Goal is to Switch Fuels or Close Plant in 2020
PORTLAND, Ore., Jan 14, 2010 (BUSINESS WIRE) -- Portland General Electric Company (NYSE:POR) today informed the Oregon
Public Utility Commission that it intends to pursue an alternative
operating plan for the utility's Boardman Power Plant, under which the
plant will cease operations in 2020 or discontinue the use of coal as a
"Our preliminary analysis shows that an alternative plan may be the best
option for our customers, and we intend to pursue that," said Jim Piro,
President and CEO. "We need to complete our analysis and determine
whether we have enough support to move forward, but we feel it's
important to let people know that this is our preferred path."
PGE submitted its most recent integrated resource plan (IRP) to the OPUC
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 state Environmental Quality Commission (EQC).
The company chose not to include a proposal in its IRP to cease Boardman
operations in 2020 because such a plan would not be actionable under the
EQC rules; however, further discussion with environmental regulators and
other stakeholders suggests that there may be support for a rule change.
"Right now state regulations give us very few options - either shut the
plant prematurely at a tremendous cost to customers or install very
expensive new controls despite uncertainty about future carbon
regulation and technological developments," Piro said. "We think an
alternative plan could reduce cost and risk for our customers while
giving us time to develop replacement resources or convert to a
different fuel, but we'll need changes in state rules and help from our
stakeholders to accomplish that."
Piro noted that if agreement on an alternative plan can't be reached,
PGE will continue to seek approval for installation of all required
emissions controls and continued operation of the plant - the best
option available to customers under current state rules.
PGE intends to work with the OPUC to establish a new schedule for review
of resource planning decisions regarding the Boardman Plant.
About Portland General Electric Company
Portland General Electric Company is a vertically integrated electric
utility that serves approximately 818,000 residential, commercial and
industrial customers in the Portland/Salem metropolitan area of Oregon.
The Company's headquarters are located at 121 SW Salmon Street,
Portland, Oregon 97204. Visit our website at www.PortlandGeneral.com.
Safe Harbor Statement
Statements in this news release that relate to future plans, objectives,
expectations, performance, events and the like may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements include statements
regarding PGE's development of alternative operating plans for the
Boardman Power Plant, statements regarding PGE's future recommendations
concerning the operating plan for the Boardman Power Plant, as well as
other statements containing words such as "anticipates," "believes,"
"intends," "estimates," "will," "promises," "expects," "should,"
"conditioned upon," and similar expressions. Investors are cautioned
that any such forward-looking statements are subject to risks and
uncertainties, including final regulatory review and acknowledgement of
the Company's integrated resource plan. As a result, actual results may
differ materially from those projected in the forward-looking
statements. All forward-looking statements included in this news release
are based on information available to the Company on the date hereof and
such statements speak only as of the date hereof. The Company assumes no
obligation to update any such forward-looking statement. Prospective
investors should also review the risks and uncertainties listed in the
Company's most recent Annual Report on Form 10-K and the Company's
reports on Forms 8-K and 10-Q filed with the United States Securities
and Exchange Commission, including Management's Discussion and Analysis
of Financial Condition and Results of Operations and the risks described
therein from time to time.
Source: Portland General Electric Company
SOURCE: Portland General Electric Company
Steve Corson, 503-464-8444
Copyright Business Wire 2010