Oregon power plant cuts deal to close state's only coal-powered plant

In a region known for its hydroelectric power, Oregon regulators may have set an important precedent. Portland General Electric is shuttering a coal-fired power plant in exchange for a smaller investment in pollution controls. PGE is planning to close the state's only coal-fired plant no later than Dec. 31, 2020, and state environmental regulators endorse the plan. The Boardman coal plant, built in 1977, "would be the youngest coal plant closed in the United States for environmental reasons, putting it on the national radar," Scott Learn and Ted Sickinger of The Oregonian report.

The proposal divided environmental groups who differed on short and long-term focus. "Supporters, including the Oregon Environmental Council and the Citizens' Utility Board of Oregon, say DEQ's recommendation would sharply reduce the state's pollution and global warming impact after 2020," Learn and Sickinger write. "Environmental critics say the recommendation low balls pollution controls and unnecessarily extends the life of Oregon's dirtiest plant." The U.S. Chamber of Commerce also spoke out against the plan, saying it "sets a precedent of regulating the nation's low-cost coal plants out of business," the reporters write.

PGE had considered spending about $500 million on new pollution controls and operating the plant through at least 2040, which would have led to a significant rate increase for customers. PGE estimates the 2020 plan would bump up electricity rates by an average of 2.4 percent while the plant operates. "An ongoing lawsuit from the Sierra Club, Friends of the Columbia Gorge and three other environmental groups alleges that PGE should have installed a full suite of pollution controls three decades ago, including equipment to knock down pollution by at least 80 percent," the reporters write. (Read more)