The North Carolina Utilities Commission handed a setback last week to environmental activists working to halt construction of Duke Energy's new coal-fired power plant at its Cliffside facility in the western part of the state.

The commission turned down a request filed in May by the environmental group NC WARN to hold a hearing into revoking Duke Energy's permission to construct the 800-megawatt plant, which would release 6 million tons of carbon dioxide as well as toxic pollutants into the atmosphere annually.

While agreeing that it has the authority to reconsider the company's Certificate of Public Convenience and Necessity to build the plant, the panel sided with Duke Energy, which has argued that NC WARN's case -- backed by over two dozen other nonprofit groups -- was flawed.

NC WARN argues that Duke is charging its North Carolina customers to build the $2.4 billion plant in order to extend its sales outside the utility's currently approved territory. "The latest evidence is Duke's contract to sell 1000 megawatts of power, at reduced prices, to five electric cooperatives in South Carolina -- outside Duke's service area," NC WARN said in a statement about the commission's decision.

In August, Santee Cooper -- South Carolina's state-owned electric and water utility -- decided not to pursue construction of a controversial $2.2 billion coal-fired power plant given the cooperatives' deal to buy power from Duke Energy. Santee Cooper currently generates the power distributed by the state's 20 electric cooperatives.

A March 2009 study [pdf] of Duke Energy data by a Duke University economist showed that the need for the new Cliffside plant -- as well as new nuclear plants -- could be eliminated by modest increases in energy efficiency and cogeneration, along with renewable power generation at levels already required by North Carolina law.

Meanwhile, in other Cliffside news, a subpoena was issued last week for company CEO and Chairman Jim Rogers to appear in court to give evidence in the trial of Charlotte attorney Ken Davies, the first of 43 people arrested in April's civil disobedience action against the plant's construction.

Arrested for second-degree trespass, Davies is pleading the necessity defense, arguing that building Cliffside is a greater crime that needed to be brought to a jury's attention.