunt in higher electricity
rate hikes in the future, TVA Chairman Bill Sansom told The Associated Press on
Wednesday.
"This is going to get into (electric) rates sooner
or later," Sansom said. "We haven't even thought about going to
Washington for it."
When a dike broke Dec. 22 at the Kingston Fossil Plant,
some 1.1 billion gallons of sludge was released from a 40-acre settlement pond,
blanketing nearly 300 acres in a rural neighborhood up to 9 feet deep in
grayish muck and spilling into the Emory River threatening drinking water.
Though Sansom said the utility hasn't totaled how much it
has spent so far, it has put more than 200 employees and contractors with heavy
equipment to work on the cleanup since the dike broke. And already, 230
families have contacted TVA for various assistance - everything from testing
their private wells to monitoring their air, erecting fences, cleaning their
driveways and providing temporary housing.
Forty of those families have joined a pending lawsuit
with several environmental groups demanding the federal courts levy fines and assure
the community is made whole. Attorneys involved expect the number of litigants
to grow into the hundreds.
Several local residents traveled to Washington to attend
a Senate hearing Thursday on the spill. "We are not looking to punish TVA,
we just want them to clean up the mess they created," said Ron Smith of
Harriman.
"We want it out of there," Teresa Riggs said of
the sludge. "We are afraid for our health."
There are potentially huge claims for class-action
damages. Environmental advocate Erin Brockovich, made a celebrity by Julia
Roberts' Oscar-winning movie about a community's fight against contaminated
water, and a New York law firm are coming to meet victims this week.
"I've heard some people say billions," said
Steve Smith, director of the Knoxville-based Southern Alliance for Clean
Energy. "I don't believe that number. I think it is probably hundreds of
millions. I mean, I don't think they are going to get out of this thing for
less than $100 million."
Everyone points to a similar ash spill in 2005 at PPL
Corp.'s Martins Creek power plant in Pennsylvania as a clue to the costs facing
TVA. Some 100 million gallons of ash and water escaped through a defective
drain in a lined sediment pond, about a tenth of the size of the TVA flood.
The PPL spill covered a much smaller area, coating only
20 acres and affected no homes. Most toxins flowed into the Delaware River,
where they were vacuumed up. That cleanup cost $37 million, including a $1.5
million fine.
"Ours was much smaller in a number of ways," PPL
spokesman Paul Wirth said. "If you look at the ash alone, we had 85,000
cubic yards escape. They (TVA) had 5.4 million. That's less than 2 percent of
the amount of ash that came out of our basin."
The TVA also faces costs if it changes the way it stores coal
ash to prevent future disasters. TVA is likely to install a dry ash disposal
system at Kingston at untold cost. After a leak at the Kingston dike in 2003,
TVA considered switching from wet ash disposal to dry ash, but considered the
$25 million estimate too expensive. Dry disposal increases chances the ash
becomes airbone, but eliminates the need for sedimentation ponds.
"I can tell you it is going to be a lot more (to
convert now) than the $25 million they refused to spend back then to make sure
the structure is safe," said Bruce Nilles, director of the Sierra Club's
national coal campaign.
A conversion to dry ash disposal at Kingston could prompt
demand for similar safeguards at five other TVA wet-ash coal-fired power plants
in Tennessee, Kentucky and Alabama. TVA gets 60 percent of its electricity from
coal and has five coal-fired stations already with dry ash disposal.
If ratepayers do face an electricity increase, it would
come on the heels of another hefty hike. TVA adopted a 20 percent electric rate
increase last fall to support a $12.6 billion budget. The rate hike was the
largest in three decades and blamed largely on rising fuel costs.
As a federal corporation, TVA can issue bonds but can't
issue stock for financing, so its options to generate more money are limited.
The cleanup bill also comes on top of hefty debt. While TVA has been able to
trim its bonded debt by more than $2.5 billion since 1997 to about $25 billion,
TVA watchers have worried the federal agency could hit its congressional limit
of $30 billion if it pursues plans to complete or build more nuclear plants.
Sansom said TVA won't shirk its duty to victims of the
ash spill even though it will be expensive to recover.
"We are embarrassed about it; wished it didn't
happen," Sansom said. "But we have got to do what we can to make
everything right."