Two units in Lincoln County and two in Sweetwater County targeted.
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An updated analysis
conducted by Rocky Mountain Power suggests
it would lower costs for customers if it
sped up the retirement of four power-generating
units in Southwest Wyoming, including
two units at the Jim Bridger Power Plant.
The other two units are at the Naughton
Plant in Lincoln County.
However, while the company’s Integrated
Resource Plan recommends early closure for
the four units, RMP doesn’t have a plan in
place.
“We don’t know the plan of what we’re
going to do,” RMP President and CEO Gary
Hoogeveen told a group of officials representing
Rock Springs, Sweetwater County and the
state Wednesday.
The company will produce a plan to handle
the possible closures Aug. 1.
The IRP looked at RMP’s 22 coal-fired
plants to determine if savings could be found
if units could be closed as early as 2022. It also
analyzed the difference between specific coal
units and newer resources and energy conservation.
The plan is updated every two years,
studying the best resource mix to provide customers
with reliable access to electricity for a
20-year period. According to Hoogeveen, customers
would save approximately $248 million
if the company sped up retirement plans
for the four units. RMP plans to study other
factors related to the retirements, including
how employees and the communities would
be impacted.
Hoogeveen said the retirements would
likely be staggered, with the first occurring in
2022, but said other unit closures could take
place between 2022 and 2028 potentially.
According to Senior Vice-President of
Thermal Generation and Mining, Dana
Ralston, the company is not sure how many
employees the closures would impact. If the
unit retirements were staggered out, he believes
RMP could avoid layoffs by adjusting
staffing levels at Jim Bridger and eliminating
positions through attrition. He admits that goal
would be much more difficult if the units were
retired at the same time. However, with only
two units planned for operation into the 2030s,
Ralson also said it would be difficult to maintain
both the mine at Bridger and Black Butte.
The Jim Bridger surface mine is tenatively
scheduled to close operations in 2028.
For the Jim Bridger Power Plant, the plant
is expected to reach the end of its lifespan in
2037, while the Naughton Plant’s lifespan anticipated
to end in 2027.
While many would blame politics as the
reason RMP is looking to retire the units early,
Hoogeveen said the decision comes purely at
an economic level. He said the public service
commissions RMP answers to mandates the
company provide electricity at the lowest
cost, while being reliable to customers. More
focus in wind and solar generation, including
RMP’s investment in wind turbines, have
made renewable sources of power cheaper to
produce.
Hoogeveen also claimed the savings the
company receives through renewable energy
tax credits or through cutting units in Wyoming
don’t go to RMP’s shareholders or its
parent company, Berkshire Hathaway.
The cost of retrofitting coal plants with the
latest emissions technology have made coal
power generation more expensive. The two
units reviewed in the IRP are the older units
at Jim Bridger. The cost to retrofit the units
with current emissions technology would not
be economical, according to company officials.
The cost to convert the units to using
natural gas would also be costly, especially
as infrastructure tying the plant to natural gas
lines would be needed. However, with units
three and four at Jim Bridger being what Hoogeveen
described as the most technologically
advanced in the nation in regards to emissions
controls, he said he sees a long life for the Jim
Bridger Power Plant.
The company plans to host monthly meetings
updating residents on their progress until
Aug. 1, when it releases its unit retirement
plan. Rick Link, Pacificorp vice-president of
resource planning and aquisitions said residents
can submit public comments on its IRP
through the RMP website. While he admits
this isn’t the greatest news for the community,
Hoogeveen said the recommendation does not
mean everything is finalized in regards to the
four units.
“We’re going to continue to talk about it,”
Hoogeveen said, “This is not done.”