Portland General Electric (PGE) has submitted a proposal asking the Oregon Department of Environmental Quality (DEQ) for rule revisions to allow the utility to meet new environmental standards by closing the Boardman Power Plant in 2020, at least 20 years ahead of schedule.
This will allow PGE also to achieve emissions reductions with new controls and operational changes during the remaining years that the plant is in service, the company said.
PGE’s proposal calls for changes to the state’s Regional Haze Plan. Under the proposal, PGE will cut haze-causing emissions of sulfur dioxide and nitrogen oxides from the Boardman plant by installing new burners by July 1, 2011. The new burners are expected to reduce nitrogen oxides emitted by the plant by nearly 50%.
The company proposes to use coal with a lower sulfur content to fire the plant’s boiler. This will be completed in two stages as PGE’s current coal supply contracts expire.
An initial 20% drop in permitted sulfur dioxide emissions is expected to take effect in 2011. The company believes that a further reduction in 2014 will bring allowed sulfur dioxide emissions down by a total of 50% from current permit levels.
Finally, closing the plant in 2020, ending all coal-related emissions at least 20 years ahead of schedule will reduce Oregon’s contribution to global warming, the company said.
Under a separate rulemaking procedure with DEQ, PGE already has agreed to install controls that are expected to eliminate 90% of the plant’s mercury emissions by 2012. Current construction schedules will allow PGE to meet this deadline in 2011.
The DEQ now will review PGE’s proposal, and is expected to submit a recommendation to the state’s Environmental Quality Commission for action later this year.
PGE expects to also file an addendum to its most recent integrated resource plan with the Oregon Public Utility Commission later this month, requesting commission acknowledgment of a 2020 closure date for Boardman contingent on DEQ approval of the new haze rule.
The original resource plan, filed in November 2009, recommended installation of emissions control retrofits on the Boardman Plant, at an estimated cost of $520m to $560 m. These controls would allow continued operation of the plant in compliance with existing DEQ rules, through 2040.
PGE declared 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. Should the proposal be rejected PGE will stick to the original plan to install all controls and operate until 2040.
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.
Jim Piro, president and CEO of PGE, said: “It’s a major emissions-reduction proposal that will be good for the environment while saving our customers as much as $600m over the next decade compared to earlier shutdown options available under current rules.”