Kansas coal plant is delayed

TOPEKA, Kan., Dec. 29 (UPI) -- Westar Energy, Inc. announced it is postponing a decision for a baseload coal plant until more research is done.

"Our forecasts continue to show annual increases in our customers' needs for electricity. With the recent increases in the estimated cost of coal plants, however, that assumption does not necessarily remain valid," said James Haines, chief executive officer of Westar. "When equipment and construction cost estimates grow by $200 million to $400 million in 18 months, it's necessary to proceed with caution. Fortunately, we have been planning well in advance of our customers' needs and are not forced into a difficult decision

today."

Before the delays, the company had indicated that it expected to announce a site for a plant by end of the year. The company cited higher equipment and construction cost estimates as the reason for the delay.

"We will continue to evaluate how best to meet our customers' needs looking at all options and monitoring market conditions," Haines said.

A spokesman said most major engineering companies and equipment manufacturers of coal-fueled power plant equipment are at full production capacity and yet are not planning on increasing their production capacity. This is causing fewer manufacturers and suppliers to bid on new projects and equipment prices have are becoming variable.