Coal to Clean Energy Dominoes are Falling in the West

Over the past few days in the Western US, there have been three game-changing developments in the shift from coal to clean energy on our power grid. Each one merits major headlines on its own, and together they’re a clear indicator of the revolution taking place in the US electricity sector. Nationwide, this shift beyond coal is being driven by two key forces – grassroots leadership and the very new reality that renewables are now cheaper than running existing coal plants in most parts of the US. Together, those forces have resulted in three major dominoes falling in recent days:

1. Xcel commits to 100% carbon free energy

Last week, Xcel Energy made history as the first major US utility to commit to going 100% carbon free. Xcel serves 3.5 million customers across eight states and announced it will decarbonize 80% by 2030 and 100% by 2050.

Years of grassroots pressure by many organizations and local communities made this possible. Nine cities across Colorado, where Xcel made the announcement, had committed to 100% clean, renewable electricity with our Ready for 100 Campaign, including Denver, Pueblo, Aspen, and Boulder. Cities in Xcel’s service territory that have committed to 100% clean energy account for 21% of the utility’s nationwide sales.

And grassroots leaders across Xcel’s entire region, from Minnesota to Michigan to Texas, have been making the case for clean energy for many years in utility commissions and state legislatures.

Now, we’ll be tracking the implementation carefully. As I noted in my statement, “we’ll be looking closely at what it means for workers, the retirement of its remaining coal plants, commitments to clean energy, and avoiding a dangerous and costly build out of gas plants. Xcel’s announcement is a positive step forward, but we need to make sure it’s both sustainable and fair.”

2. Two more Colorado power providers follow suit

On the heels of Xcel’s announcement, two other Colorado power providers followed suit. On Thursday Platte River Power Authority announced it would fully decarbonize by 2030. Platte River provides power to four cities, two of which are committed to 100% renewable electricity -- and local teams with the Ready for 100 Campaign have worked with all four to demand clean energy from their utility, while the Beyond Coal campaign has engaged the utility about its two coal plants and how quickly the price of renewables is falling. The grassroots, tag-team effort across campaigns and with partners will continue forward, working with the utility to develop a plan to decarbonize over the next year.

That same day, rural electric provider Delta Montrose Electric-Association caused a major stir when it announced it would break ties with generation provider Tri-State due to Tri-State’s over-reliance on coal and its reluctance to provide more cost-effective, local renewable energy. “Average member rates have increased by 56 percent since 2005… That's more than double the increase of the Consumer Price Index. And that stands in stark contrast to the overall energy market in which prices have decreased significantly,” explained the Delta Montrose in a press release.

All told, the efforts underway within Xcel, Platte River Power Authority, and Tri-State’s co-ops affect 86% of the state’s coal power plants - almost 5,000 megawatts. The good news is that Colorado is blessed with abundant clean energy resources and thanks to the growing leadership of Coloradans across the state, it seems we will be harnessing more of that wind and sun to power the state very soon.

3. PacifiCorp reveals most of its coal plants are uneconomic

PacifiCorp owns the largest remaining fleet of coal plants in the West, and for years it has refused to disclose the economics of those plants. Oregon, home of PacifiCorp's headquarters, passed legislation in 2016 to go coal free by 2030.  Still concerned about the size, cost, and ongoing pollution from its massive coal fleet in its five state territory outside of Oregon, the Sierra Club repeatedly requested that the Oregon Public Utilities Commission require PacifiCorp to evaluate and disclose the economic status of its full coal fleet.

When the utility continued to drag its heels, Sierra Club released a report by Energy Strategies showing that 20 of PacifiCorp’s 24 coal units could not compete with wind. The utility dismissed the findings and insisted its coal fleet was competitive and economically healthy.

But then PacifiCorp released its own report just last week, which revealed that two-thirds of its coal units were uneconomic. The many news reports that have followed have all pointed out that the Sierra Club’s study was right all along, despite PacifiCorp’s dismissal of the findings. Now, the pressure is mounting on PacifiCorp to face reality and finally begin making a transition plan to move beyond coal to renewable energy, and provide a just transition for workers and communities.

These are big milestones in the West, and it’s not the only place this shift is underway. Despite Trump’s efforts to revive the coal industry, 2018 is on track to be a banner year for 100% clean, renewable energy and a record year for coal plant retirements as US coal consumption has fallen to its lowest level in four decades. Trump just repealed carbon pollution standards for new coal plants, but a new coal plant hasn’t broken ground in over a decade, and with clean energy cheaper than running existing coal plants, there’s no indication his latest rollback will inspire utilities to start building new ones.

Meanwhile, demand for clean energy continues to skyrocket. Cincinnati just became the 100th city to commit to 100% clean energy, followed days after by Dunedin, FL and Evanston, IL. Although recent climate reports are dire, giving us just a decade to turn the corner on climate pollution, we’re making dramatic progress thanks to the leadership of cities and states, and we’ll keep going no matter who’s in the White House.  Join us.