Disputes

Various lawsuits and administrative actions involving the Potomac River Generating Station (PRGS) have occurred during the past year. The City of Alexandria has brought many of these actions, incurring more than $2 million in legal fees.

Issue	Outcome
"Air Board" Lawsuit: Mirant Potomac River filed suit against the Virginia State Air Pollution Control Board (Air Board) for unlawfully directing the Virginia Department of Environmental Quality (DEQ) to issue a temporary State Operating Permit to Mirant for the operations of its Potomac River Generating Station. For more information, read Mirant's news release»	The lawsuit was filed on May 31, 2007.
Zoning Lawsuit: The City Council revoked two special use permits and passed a zoning amendment that only affected our station. As a result, the Potomac River Generating Station brought a lawsuit to reverse their action.	On appeal, a federal court judge upheld that the City Council's actions were arbitrary, capricious and illegal. The court held that Mirant has a "vested right" to operate the PRGS.
“Nuisance” Lawsuit: The City Council filed a lawsuit alleging that the emissions, noise, light, and traffic impacts of the Potomac River Generating Station were a public and private “nuisance.” The City Council is trying to relitigate many of the same issues it lost in the zoning case.	The City of Alexandria voluntarily dismissed its lawsuit against Mirant in December 2006.
Raising Height of Stacks: We requested permission from the Federal Aviation Authority (FAA) to raise the height of our stacks to a more normal level (ours are among the shortest for a coal-fired facility in the United States) in order to disperse and thereby reduce the concentration of emissions.	The FAA has approved, even on appeal from the City, Mirant's application to raise the height of its stacks by up to 50 feet.
NOx Emissions: The plant and all relevant federal and state environmental agencies agreed in a Consent Decree two years ago to various measures to reduce NOx emissions by 29,000 tons by 2010.	The City of Alexandria appealed the Consent Decree. A federal court upheld the NOx Consent Decree, making it official as of April 20, 2007.