Portland General Electric’s surprise decision last week to shut down its Boardman coal-fired electric generation plant means that Idaho Power will be reducing its coal base load sooner than expected.
The Oregon utility was going to have to invest $500 to $700 million in new pollution controls to keep the plant operating. Since Idaho Power has a 10 percent stake in the plant that meant that Idaho’s customers would have had to pony up from $50 to $70 million for its stake.
Idaho Power now will have to find the 50 megawatts of power somewhere else. But its not as bad as it sounds. Getting rid of Boardman opens up transmission capacity to access more of the federal hydropower and wind power to the west when it is available at a good price.
Idaho Power already has gotten approval to build a natural gas plant in the lower Treasure Valley that will provide power that can offset some of the 50 megawatts. And Idaho Power already has become more aggressive at pushing energy efficiency programs that can reduce the demand and cost of power.
The investment in the Boardman retrofit might have appeared attractive in the short run. But as we are forced to pay the price of carbon, which seems inevitable, that investment would have lost its luster.
PGE plans to decommission the Boardman coal plant by 2020, the Oregonian reports, giving the region and Idaho Power time to make the transition. The downside for Idaho ratepayers is that they will be left with more than $12 million in amortized investment in the plant.
That means Idaho Power will have to write it off over 10 years instead of 30, which will cost ratepayers some money.
The Oregon utility was going to have to invest $500 to $700 million in new pollution controls to keep the plant operating. Since Idaho Power has a 10 percent stake in the plant that meant that Idaho’s customers would have had to pony up from $50 to $70 million for its stake.
Idaho Power now will have to find the 50 megawatts of power somewhere else. But its not as bad as it sounds. Getting rid of Boardman opens up transmission capacity to access more of the federal hydropower and wind power to the west when it is available at a good price.
Idaho Power already has gotten approval to build a natural gas plant in the lower Treasure Valley that will provide power that can offset some of the 50 megawatts. And Idaho Power already has become more aggressive at pushing energy efficiency programs that can reduce the demand and cost of power.
The investment in the Boardman retrofit might have appeared attractive in the short run. But as we are forced to pay the price of carbon, which seems inevitable, that investment would have lost its luster.
PGE plans to decommission the Boardman coal plant by 2020, the Oregonian reports, giving the region and Idaho Power time to make the transition. The downside for Idaho ratepayers is that they will be left with more than $12 million in amortized investment in the plant.
That means Idaho Power will have to write it off over 10 years instead of 30, which will cost ratepayers some money.
