IEEFA Analysis of Colstrip 1 and 2 Finds Outlook for Two Coal-Fired Electricity Plants in Montana Worse Than Previously Known

OLYMPIA, Wash, March 3, 2016 (IEEFA) — The Institute for Energy Economics and Financial Analysis is presenting testimony to the state Utilities and Transportation today that shows how two aging coal-fired electricity generators co-owned by Puget Sound Energy in Montana are worse investments than previously known.

The testimony, by IEEFA Director of Resource Planning Analysis David Schlissel, presents analysis that highlights how trends in natural gas markets make Colstrip 1 and 2 increasingly uncompetitive and increasingly costly to their owners. It also cites data from Talen Energy, which shares ownership of the plants 50-50 with Puget Sound Energy, that shows operating costs at the facilities rising and finds Talen’s share of a companion plant, Colstrip 3, “now has zero to negative valuation over the next 20 years.”

“Colstrip 1 and 2 have become an increasingly perilous proposition for PSE and its customers,” Schlissel said.

The testimony builds on two previous analyses published by IEEFA, in June and October 2015.

“In October we said: ‘It’s 2015 now, and it’s time to move toward retiring these two costly and outdated plants,’ Schlissel said. ‘Today we’d change just one word in that conclusion: It’s 2016 now, and it’s time to move toward retiring these two costly and outdated plants.”

Testimony detail and an accompanying commentary by David Schlissel are posted here.

Additional background: “A Bleak Future for Colstrip Units 1 and 2” and “Long-Dreary Outlook for Two Montana Coal-Fired Plant Has Gotten Worse.”

Media contact: Karl Cates, [email protected], 917.439.8225

About IEEFA

The Cleveland-based Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy and to reduce dependence on coal and other non-renewable energy resources.