TXU may be sued over plans for coal plant

Dallas-based TXU faces a possible lawsuit over its plans for a coal-burning power plant in Central Texas ”“ a lawsuit financed by a Dallas oilman and developer with ties to top GOP officeholders and Texas environmentalists.

Albert Huddleston, a major campaign donor to President Bush and Gov. Rick Perry, is also a partner with musician and Dallas resident Don Henley in conservation efforts at Caddo Lake in East Texas and has been involved in other environmental issues.

This week, Mr. Huddleston entered the fight over clean air and Texas’ future electricity supplies. The Dallas law firm of Locke Liddell & Sapp sent a letter to TXU on Tuesday saying that two environmental groups, including one founded by Mr. Huddleston, intend to sue TXU in federal court over alleged violations of the Clean Air Act in the company’s permit application for a coal-burning plant near Temple.

The letter, signed by attorney Frederick W. Addison III, alleges that federal law required TXU to consider technology at its proposed Oak Grove plant to cut emissions below the levels the company and Texas officials are proposing.

The letter also seeks action to reduce carbon dioxide emissions, responsible for global warming, and notes that the law requires health impact studies.

Oak Grove’s two coal-burning units are among 16 proposed by Texas power companies. TXU plans to build 11 of the new units.

The groups threatening the TXU suit are the CleanCOALition, with Mr. Huddleston as president, and Robertson County Our Land Our Lives, a group organized to fight the Oak Grove plant.

“CleanCOALition is in support of the use of any fuel so long as the plants and facilities that we need for power adhere to the Clean Air Act and embrace the best available control technology,” Mr. Huddleston said. That should be an ongoing obligation as long as the plant is in service, he said.

The Oak Grove plant’s permit is pending before the Texas Commission on Environmental Quality.

TXU spokeswoman Kim Morgan said the company sees the lawsuit threat as “a very bizarre attempt” to circumvent the state permit process by improperly taking the Oak Grove case to federal court. “This is yet another attempt to create a litigious environment,” she said.