Colstrip owner speeds up exit plans 9 years to 2025
A Colstrip Power Plant owner has accelerated its exit plans by nearly a decade and has agreed to compensate the community.
Avista Corp. agreed to be financially ready to exit both Units 3 and 4 by 2025. Based in Spokane, Washington, Avista had previously given itself until 2034 to be financially ready for Unit 3’s closure and 2036 for Unit 4.
The change in plans is part of a partial settlement agreement between Avista and multiple intervening parties in the utility’s general rate case in Washington State. Avista has a 15% share of each unit. Customer debt associated with Avista’s ownership share is about $50 million. The settlement calls for lowering customer depreciation share to $38.5 million, or $6.7 million a year through 2025.
One subtle settlement detail with big implications for the power plant's future, Avista won't be spending money on any improvement that would keep Colstrip running beyond 2025. That agreement places a higher cost burden on owners like NorthWestern Energy, which plans to keep Colstrip running for longer than six years.
Read more: https://billingsgazette.com/news/colstrip-owner-speeds-up-exit-plans-years-to/article_ea8e81e9-a0ef-5442-834b-99f177a8fce1.html