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Little Rock - The Arkansas Court of Appeals says state regulators didn't adequately review plans for a $1.6 billion coal-fired power plant in Hempstead County and has rejected a permit allowing its construction.
The court on Wednesday ordered the Public Service Commission to conduct a new hearing on whether the plant should be built near Fulton. Judges on the court panel says the PSC needs to consider whether its decision to approve the plant was arbitrary.
According to the court, the PSC failed to comply with a law that requires utilities to demonstrate environmental compatibility and public need. It said a study cited by Southwestern Electric Power Co. provided "little if any support" for the plant.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
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