Future Hazy For Centralia Power Plant Emission Problems May Force Sale Or Closure Of Operation

One of the Northwest’s most expensive and dirtiest generating plants may be sold or shut down if the owners balk at a potential $200 million pollution-control upgrade.

Eight utilities own a share of the Centralia Steam Power Plant, which produces 1,300 megawatts of electricity from twin coal-fired units. A open-pit mine sprawls next to the plant in Western Washington.

Sulphur dioxide emissions from the facility would violate air-quality standards that will take effect in 2001. Also, much of the haze that frequently obscures Mt. Rainier is blamed on the fumes.

Last year, the Legislature passed a bill that would give the consortium a $130 million tax break over 30 years if they make the investment necessary to keep the plant and mine open, preserving more than 600 jobs.

But after pushing hard for the legislation, the utilities are weighing other options, said Don Kopczynski, WWP’s resource optimization manager.

As technological advances reduce the cost of retrofitting the plants, he said, deregulation also cuts the cost of power that could be substituted for Centralia’s output.

WWP put its 15 percent share of the plant up for sale in late 1996. And the Snohomish County Public Utility District is shopping its 8 percent.

But Kopczynski said a piece-meal sale proved impractical. PacifiCorp, which owns the biggest share and manages the plant, has been discussing a complete sale as a possible option, he said.

Plant Manager Rich Woolley acknowledged that those talks have also included closing the plant, which the operators sometimes idle if cheaper power is available in the open market.

The cost of scrubbers that remove sulphur dioxide will further disadvantage Centralia in a competitive marketplace.

“We have a very large investment that has to be made,” Woolley said.

He said that if all the owners agree, Centralia will be put up for sale this summer. By year-end, he said, owners must decide whether to sell or commit to an upgrade.

“We’re going to have to figure this out at that time,” said Woolley, who would not disclose the value Centralia’s owners place on the plant.

WWP was a half-owner in the Centralia mine until 1990, when it sold its interest for $40.8 million.

While the Centralia consortium struggles with its dilemma, Kopczynski said WWP and other utilities are assessing the value of dams and other generating assets the Montana Power Co. has put on the market. The company received a package of information on the facilities Monday, he said.

Kopczynski noted that two of the dams, Kerr and Thompson Falls, are upstream of WWP facilities at Cabinet Gorge and Noxon Rapids on the Clark Fork River.

“That gives you a pretty natural interest,” he said.

A single owner for all four dams might operate the river system more efficiently, Kopczynski said, adding, “We’ve done an excellent job in managing our hydro assets.”

WWP is in the process of relicensing its Clark Fork projects.

Montana Power announced its decision to sell all of its generating plants late last year, surprising state officials and regulators.

The utility wants the option of buying back power from the projects for 2.1 cents per kilowatt-hour.

Kopczynski said WWP might bid for Montana Power facilities in conjunction with other utilities, including cooperatives in Western Montana and North Idaho.

, DataTimes