AP Top Kansas News at 5:45 a.m. CDT

Thursday, July 2, 2009

EPA to Kansas: Start over on coal plant proposal

TOPEKA, Kan. (AP) -- A federal official has told Kansas to start over its review process for a proposed coal-fired electric plant in southwest Kansas that Gov. Mark Parkinson had endorsed.

Sunflower Electric Power Corp., based in Hays, plans to build the electric plant in Finney County. Sunflower had wanted to build two plants, but Rod Bremby, the state's secretary of health and environment, rejected an air-quality permit for them in October 2007, citing their potential carbon dioxide emissions.

Parkinson brokered a deal with Sunflower in May, allowing one new coal-fired plant and passage of legislation aimed at promoting renewable energy and conservation, something that had been blocked by lawmakers who supported the utility's effort.

Sunflower then reapplied for an air-quality permit last month.

In a letter to Bremby on Wednesday, William Rice, the Environmental Protection Agency's acting regional administrator in Kansas City, said the state must treat the proposal as a "new project."

Earthjustice, a national group that still hopes to block the new coal plant, saw Rice's letter as a victory and believes it could delay construction 18 months.

------ CenturyTel completes purchase of Embarq

KANSAS CITY, Mo. (AP) -- With the completion of its purchase of Embarq Corp. Wednesday, CenturyTel Inc. becomes one of the largest traditional telephone companies in the country.

But the combined company, to be renamed CenturyLink, will have to answer concerns about how quickly it can expand high-speed Internet service and survive the continued exodus of traditional telephone customers.

"Our approach is really to focus on being the premiere broadband service provider in our markets," said Glen Post III, the combined company's chief executive officer in an interview with The Associated Press Wednesday. "Broadband is where the future is in this business."

Monroe, La.-based CenturyTel announced in October it was buying the much larger Embarq for $5.8 billion in stock and taking on $5.8 billion of the Overland Park, Kan.-based company's debt. The move comes as the traditional telephone industry deals with a steady exodus of customers switching to wireless and Internet phone services.

Frontier Communications Corp. announced in May it would buy part of Verizon Communications Inc.'s wireline business for $5.3 billion in stock.

Combined, CenturyLink has about 7.5 million telephone lines in 33 states, more than 2.1 million broadband customers and more than 440,000 video subscribers. Based on the separate companies' most recent results, CenturyLink said it would have had $8 billion in revenue last fiscal year.

------ Court fees rise as Kansas struggles with budget

TOPEKA, Kan. (AP) -- Getting married, filing a lawsuit and going to court for a traffic ticket in Kansas has become more expensive, another sign of budget problems that also could mean deeper cuts for schools and social services.

A $10 increase in most fees imposed by the state's court system took effect Wednesday, the result of efforts by the Kansas Supreme Court to handle a budget shortfall. It will stay in effect through June 2010.

The state postponed a second round of aid payments to public school districts from June into July to help ease problems caused by lower-than-anticipated tax collections. It also delayed tax refunds from June to July, in continuing a practice it had started earlier.

The state began its 2010 fiscal year Wednesday, a day before Gov. Mark Parkinson was to announce a detailed plan to deal with a 2.3 percent shortfall in tax collections, leaving the state with $126 million less in revenues than expected.

The 2010 budget already has less spending financed with state tax dollars.

The governor has said another round of cuts is coming, although his staff declined to discussion specifics ahead of his Thursday news conference. Budget Director Duane Goossen said the administration was still crunching numbers.

------ Former Junction City commissioner indicted

TOPEKA, Kan. (AP) -- A federal grand jury on Wednesday indicted a former Junction City commissioner on 11 counts, including bank fraud and conspiracy for allegedly taking $19,000 in bribes.

The charges against Michael R. "Mick" Wunder, 52, come a day after a developer pleaded guilty to charges that he gave money to a Junction City commissioner to influence the city's decision to award development contracts.

The indictment against Wunder was issued under seal by a federal grand jury in June and unsealed Wednesday. Wunder was defeated in a re-election bid in April.

Jim Cross, a spokesman for the U.S. Attorney's office, said the case was continuing and that a date hasn't been set for Wunder to make his initial court appearance.

The developer, David Ray Freeman, signed an agreement to cooperate with prosecutors in the ongoing investigation. He is scheduled to be sentenced Sept. 29 and faces up to 30 years in prison and a fine of as much as $1 million.

Efforts to reach Wunder, a city commissioner for more than a decade, were unsuccessful. His number is unlisted in Junction City.

------ Water referee says Neb. owes Kan. $10,000

LINCOLN, Neb. (AP) -- A high-stakes water fight between Kansas and Nebraska over use of the Republican River appears headed to court after an arbitrator decided Kansas is owed a tiny fraction of the $9 million it demanded from its northern neighbor.

In a nonbinding decision, Colorado-based arbitrator Karl Dreher ruled that Nebraska only owes Kansas $10,000 for Nebraska's alleged overuse of the water in 2005 and 2006.

Dreher wrote that the damages incurred by Kansas may range as high as several million dollars, but Kansas didn't provide sufficient evidence to back its claim that Nebraska inflicted heavy losses on Kansas by breaking a 65-year-old compact that guides the use of the heavily irrigated river basin. The compact also includes Colorado.

Kansas initially sought $72 million from Nebraska, but lowered that amount after Dreher ruled the state could only seek damages for what it had suffered, not payment for what Nebraska had gained.

"We disagree with his decision we have not provided enough justification," said David Barfield, Kansas' chief water official. Barfield hinted that Kansas would pursue the matter in court, although he declined to say so directly.

"Kansas has been very diligent pursuing this matter for a couple of decades, so I think you can expect us to continue...until it's resolved," Barfield said.

------ Residents of Pittsburg save fireworks show

PITTSBURG, Kan. (AP) -- While some cities around the country are canceling or reducing their Fourth of July fireworks displays, the show will go on in Pittsburg.

After the city eliminated $17,000 it usually donated for the show, citizens began a campaign to raise the nearly $30,000 needed to put on the show. A $15,000 donation from Bell Credit Union put the campaign over the top.

The fireworks will go on at 10 p.m. Saturday at Lincoln Park.

Pittsburg resident Brandon Belew, who helped organize the fund raising, said $20,000 of the money will go to this year's show, with the rest held over for next year.