About the Boardman Plant
The Boardman Power Plant is a 585-megawatt coal-fired electricity generating plant in northeastern Oregon. It is one of PGE’s most cost-effective sources of power, producing electricity at a variable cost of about one-third to one-half the wholesale market price. Boardman provides about 15 percent of the power PGE delivers to its customers, making it a key resource in meeting Oregonians’ current and future energy needs.

Air emissions proposal
PGE has decided to pursue an alternative operating plan for the Boardman Power Plant. Under this plan, with additional emissions controls the plant will either switch from the use of pulverized coal as a fuel source or cease operations in 2020. See our Issues in Perspective (PDF) for an in-depth look at this proposal.

PGE will complete its analysis and reach out to regulators and stakeholders to determine whether to move forward on this option or seek approval for extensive emission controls and keep the plant operating until 2040.

In announcing its intention to work with stakeholders to pursue an alternate plan, PGE sent a letter to the Oregon Public Utility Commission, asking them to delay consideration of our Integrated Resource Plan as we work to develop this plan. Read the letter. (PDF)

“Our preliminary analysis shows that an alternative plan may be the best option for our customers and we intend to pursue that,” said Jim Piro, President and CEO. “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.”

PGE submitted its most recent Integrated Resource Plan (IRP) to the OPUC on Nov. 5, 2009. In that plan, the utility recommended installation of extensive emissions control retrofits on the Boardman Plant, at an estimated cost of $520 million to $560 million. These controls would allow continued operation of the plant in compliance with new rules from the state Environmental Quality Commission.

The company chose not to include a proposal in its IRP to cease Boardman operations in 2020 because such a plan would 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.

“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,” Piro said. “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.”

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 — the best option available to customers under current state rules.

PGE intends to work with the OPUC to establish a new schedule for review of resource planning decisions regarding the Boardman Plant.

• What sources do PGE customers get their electricity from?
• Why does a diverse power supply matter?
• What is PGE doing to maintain a diverse power supply?
• Who owns the Boardman Power Plant?

Q. What sources do PGE customers get their electricity from?

PGE has one of the most diverse power mixes in the country, which helps us provide reliable, reasonably priced power for our customers.

PGE 2010 resource mix*

*After economic dispatch. Based on IRP data tracking annual energy needs on an expected basis.

*Wind includes 50 megawatts of low-impact hydro, and 9 megawatts of hydro plant upgrades that will count as renewables under Oregon’s RES.

We project that our customers’ demand for electricity will increase by nearly 50 percent over the next 20 years. To meet that demand, we will need every tool in our region’s energy tool box.

2010-2030 Load/resource projections

*Renewables reflect the amount necessary to meet the Oregon Renewable Portfolio Standard in 2015

As one of our most dependable and cost-effective generating resources, Boardman is a critical part of the current mix. If PGE’s alternative proposal can’t be reached, PGE will continue to seek approval for installation of all required emissions controls and continued operation of the plant.

Q. Why does a diverse power supply matter?

A diverse power supply avoids putting all our eggs in one basket. PGE generates electricity using hydroelectric dams, wind farms, solar projects and thermal plants that burn either natural gas or coal. We also buy power on the wholesale energy market. Beyond that, we work with customers to promote energy efficiency.

We need a diverse mix in part because each source of energy has advantages and disadvantages. Hydroelectric power is inexpensive and creates no emissions, but there’s little or no potential for new hydro development. Hydro power also isn’t a guaranteed source because it depends on stream flows that may not exist during regional droughts.

While wind power doesn’t generate air pollution and the “fuel” is free, it is even more variable than hydro power. The wind doesn’t always blow, and unlike the water behind our dams, it cannot be stored. The times when it isn’t blowing are often the times when demand for electricity is highest — when it’s very hot or very cold.

PGE is actively developing solar power projects, but solar power is also variable depending on the time of year and amount of sunshine. Other sources of renewable energy (including biomass and wave energy, which PGE helps support through research at Oregon State University), show promise but are not ready for commercial-scale power generation.

Coal and natural gas can dependably produce electricity when customers want it, hour after hour, day after day, year after year, but they have environmental impacts. We’re working to reduce our reliance on these fuels but for now, thermal generation resources are needed as a bridge to the future. Without them, our customers would be at greater risk of volatile prices and supply problems that could hurt household budgets and the region’s economy.

Q. What is PGE doing to maintain a diverse power supply?

In 2007, we completed the first phase of our Biglow Canyon Wind Farm and the second phase was brought online in 2009. Construction is now underway on phase three, with completion expected by the end of 2010. When all three phases are developed, it will be one of the region’s largest wind projects.

We brought our new natural gas-fired plant at Port Westward online in 2007. We’re also making significant investments to improve fish passage at our hydroelectric plants, including our Deschutes River project, so we can continue operating these cost-effective resources.

Q. Who owns the Boardman Power Plant?

PGE owns 65 percent of the plant. The other plant owners are BA Leasing BSC LLC, 15 percent; Idaho Power Company, 10 percent; and Power Resources Cooperative, 10 percent.