NEW MADRID POWER PLANT PLANS MAJOR MODIFICATIONS

NEW MADRID -- Associated Electric Cooperative has scheduled major modifications at its power plant near New Madrid this fall.

The project will pave the way for reduced sulfur-dioxide emissions from the coal-fired generating units.

The modifications, which get under way Oct. 1, will include changes to boilers and ductwork, along with the addition of a dry-ash handling system and construction of a new ash-disposal pond.

Construction also will include upgrading of the industrial park rail spur, a rail loop for unloading coal cars, and moving of roads to the Noranda Aluminum plant, the power plant and the port authority.

The construction will take place from October into spring of 1993.

The project signals a major operational change at the power plant, which supplies New Madrid, Noranda and electric cooperatives with electricity.

The power plant currently burns high-sulfur coal from Illinois and western Kentucky that is transported along the Mississippi and Ohio rivers. Beginning in April 1994, low-sulfur Wyoming coal will be delivered by rail.

Jim McClure, plant manager, said people in Southeast Missouri will be gaining more than cleaner air.

"This fuel switch will position the power plant as one of our most valuable generating resources, ensuring a stable work force for some time to come," McClure said.

Switching to low-sulfur coal was Associated's strategy for complying with emissions reductions mandated by the Clean Air Act Amendments of 1990.

Another compliance option Associated considered was installing a flue-gas desulfurization facility, or scrubber, on the power plant.

Installing scrubbers would be substantially more expensive than the chosen plan; about $200 million compared with $97 million. Another contributing factor was that Associated will be lowering fuel costs by switching to less expensive Wyoming coal, thus saving money for consumers.

The Rural Electrification Administration approved the project after review of a Borrower's Environmental Report and a 30-day public comment period.