FOR IMMEDIATE RELEASE ENRD

MONDAY, JULY 2, 2007 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

United States Announces Clean Air Act

Settlement
with Electric Utility
Utility Will Spend $650 Million to Cut Harmful Air
Pollutants
by More Than 60,000 Tons Annually
WASHINGTON – East Kentucky Power Cooperative, a coal-fired electric utility
based in Winchester, Ky., will spend approximately $650 million on pollution
controls and pay a $750,000 penalty to resolve alleged violations of the Clean Air
Act at its three plants, the Department of Justice and the U.S. Environmental
Protection Agency (EPA) announced today.

The utility will install state-of-the-art pollution control equipment to reduce

emissions of pollutants that cause acid rain and smog by more than 60,000 tons per
year. These actions will reduce annual emissions of smog-forming nitrogen oxides
by approximately 8,000 tons and sulfur dioxide by more than 54,000 tons per year
from its plants in Spurlock, Dale and Cooper, Ky., when the controls are fully
implemented. By installing these pollution control measures, the plants will emit 50
percent fewer nitrogen oxides and 75 percent less sulfur dioxide as compared to
2005 operations.

In addition, the utility will construct and demonstrate new technology to

significantly reduce sulfuric acid mist emissions, a known public health threat, from
coal-fired power plants.

“Today’s settlement is another example of the Justice Department’s continued

commitment to aggressively enforcing the Clean Air Act,” said Ronald J. Tenpas,
Acting Assistant Attorney General for the Justice Department’s Environment and
Natural Resources Division. “The emissions reductions from this settlement are
substantial, and we are pleased that East Kentucky has agreed to bring its facilities
into compliance with important provisions of the Clean Air Act.”
“This agreement will reduce harmful air pollutants by more than 60,000 tons per
year,” said Granta Nakayama, EPA assistant administrator for the Office of
Enforcement and Compliance Assurance. “Sulfur dioxide and nitrogen oxides can
cause serious respiratory problems and exacerbate asthma conditions. This
settlement will improve air quality and protect public health for the residents of
eastern Kentucky and surrounding areas.”

East Kentucky will also improve its control of particulate matter from each of the
three plants as part of the settlement.

“One of the most important things in our nation is having a healthy environment in
which our children can grow,” Amul R. Thapar, U.S. Attorney for the Eastern
District of Kentucky said. “Companies must be held responsible for the well-being
of the whole community they serve, including the health of the citizens and the
environment.”

“The combined reductions in sulfur dioxide, nitrogen oxides, and particulate matter
mandated by this settlement will greatly improve the air quality for the citizens of
Kentucky,” said Jimmy Palmer, EPA Regional Administrator in Atlanta. “This
settlement has tremendous significance for our ongoing effort to ensure cleaner air
for our citizens.”

In 2004, the United States filed a lawsuit against the utility for illegally modifying
and increasing air pollution at two of its coal-fired power plants. Specifically, the
government cited the utility for constructing modifications at its plants without first
obtaining necessary pre-construction permits and installing required pollution
control equipment. Without the required permits or pollution control equipment, the
modifications allowed the facilities to increase their electricity and steam production
rates and, as a result, emit more pollutants.

The Justice Department and the EPA have negotiated settlements with 12 coal-fired
power plants nationwide to resolve Clean Air Act New Source Review violations
and to reduce air pollution. Collectively, these settlements require the companies to
spend approximately $6 billion on pollution control equipment that, when fully
effective, will reduce emissions of harmful pollutants by more than one million tons
per year.

Today’s proposed agreement, lodged in the U.S. District Court for the Eastern
District of Kentucky, is subject to a 30-day public comment period and final court
approval. A copy of the consent decree will be available on the Justice Department
Web site at http://www.usdoj.gov/enrd/Consent_Decrees.html.

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