Boardman coal plant owners work out shutdown issues

Due to the retirement by the end of 2020 of the Boardman plant as a coal-fired facility, Portland General Electric has worked out a new rate schedule related to transmission facilities that support that Oregon plant.

Portland General Electric submitted for filing on Sept. 12 at the Federal Energy Regulatory Commission a revised Rate Schedule No. 79, called the “Amended Agreement for Construction Ownership and Operation of the Number One Boardman Station on Carty Reservoir.”

The base agreement in Rate Schedule No. 79 is an agreement for joint ownership of the Boardman coal plant among PGE, Idaho Power and Power Resources Cooperative, a non-jurisdictional electric power cooperative.

In 2011, the U.S. District Court for the District of Oregon entered a consent decree regarding the Boardman plant, and the Oregon Department of Environmental Quality (DEQ) approved revisions to its pollution control rules applicable to the plant. Both the consent decree and the DEQ’s rule revisions require that the Boardman plant cease coal-fired operations by Dec. 31, 2020.

“In light of the required closure of the Boardman plant, and the parties’ desire for the Boardman-Slatt Line Facilities and the Dalreed Line Facilities to continue to be used and useful after coal-fired operations cease, the parties negotiated and executed the Seventh Amendment to the Boardman Agreement,” the filing noted. The Seventh Amendment has been mutually agreed to and was executed by the parties on April 14, 2014.

“The Seventh Amendment separately defines and identifies the Boardman-Slatt Line Facilities and Dalreed Line Facilities and excludes those facilities from the definition of Generating Plant under the Boardman Agreement. The Seventh Amendment provides for the parties to jointly own the Boardman-Slatt Line Facilities and Dalreed Line Facilities in accordance with their ownership shares (i.e., .800 for PGE; .100 for Idaho; and .100 for Cooperative). The Seventh Amendment provides for the parties’ use of their undivided ownership shares of the Boardman-Slatt Line Facilities and Dalreed Line Facilities, and obligates the parties to contribute to the operation costs of those Facilities in accordance with their ownership shares.”

The Seventh Amendment also allows PGE to realign a portion of the Boardman-Slatt Line Facilities at its own cost and provides that the parties will have the same rights to use the realigned Boardman-Slatt Line Facilities. Also, the amendment provides for the Boardman-Slatt Line Facilities and the Dalreed Line Facilities to continue operating after closure of the Boardman plant, for the parties to engage in good-faith negotiations for a new agreement governing the parties’ rights and obligations with respect to those facilities after closure of the plant, and for the Seventh Amendment to continue to apply to those facilities until a new agreement is executed and approved.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.