Virginia coal-fired power plant approved

America's No 2 utility wins right to build $1.8bn power plant | Environment | guardian.co.uk

The vote was unanimous, with even board members who favour a carbon tax calling for more coal to burn.

"We need more power in this country … and if we get brownouts, we will quickly lose support for carbon controls," pollution control board member Bruce Buckheit told the Times-News of rural Kingsport, Tennessee.
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Although coal industry analysts describe a growing scepticism about new production until the dream of carbon-trapping plants is achieved, some see the beginnings of a bum rush for new construction.

Because the next president, whether he is Barack Obama or John McCain, aims to control emissions through a "cap and trade" system, electric utilities such as Dominion have the chance to control their pollution destiny.

"The utility industry is asking for a free allocation system, where [the government] would give [carbon] credits away based on historic past emissions levels," Cale Jaffe, a staff attorney at the nonprofit Southern Environmental Law centre, said.

Thus if companies build new power plants now, Jaffe explained, they stand to benefit from larger carbon credits in the future under a free allocation system. "You have a perverse reduced incentive … they want to build as many coal plants as possible," he added.