Portland General Electric Company (PGE) has asked the Oregon Public Utility Commission to approve a plan for closure of the Boardman Power Plant in 2020.
PGE originally filed its integrated resource plan with the OPUC in November, 2009 and has now filed an addendum to the plan, reflecting a proposal the utility submitted to the Oregon Department of Environmental Quality recently for early Boardman Plant closure to meet new haze-reduction goals.
The request is part of a strategy to meet PGE customers’ future energy needs that also includes additional energy efficiency, demand-side systems to reduce peak usage, new renewable and natural gas resources, and new transmission lines to bring electricity to the Willamette Valley.
The utility’s original resource plan included a recommendation to install emissions control retrofits on the Boardman Plant, at an estimated cost of $520m to $560m. These controls will allow continued operation of the plant through at least 2040 in compliance with existing DEQ rules.
However PGE revealed its intention in January to pursue an alternative operating plan with a 2020 closure date and began discussions with stakeholders to seek further input and gauge support.
The 2020 plan will still include installation of new burners to reduce emissions of nitrogen oxides, operational changes to reduce emissions of sulfur dioxide, and a sorbent injection system to eliminate most mercury emissions. The total installation cost of new controls under the 2020 plan is estimated at approximately $41m.
Certain other regulatory and legal issues must also be resolved for PGE to move forward with the 2020 plan.
If the 2020 plan is allowed to proceed, PGE will evaluate replacement resources for Boardman, including natural gas, biomass, and other renewable technologies and submit recommendations to the OPUC as part of a future resource plan. On the event of denial, the company will stick to the original plan to install all controls and operate until 2040.
Jim Piro, president and CEO of PGE, said: ”The 2020 plan for the Boardman Plant is the best option for our customers, balancing cost and risk while offering major improvements for the environment.
”We’re working hard to build a collaborative process that will make this option a reality, with input from customers, other stakeholders, and regulators. Filing with the OPUC today is the next step in that process.”