Caleb Heeringa, Deputy Press Secretary - Beyond Coal, (425) 890-9744, caleb.heeringa@sierraclub.org
Today the Sierra Club joined a settlement filed with the Washington State Utilities and Transportation Commission in the proposed merger between Canadian utility Hydro One and American utility Avista Energy that includes an agreement to pay down eight years’ worth of the outstanding debt on the aging Colstrip coal plant in Eastern Montana. Avista, which owns a 15 percent share of Colstrip Units 3 and 4, will have the plant paid off by 2027 instead of 2035 under the terms of this settlement. The settlement is contingent on approval of the merger by utility commissions in Washington, Idaho, Oregon, Montana, and Alaska.
This brings Avista’s Colstrip debt in line with the plant’s largest owner, Puget Sound Energy, and cuts down on the chance of Avista’s customers being left to pay for an inoperable coal plant for years after it closes. As with coal plants across the country, Colstrip is getting more expensive to operate compared to cheaper, cleaner alternatives like solar, wind, battery storage and energy efficiency.
The settlement also includes $3 million from Hydro One shareholders to help the community of Colstrip transition to a post-coal future and a firm commitment that Avista will work with the state of Montana and other Colstrip owners to identify opportunities for new energy projects on the transmission line that runs from Colstrip to Avista territory.
“Coal power is quickly becoming an expensive, risky way for utilities to get electricity as cheaper, cleaner options like wind, solar and battery storage drop in price," said Zack Waterman, Director of the Idaho Chapter of the Sierra Club. "This settlement puts Avista on a more fiscally responsible path and ensures that the next generation of Eastern Washington and Northern Idaho families aren’t going to be left paying off debt on a shuttered coal plant in their monthly energy bills.”
A copy of the full Avista/Hydro One settlement is HERE. More Colstrip-specific details can be found in Appendix A, which is HERE.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3 million members and supporters. In addition to helping people from all backgrounds explore nature and our outdoor heritage, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.