PGE submitted its most recent integrated resource plan (IRP) to the OPUC on November 5, 2009. In that plan, the utility recommended installation of emissions control retrofits on the Boardman Plant, at an estimated cost of $520m to $560m. These controls would allow continued operation of the plant in compliance with new rules from the state Environmental Quality Commission (EQC).
Jim Piro, president and CEO of PGE, said: ”Our preliminary analysis shows that an alternative plan may be the best option for our customers, and we intend to pursue that. We need to complete our analysis and determine whether we have enough support to move forward, but we feel it’s important to let people know that this is our preferred path.
”Right now state regulations give us very few options – either shut the plant prematurely at a tremendous cost to customers or install very expensive new controls despite uncertainty about future carbon regulation and technological developments.We think an alternative plan could reduce cost and risk for our customers while giving us time to develop replacement resources or convert to a different fuel, but we’ll need changes in state rules and help from our stakeholders to accomplish that.”
The company chose not to include a proposal in its IRP to cease Boardman operations in 2020 because such a plan will not be actionable under the EQC rules; however, further discussion with environmental regulators and other stakeholders suggests that there may be support for a rule change.
Mr.Piro said that 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.
PGE intends to work with the OPUC to establish a new schedule for review of resource planning decisions regarding the Boardman Plant.
