BOISE, ID -- As part of a settlement deal released yesterday, Idaho Power announced its intention to close the two units at Nevada’s North Valmy Generating Station several years ahead of schedule. Idaho Power plans to close Unit 1 in 2019 and Unit 2 in 2025. Idaho Power’s current schedule depreciates Units 1 and 2 in 2031 and 2035, respectively.
Valmy is the last remaining utility-owned coal plant in Nevada after the Reid Gardner plant officially shuttered in March. Idaho Power and NV Energy jointly own the Valmy power plant, which now operates primarily to meet peak energy demand in the summer but remains idle through much of the year. Sierra Club analysis found that operating Valmy until its scheduled retirement in 2025 would cost utility customers an additional $30 million compared to market prices.
The settlement announcement requires Idaho Power to work with NV Energy to reach an agreement to stop burning coal at Valmy according to the new timeline. Without an agreement, Idaho Power must issue filings in 2020 and 2026 to justify its inability to meet the timeline.
NV Energy’s long-term commitment to the plant is also in question. At the end of 2016, the Nevada Public Utilities Commission ordered NV Energy to complete, by the end of this year, a new economic analysis of the Valmy coal plant after Sierra Club’s testimony revealed that it’s wasting customers’ money each day it remains open.
Zack Waterman, Director of the Idaho Chapter Sierra Club, issued the following statement:
The news that Idaho Power will exit the Valmy coal plant earlier than planned is a clear victory for the environment and also for utility customers who would be saddled with the high cost of operating the plant. Early coal retirements also highlight the tremendous economic opportunity we have to invest our energy dollars into Idaho’s clean energy economy rather than continue to prop up polluting coal plants in surrounding states.
Ben Otto, Energy Associate with the Idaho Conservation League, issued the following statement:
For several years, the Idaho Conservation League has made the case that burning coal at North Valmy was a bad deal for Idaho Power customers and Idahoans who breathe clean air. We are pleased to find common ground on moving away from Valmy coal and towards Idaho's clean energy future.
Elspeth DiMarzio, Sierra Club’s Campaign Representative in Nevada, issued the following statement:
The news that Idaho Power will exit the Valmy coal plant is a clear victory for the environment, but also for Idaho’s utility customers who would be saddled with the high cost of operating a coal plant as the price of cleaner alternatives steadily drops. We hope that NV Energy will take similar steps to protect its ratepayers in Nevada. It is clear that coal is not economically competitive, and it’s time to accelerate the closure of Valmy in favor of creating new jobs in Nevada’s growing clean energy economy.
Zack Waterman, Director
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