North Wasco County Energy Grok

The Uncertainties of “Cheap” Energy


By Hollie Lund, Ph.D., 4-13-07

 
 

What do coal plants and tube tops have in common? Thirty years later, and against our better judgment, they’re both making a comeback. Why? Well, I won’t even try to explain the tube top phenomena, but the world’s renewed interest in coal is pretty clear: it’s cheap. Or so it seems.

Even here, in a region with abundant renewable resources, we’re not immune. On May 15th, customers of the North Wasco County People’s Utility District (PUD) will be asked to vote on a measure (Measure 33-59) that would authorize the PUD to obtain energy and power from a proposed coal gasification plant in Kalama, Washington.

If you skip to the last line in the measure—which is exactly what most of us do—you’ll read that “any profits [from the sale of excess energy] will be used to reduce customer rates.” Sounds great, right? Before you vote, back up a paragraph.

The measure would also “obligate the district to make payments whether or not the coal gasification plant project is undertaken, completed, operable or operating…[Italics added].” In other words, whether it’s built or not, whether it’s successful or not, we’ll still be paying for it. And there are many reasons to believe that we will not get our money’s worth.

If you were living in the Northwest in 1982, you probably recall the WPPSS (pronounced “whoops” for a reason) disaster. It was the largest municipal default in history at the time; WPPSS—the Washington Public Power Supply System—defaulted on 2.2 billion dollars (that’s billion with a ‘b’) worth of bonds, leaving customers of the Bonneville Power Administration (which means pretty much everyone in the Pacific Northwest) to pay the bill. Twenty five years later, we’re still paying off that debt.

Here’s the kicker though: WPPSS—the agency responsible for this financial disaster—and Energy Northwest—the agency that would be in charge of building the new coal plant in Kalama—are one and the same. Just a new name on an old and familiar face.

More importantly, the proposed plant relies on a new technology (known as Integrated Gasification Combined Cycle, or IGCC) that remains largely untested. Only two models exist in the U.S., and both operate at less than one-half of the capacity proposed for Kalama (the Kalama plant would produce 680 megawatts of power each year; the largest existing model produces around 260). The additional technology that would allow the plant to capture and sequester the carbon dioxide (injecting it into the earth rather than emitting it into the air) is also untested and still not cost effective for use in large power plants.

Because of the technological uncertainties, the costs are still relatively unknown—as our neighbors are quickly discovering. Idaho City, which voted recently to invest in a similar IGCC plant being built by the Utah Associated Municipal Power System, is already scaling back on the size of their investment due to a nearly 33 percent cost increase less than one year into the project. Others, such as Lower Valley Energy in Wyoming, have opted out entirely.

Even if we do approve the measure, and the plant does operate successfully, who’s going to buy our excess energy? California has already said no to any sources that emit more carbon dioxide than a modern natural gas plant (which would include the Kalama plant since the “capture and sequester” technology is not yet available). And recent events indicate that other western states may be soon to follow.

Personally, I’d rather put my money in tube tops.

For more news on coal in the west, read Has Tri-State Seen the (Green) Light? by Richard Martin.



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Comments

By Craig Moore, 4-13-07
By tomi, 4-13-07
By Craig Moore, 4-13-07
By tomi, 4-13-07
By Craig Moore, 4-13-07
By deannab, 4-13-07
By Kathleen Fitzpatrick, 4-14-07
By Anne Vance, 4-14-07
By Kathleen Fitzpatrick, 4-14-07
By Craig Moore, 4-15-07
By Hollie Lund, 4-15-07
By Craig Moore, 4-15-07
By Kathleen Fitzpatrick, 4-15-07
By Kathleen Fitzpatrick, 4-15-07
By Hollie Lund, 4-16-07
By Kathleen Fitzpatrick, 4-16-07
By Tim Wagner, 4-16-07
By Gary Miller, 4-17-07
By Kathleen Fitzpatrick, 4-17-07
By mike, 4-17-07
By Hollie Lund, 4-18-07
By Diane, 4-19-07
By Craig Moore, 5-02-07
By Hollie Lund, 5-02-07
By Craig Moore, 5-02-07

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