Coal Creek: A Power Project With Continuing Controversies Over Costs, Siting, and Potential Health Hazards

The Coal Creek power project is a joint venture by two rural electric power cooperatives financed by Rural Electrification Administration insured and guaranteed loans. Changing economic, environmental, and regulatory factors, public opposition expressed in court suits and acts of vandalism, and certain management decisions have resulted in increases in estimated costs from $537 million in 1973 to over $1.2 billion in 1979. A GAO report examined the large increase in costs; the transmission line siting process in North Dakota and Minnesota; and the potential adverse health, welfare, and environmental effects from extra high voltage, direct-current transmission lines.