I don’t know enough about coal gasification or the law signed by the Governor to try to explain it, so I’ll just link to the article by Lesley Stedman Weidenbener. It involves a convoluted system of contracts and a thirty year commitment. The Citizen’s Action Coalition has its concerns:
Kerwin Olson, program director for the Citizens Action Coalition of Indiana, said that last year coal prices doubled even as natural gas prices were going down.
“Certainly the price of coal is going to affect the cost of this synthetic natural gas,” he said. “As far as the ratepayer impact goes, it’s unthinkable for us that the state would force ratepayers to enter into a 30-year contract with no review of the price whatsoever.
“The way we see it, that’s an erosion of consumer and ratepayer protection.”
Back in the late 90s when I worked for LSA, the Citizen’s Action Coalition was raising concerns about electricity deregulation even as lobbyists for Enron and others were pushing for it. California went through an electricity deregulation debacle after it passed such a measure and Enron has gone. So, when the CAC sounds the alarm bells, it catches my attention.