Articles by Ted Nace

Legislators protest Gates family’s stake in Big Stone II

Unlike his bridge buddy Warren Buffett, who recently canceled six planned coal projects, Bill Gates is still pushing coal. Cascade Investment Management, his personal investment company, is the largest stakeholder (9 percent) in Otter Tail Corporation, the lead sponsor of the controversial Big Stone II coal project.

Last week, eight Minnesota legislators, led by Rep. Jean Wagenius (DFL) of Minneapolis and Sen. Ellen Anderson (DFL) of St. Paul, wrote to Gates, asking him to visit Minnesota in order to investigate green investment opportunities that would "align the values of your foundation with your investment strategy."

In April, NASA's James Hansen appealed to Minnesota Gov. Tim Pawlenty to oppose Big Stone II: "You can help inspire your state and the rest of the country to take the bold actions that are essential if we are to retain a hospitable climate."

Maine becomes third state to pass tough coal law

Yesterday, Maine Gov. John E. Baldacci signed LD 2126, "An Act To Minimize Carbon Dioxide Emissions from New Coal-Powered Industrial and Electrical Generating Facilities in the State." The law, which was sponsored by Rep. W. Bruce MacDonald (D-Maine), requires the Board of Environmental Protection to develop greenhouse gas emission standards for coal facilities. It also puts a moratorium in place on building any new coal plants until the standards are developed.

Three states (Calif., Wash., and Maine) as well as New Zealand now have laws effectively blocking new coal plants that don't meet a carbon dioxide emission standard roughly equivalent to that of a combined cycle gas plant (i.e., 1,100 pounds of carbon dioxide per megawatt hour). That standard could be met with even a moderate level of sequestration, but so far no utilities have stepped to the plate. As a result of Washington state's standard, Energy Northwest's proposed Pacific Mountain Energy Center in Kalama was rejected by regulators in November because its plans for carbon capture and sequestration were judged to be merely "a plan to make a plan."

Laws such as Maine's LD 2126 are valuable in blocking plants that merely declare themselves "carbon capture ready." As NRDC's David Hawkins told Congress (PDF): "A 'carbon sequestration optimized' coal power plant is not defined and could mean almost anything, including a plant that simply leaves physical space for an unidentified black box. If that makes a power plant 'capture-ready' Mr. Chairman, then my driveway is 'Ferrari-ready.'"

Why did the guru cancel six coal plants?

One of the biggest climate stories of 2007 never made it to the business pages. It's about how Warren Buffett, with no fanfare, quietly walked away from coal, cancelling six proposed plants.

Buffett used to love coal. His involvement with it began when Berkshire Hathaway bought MidAmerican Energy Holdings in 1999. MidAmerican was a big operator of coal plants, and with natural gas prices edging toward a huge leap upwards -- bringing coal back into favor -- it appeared to be a typically savvy Buffett move.

In 2006, Buffett picked up another utility, PacifiCorp, which includes Rocky Mountain Power and operates in Calif., Idaho, Ore., Utah, Wash., and Wyo. Again, it seemed like a smart play, bringing MidAmerican's expertise with building and running coal plants to a region of the country with lots of coal. Sure enough, in the fall of 2006, PacifiCorp presented regulators with plans [PDF] for six (or, in some scenarios, seven) coal plants in Utah and Wyo. over the next 12-year time period, representing approximately 3,000 megawatts of new capacity.

Dynegy targeted by Sierra Club in new anti-coal campaign

Check out Clean Up Dynegy, the brand new website for the Sierra Club's campaign against the company Sierra calls "America's Coal-Fired Polluter Number 1." The campaign is significant in that it represents the first attempt by anti-coal forces to single out a single company on a nationwide basis.

It kicked off in late February with mass call-ins to Dynegy headquarters originating from twenty states -- "thousands of calls," according to the Sierra Club. Already, the campaign seems to have hit a nerve, with Dynegy's CEO, Bruce Williamson, lashing out that his company is being unfairly picked on. It probably didn't help Williamson's morale that he was also just picked as one of five executives to receive 2008 "Fossil Fool of the Year" awards.