Puget Sound Energy may pull plug early on aging, polluting Montana coal plants



less The Colstrip coal-fired power plants in southeast Montana, dating from the mid-1970's, are America's 15th largest emitter of greenhouse gases into the atmosphere. Two of the four units are slated for shutdown. The future lifespan of the other two is uncertain. The Colstrip coal-fired power plants in southeast Montana, dating from the mid-1970's, are America's 15th largest emitter of greenhouse gases into the atmosphere. Two of the four units are slated for ... more Photo: James Woodcock, AP Photo: James Woodcock, AP Image 1 of / 5 Caption Close Puget Sound Energy may pull plug early on aging, polluting Montana coal plants 1 / 5 Back to Gallery

Puget Sound Energy is giving out signs it may accelerate the shutdown of two 40-year-old, polluting, coal-fired Montana power plants as the Bellevue-based utility moves to replace coal with natural gas.

The company filed a rate case Tuesday with the Washington Utilities Commission, saying that its Colstrip 1 and 2 plants in Montana will be offline by the announced date of 2022 but could shut down as soon as 2018 if its co-owner, Riverstone Holdings, agrees.

Environmental groups have long sought shutdown of the two plants. Together with two other units, Colstrip 3 and 4, the coal plants are America's 15th largest emitter of greenhouse gases into the atmosphere.

The rate case shortens by 10 years, from 2045 to 2035, the debt schedule for Colstrip 3 and 4, a sign their operating life is coming to a close.

The Colstrip plants, located about 100 miles east of Billings, are a major employer in southeast Montana. Colstrip 1 and 2 began supplying energy to Puget Sound Energy customers in the mid-1970s. PSE is the electricity supplier to 1.1 million people in Western Washington.

PSE also has its eyes on a bill, pending in the Montana Legislature, which would double a state tax on electricity produced by power plants that goes onto transmission lines. The money would help Colstrip recover from the loss of its major industry.

"The impact of some of those provisions becoming law may ultimately influence how cost-effective it is to continue to run the units," Ronald Roberts, director of thermal resources for PSE, said in the rate filing.

The Washington environmental community, which negotiated the 2022 shutdown date for Colstrip 1 and 2, is happy to see the transition away from coal -- but not so happy about natural gas taking its place.

"The writing is on the wall for coal power in the Pacific Northwest," said Doug Howell of the Sierra Club. "Given current trends, it's absurd to suggest that Colstrip 3 and 4 will hang on for 18 more years. By financing debt until 2035, PSE missed an opportunity to do the right thing -- protect future ratepayers from having to pay for a shuttered coal plant ..."

The energy economist Daniel Yergin once described natural gas as "a prince of fuels" because of its low pollution.

Despite Donald Trump's oratory about reviving coal, economics are working against it. Abundant natural gas, much of it courtesy of fracking, has made it economically advantageous to shift from coal to gas.

As well, the coal industry has been rebuffed in efforts to locate a major coal export terminal in the Pacific Northwest.

Resistance by Native Americans torpedoed the big Gateway Pacific project north of Bellingham. The Department of Natural Resources said early this month that it will not allow use of state-owned aquatic lands for the proposed Millennium Bulk Terminals export facility at Longview on the Columbia River.

Environmentalists are, however, increasingly worried about methane leaks along the gas supply chain, from wellhead to power plants.

What's shaping up is a major what-comes-now battle, due to be fought before utility regulators in Washington and Oregon.

Utilities are looking to abundant natural gas. Green groups want to harness the potential of wind energy. Wind is, as yet, largely undeveloped over the Rocky Mountain front range of Montana, just east of the Continental Divide.