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PacifiCorp foresees big savings from coal plant retirements

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PacifiCorp foresees big savings from coal plant retirements

PacifiCorp said it will submit an integrated resource plan on Oct. 18 that could propose savings of up to $599 million over 20 years if coal-fired plants are retired earlier than previously planned.

At a public briefing for regulators and stakeholders Sept. 5 and 6, the Berkshire Hathaway Energy subsidiary presented a number of scenarios for use in its final 2019 IRP. The meeting was held to provide an update on development of the preferred generation portfolio for the annual resource plan.

One scenario calls for accelerating the the retirement of seven coal units, including Cholla in 2020, Jim Bridger units 3 and 4 and Naughton units 1 and 2 in 2025, Jim Bridger unit 1 in 2028, and Jim Bridger unit 2 in 2032. PacifiCorp's ownership share in those units totals 2,159 MW.

While PacifiCorp still has not committed itself to any preferred option, company spokesman Bob Gravely said the early-retirement scenario is among the leading contenders. "We continue to expect the company's long-term resource planning will reflect a cost-conscious transition from coal to renewables and other resources," he continued.

A preferred scenario will be released on Oct. 3, ahead of the IRP.

Savings depend on methods of comparison

The cost savings figures are in comparison to the base-case scenario the Oregon Public Utility Commission required PacifiCorp to use in its evaluation of resource options, Gravely said. That scenario has a less aggressive early coal retirement schedule than the one contained in the company's 2017 IRP, so the savings in the new IRP might appear greater than if they were compared to the 2017 base case. Specifically, the PUC's case is based on the depreciable lives of the coal plants — essentially, when they are paid off while the 2017 IRP assumed earlier closure dates than the depreciable lives for some units.

Another scenario shows that PacifiCorp could most drastically cut its carbon emissions by retiring all 25 of its remaining coal units by 2030, the Sierra Club noted. This is not the most cost-effective approach, according to PacifiCorp's evaluation.

"The more PacifiCorp looks at retiring coal, the more it finds how much money it can save its customers, while also clearing the air of more climate pollution," Sierra Club spokesman Christopher Thomas said.

The addition of new renewable energy resources, primarily wind and solar, would require the construction of new transmission lines. All scenarios include completion of the Gateway South transmission line in 2024, along with 1,920 MW of new wind resources in eastern Wyoming.

Through 2027, solar resource additions range between 1,440 MW and 3,555 MW; cases with more early coal retirements include more solar, according to PacifiCorp's presentation. Through 2038, additions of new renewable capacity total between 8,411 MW and 10,711 MW, while new battery installations range from 3,099 MW to 4,558 MW.