ST. PETERSBURG - Progress Energy Inc. plans to invest $1 billion over 10 years in Florida to cut air pollution, including improvements at a coal-burning plant in Citrus County that environmental activists claim is one of the worst polluters in the nation.
Bob McGehee, Progress Energy chairman and chief executive officer, announced the plan in response to environmental concerns by shareholders and others at the company's annual meeting in St. Petersburg, where its Progress Energy Florida Inc. subsidiary is based.

``We will take this very seriously,'' McGehee said at the morning meeting. He also said the company is making a like environmental investment in plants in North Carolina, Progress Energy's headquarters state. ``It's very important that we understand the risk going forward. We owe it to our shareholders and our customers.''

McGehee's pledges came after a group of shareholders and environmental advocates said earlier that Progress Energy ranks sixth among U.S. polluters contributing to global warming.

Stephen Smith, a shareholder and executive director of the Southern Alliance for Clean Energy, said Progress Energy Florida is one of the worst emitters of carbon dioxide.

A report released Wednesday by the Environmental Integrity Project, a Washington, D.C.-based environmental advocacy group, asserts that Progress Energy Florida's coal- burning power plant at Crystal River in Citrus County emitted 15.9 million tons of carbon dioxide in 2004, ranking it the 20th worst in the U.S.

Some studies contend that carbon dioxide contributes to the so-called greenhouse effect, the idea that emissions from automobiles, power plants and other sources are slowly warming the earth's climate.

``The track record on this issue is not one of leadership at Progress Energy,'' Smith said.

Still, Progress Energy Florida - which generates and delivers power to about 1.5 million customers in all or part of 35 Florida counties - has avoided the kind of federal regulatory enforcement undergone by its counterpart across Tampa Bay, TECO Energy Inc.

In fact, when considering the pounds of carbon dioxide emitted per megawatt-hour of electricity, Crystal River drops out of the top 50 worst polluters. But Tampa Electric Co.'s Big Bend power station is ranked No. 42 nationally by that measurement, according to the report from the Environmental Integrity Project.

Nonetheless, Tampa Electric, a subsidiary of TECO Energy, is credited by environmentalists for helping clear the air over Tampa Bay by investing $1 billion in pollution-control technologies, including work under way at Big Bend, near Apollo Beach.

Tampa Electric's antipollution efforts came after the federal government sued Tampa Electric, once considered one of the dirtiest utilities in the country. By contrast, Progress Energy has not been sued by the government to force an environmental cleanup.

Progress Energy's latest look at its environmental stance was prompted by Smith's shareholder proposal. In March, the company reached an agreement with Smith to study its environmental impact, noting that federal carbon dioxide regulations could tighten. The report is due March 31, 2006.

Smith applauded Progress for doing the study but said the utility can show it is serious about helping clear the air and slowing global warming by pushing for comprehensive federal energy legislation, starting a renewable energy program and working to cut emissions.

During the annual meeting, McGehee responded to a letter he received from Smith. He said the company will spend $1 billion in Florida and $1 billion in the Carolinas to cut emissions. The company also is involved in a reforestation project and is studying renewable energies, which to date have proven to be cost-prohibitive, McGehee said.

``We take very seriously the impact of our power plants,'' he said. ``We believe we need to address global warming at the national level.''

Aaron Perlut, Progress Energy spokesman, said the company meets the U.S. Environmental Protection Agency's standards for clean air. But the company still must do more, including looking at fuel cell and hydrogen technology to generate electricity, he said.

``We are crawling before we can walk,'' Perlut said.
 

Source: tbo.com