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 submitted its most recent Integrated Resource Plan (IRP) to the Oregon Public Utility Commission 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 Oregon Department of Environmental Quality.

In January, 2010, PGE announced that after further analysis and discussions with stakeholders and regulators it intended to pursue an alternative operating plan for Boardman. Under this plan, PGE would install certain additional emissions controls and make operational changes to further reduce emissions, but then cease operations in 2020. See our Issues in Perspective (PDF) for an in-depth look at this proposal.

The company did not include a proposal in its IRP to cease Boardman operations in 2020 because such a plan would not be actionable under the current DEQ rules; however, further analysis has shown that a 2020 alternative would provide a better balance of cost and risk for PGE customers, and discussion with environmental regulators and other stakeholders suggests that there may be support for a rule change that would make it possible to implement the plan.

So, on April 2, PGE submitted a proposal to the DEQ asking for rule revisions that would allow us to meet environmental standards related to haze-causing emissions by closing the Boardman plant in 2020. See news release and proposal to DEQ (228-page PDF). As part of the proposal, PGE would switch to a lower sulfur coal to reduce allowed sulfur dioxide emissions 50 percent by 2014 and install new burners to reduce emissions of nitrogen oxides by 50 percent by 2011. Under separate DEQ rules, PGE has already agreed to install controls in 2011 to reduce mercury emissions from the plant by 90 percent — one of the most stringent standards in the nation.

We followed up on April 9 by filing an addendum to our Integrated Resource Plan requesting OPUC acknowledgement of a 2020 closure date contingent on DEQ approval of revised rules.

If agreement on an alternative plan can’t be reached or other regulatory hurdles make it impossible to implement the plan, PGE will continue to seek approval for installation of all emissions controls presently required and continued operation of the plant — the best option available to customers without changes to current rules.

• 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?
• What about using a different fuel to power the existing Boardman Plant?
• If Boardman closes, what will you replace it with?
• 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 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. What about using a different fuel to power the existing Boardman Plant?

If the 2020 plan is approved, we’ll conduct a complete analysis of potential replacement resources as part of a future Integrated Resource Plan. Under IRP guidelines from the OPUC we’re required to investigate all available generating technologies and market options and evaluate the best mix of resources to serve our customers’ needs with the best possible balance of cost and risk.

Q. If Boardman closes, what will you replace it with?

If Boardman closes we’ll investigate this possibility as part of our resource planning process. It would be possible to “re-power” Boardman using natural gas, but that might be less efficient than simply replacing the current facility with a new natural gas-fired plant. Another possibility we’re actively investigating is whether Boardman could be powered using biomass. Such a conversion would require overcoming major engineering and economic hurdles, however, and will require much more research and analysis before we can determine if it is feasible.

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.