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Luminant Sued by Sierra Club Over Texas Power Plant

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Sept. 2 (Bloomberg) -- Energy Future Holdings Corp. and its Luminant Generation unit were sued by the Sierra Club over pollution emitted by the Martin Lake coal-fired power plant in Texas.

The plant near Longview is among the dirtiest in the U.S., the environmental group said in its complaint filed today in federal court in Texarkana, Texas. The San Francisco-based group asked a judge to find the plant’s operators in violation of the U.S. Clean Air Act.

“It is the worst power plant for mercury pollution among all U.S. coal plants, emitting 1,764 pounds in 2008,” the Sierra Club said in a statement.

Energy Future Holdings, based in Dallas, and Luminant, are the state’s largest power providers, according to the complaint.

“We are disappointed that Sierra Club has decided to use litigation instead of continuing a dialogue with us that we initiated after receiving Sierra Club’s expression of alleged concerns,” Luminant said in a statement on its website. It called the complaint “without merit.”

Formerly known as TXU Corp., Energy Future was sold in 2007 to a group led by Kohlberg Kravis Roberts & Co. and TPG Inc.

The case is Sierra Club v. Energy Future Holdings Corp., 10-cv-00156, U.S. District Court, Eastern District of Texas (Texarkana).

To contact the reporter on this story: Andrew M. Harris in Chicago at aharris16@bloomberg.net

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.

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