Dive Brief:
- A bill that allows Puget Sound Energy to set aside funds to pay for the future decommissioning of two Colstrip coal units in neighboring Montana will now head to Gov. Jay Inslee (D)'s desk for his signature.
- The bill passed the state's Senate in February, and according to The News Tribune, the House voted 92-5 to advance the measure last week.
- While the bill was initially crafted to call for shuttering Colstrip, it was subsequently amended to simply allow Puget Sound to collect funds to pay for that process sometime in the future. Lawmakers supporting the bill say the plant will likely continue operating for many years, but paying for its closure can begin now.
Dive Insight:
The Colstrip coal generation facility has been at the center of ongoing controversy between Montana and Washington lawmakers as Washington state aims to phase out their coal generation.
Six companies own the Colstrip generating facility, and The News Tribune points out that none of them are located in Montana. The aging coal facility may still produce power for a generation, some lawmakers suggest, but they say utilities should be planning now for the eventual shutdown.
"This money should be protected from being swept by future utility commissions," Rep. Jeff Morris (D) said during discussions over the bill. Morris sponsored the House version.
Senate Bill 6248 creates a mechanism to pay for the shutdown of two plants, but does not require shutdown or impose a schedule. The measure would also prevent the financing mechanism from being used if a shutdown takes place before 2023, though there are exceptions for involuntarily closures.
Puget Sound Energy owns 50% of the older units 1 and 2. The utility estimated decommissioning the units would cost between $130 million to $200 million.
Despite the easy passage, there are concerns about the bill.
Washington Sen. Tim Sheldon (D) predicted “this bill will result in litigation," while calling for more time to study the economic impact of the plant's possible closure on Colstrip, Montana, the town that houses the plant. Rep. Bruce Chandler (R) told the News Tribune he worries the utility may have underestimated the cost. "It could end up being far more expensive and take quite a bit longer than what the Legislature is expecting," he told the newspaper.
Montana lawmakers attempted to protect the plant last year by imposing a fine on companies that close coal plant, but it failed to pass once Washington legislature didn't pass a bill that called for a study to weigh the consequences of shutting the plant down.