UTC staff suggest regulators deny PSE request to sell stake in coal-fired power plant
Washington Utilities and Transportation Commission staff are recommending that Puget Sound Energy not be allowed to sell part of its stake in a coal-fired power plant in Montana.
They filed testimony Friday recommending that the Commission deny PSE’s February request to sell its 25-percent interest in Unit 4 of the Colstrip plant to Northwestern Energy and Talen Montana, LLC. Staff also recommended PSE not be allowed to sell part of its stake in in the Colstrip Transmission System to Northwestern Energy.
“For the sale of Unit 4, staff testified that it is not certain that the sale of Unit 4 would result in net benefits to customers as PSE proposes, but may in fact end up costing customers due to uncertainty regarding the price of replacement power,” a UTC press release said Monday.
“Additionally, based on the information provided by the company, staff was unable to confirm that this sale would be the lowest reasonable cost option for PSE to meet the state’s Clean Energy Transformation Act (CETA) decarbonization goals.”
And selling the Colstrop Transmission System property “at a depreciated value” could mean “harming customers by trading away benefits that customers would have received from this asset in the future,” the release said.
Staff also said the system might give PSE access to renewable resources in Montana that could help with its clean energy plan.
“The Clean Energy Transformation Act requires electric utilities to eliminate coal-fired electricity by 2025, transition the state’s electricity supply to 100% carbon-neutral by 2030, and 100% carbon-free by 2045,” the release said.
Virtual UTC hearings to allow public comments about the proposed sale have been scheduled for 1:30 p.m. and 6 p.m. Thursday. There are options to join online via Microsoft Teams at utc.wa.gov or by phone at 253-372-2181.
The code for those calling into the 1:30 p.m. meeting is 387 414 077#. For 6 p.m., it’s 508 314 784#.
Those who want to speak at the hearing can sign up by calling 888-333-WUTC (9882) or emailing consumer@utc.wa.gov.
Those who want to comment but can’t make the meetings can do so online at utc.wa.gov, by calling 888-333-9882, or by emailing comments@utc.wa.gov.
PSE serves more than 1.1 million electric customers in the state, including in Pierce, Thurston and Whatcom counties.
This story was originally published October 5, 2020 at 1:51 PM with the headline "UTC staff suggest regulators deny PSE request to sell stake in coal-fired power plant."
