nwlaborpress.org | PGE proposes change or closure at Boardman coal plant

February 5, 2010 Volume 111 Number 3

PGE proposes change or closure at Boardman coal plant

Portland General Electric, Oregon’s largest investor-owned electric utility, announced Jan. 14 a proposal to close — or alter — its Boardman, Oregon, coal-burning electricity generating plant in 2020.

PGE owns 65 percent of the 585-megawatt plant, which directly employs 110 workers, including about 80 members of International Brotherhood of Electrical Workers (IBEW) Local 125. The plant is the biggest source of power for PGE customers (24 percent), but is also the state’s largest source of air pollution, including mercury and nitrogen oxide that contributes to haze in the Columbia Gorge National Scenic Area. To comply with clean air regulations, PGE currently has to either close the plant in 2014 or install $520 million to $560 million worth of equipment to scrub the plant’s emissions, in which case it could operate the plant until 2040.

The 2020 closure proposal is a kind of compromise proposal — PGE is asking to be allowed to install less expensive equipment that would reduce emissions less. The proposal will require buy-in from ratepayer groups and the approval of environmental regulators.

The Oregon Public Utility Commission (PUC) would have to approve closing the plant in 2020, because the shorter time frame for amortizing the emissions control investment could lead to increased rates for purchasers of electricity. And the Environmental Quality Commission would have to approve the proposal for less stringent emissions controls.

The Boardman plant has also been targeted by environmental groups as a big emitter of carbon dioxide, which contributes to global warming. PGE spokesperson Steve Corson acknowledged that the company faces a certain amount of financial risk if carbon comes to have price under future greenhouse gas controls.

Corson said PUC could sign off on the 2020 proposal first half of this year, while the EQC, which is the rule-making body for the Department of Environmental Quality (DEQ) would have its say toward the end of the year. If agreement on an alternative plan can’t be reached, PGE will continue to seek approval for installation of all required emissions controls and continued operation of the plant through 2040.

PGE also outlined an alternative to outright closure in 2020: The plant could be adapted to burning a still-in-development coal-like fuel made from wood or plant material. That could help PGE comply with a state law passed in 2007 that requires investor-owned utilities to generate 25 percent of their electricity from new renewable sources by 2025. Known as “renewable portfolio standard,” it is spurring big growth in wind, as well as research and development of wave, geothermal, and biomass sources.

Though any change is years away, Local 125 Political Affairs representative Marcy Putnam said the union is seeking to meet with PGE to discuss impacts. PGE is a major employer in sparsely-populated Morrow County, with not only Boardman but also the Coyote Springs natural gas electricity generating plant.

With 10 years notice, members will have a lots of options, Corson said.

For one, PGE is proposing construction of a new 300 to 500 megawatt natural gas plant at Carty Reservoir, adjacent to the Boardman plant. That is driven by increased demand — and the need for “wind-chaser” generation to compensate for the intermittent nature of wind generation. The plant would be similar to the 400-megawatt plant at Port Westward in Clatskanie.

Also, a new transmission line is being constructed to bring more power down the Gorge into Willamette Valley, from wind and the new natural gas plants in the works.

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