The Federal Energy Administration has issued construction orders to 41 companies requiring certain proposed new powerplants to be built with coal burning capability. Issuance of these construction orders will ensure that the powerplants or boilers will be designed and constructed so that coal can be used as their primary, energy source.

The construction orders involve 47 generating stations with a total of 74 powerplants in 25 states. Their issuance is part of a continuing effort by FEA to convert electric utilities and other major fuel burning installations to the use of coal, as required by Congress in the Energy Supply and Environmental Coordination Act of 1974 (ESECA).

The program is considered essential to carrying out the President's commitment to reduce petroleum imports and to reduce the impact of this nation's natural gas shortage.

FEA Administrator Frank G. Zarb noted that "American consumers are paying a dear price because of our increasing vulnerability and dependence on foreign oil. Unless our program for self-sufficiency succeeds, the cartel nations are in a position to continue to increase prices paid by the American consumers."

The construction orders apply to certain powerplants in the early planning stage. As required by ESECA, in each case FEA has found that altering the

design and construction of the powerplant would not impair the reliability or E-75-216; 01960, 01344,

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adequacy of service, and availability of an adequate and reliable supply of coal would be reasonably expected for the plants.

Also FEA has found that no significant adverse effect is anticipated from any contractual commitment for the construction of the powerplants; the companies have, the capability to recover any increase in projected capital investment needed as the result of a construction order; no significant revenue would be lost due to a delay in the commencement of the sale or exchange of electric power caused by a construction order; and no significant adverse effect would occur from the relevant regulations or policies of any state or local agency with juridiction over the sale or exchange of electric power by powerplants.

A list of the companies receiving construction orders is attached.