Aug. 31, 2010

  PORTLAND, Ore. — Portland General Electric Company (NYSE: POR) has submitted its third proposal to install emission controls on the Boardman coal plant, advising the Oregon Department of Environmental Quality that the agency’s latest proposals make a 2040 closure the only practical option currently on the table.

“The window of opportunity for an early shutdown is closing,” said Dave Robertson, PGE vice president for public policy.  “PGE wants to close the Boardman coal plant in 2020. Our new 2020 plan meets state and federal environmental standards and strikes the best balance between cost, risk and environmental benefits.”

PGE’s new plan still would close the plant in 2020, but goes even further than its previous 2020 plan in reducing emissions. It would cut mercury emissions 90 percent and emissions of nitrogen oxides 50 percent.  It also would cut sulfur dioxide emissions 50 percent and include testing of new technology – recommended by DEQ in one of its latest options – to further reduce sulfur.  Emission controls proposed in the new plan would cost about $75 million, nearly $35 million more than PGE’s previous 2020 plan, and would require an additional $14.5 million a year in operation and maintenance costs.

PGE developed its new 2020 plan after concluding that proposals released by DEQ in June were unworkable. DEQ’s proposals include a 2020 alternative that would cost customers about $267 million more than PGE’s new 2020 plan. The other two options require even earlier plant closure, which would be more costly, threaten system reliability and don’t allow time to develop replacement resources and consider renewable options that may emerge.

Under current regional haze rules adopted by DEQ in 2009, PGE can operate the Boardman plant indefinitely by installing extensive pollution controls, estimated to cost between $520 million and $560 million.  To recover those costs, PGE would need to operate until 2040 or beyond.  PGE has since concluded it can achieve even greater environmental benefits by closing the plant in 2020 and installing pollution controls that would significantly reduce emissions – all at a lower cost to customers.

Numerous stakeholder groups have expressed strong support for PGE’s 2020 approach, including customer groups, renewable power advocates, chambers of commerce and other business and economic development organizations, labor unions, low-income advocates, and members of the Boardman community. PGE plans to continue working with the DEQ and stakeholders to find a solution that meets environmental requirements, makes sense for customers, and results in a 2020 end to coal-fired generation in the state.  

DEQ will take public comment on its three proposals and on PGE’s latest plan from Sept. 1 through Oct. 1 at www.oregon.gov/deq. PGE’s plan can be viewed at PortlandGeneral.com/Boardman.