Washington Utilities and Transportation Commission directs utilities to reconsider reliance on coal
The Washington Utilities and Transportation Commission (UTC) acknowledged this week the 2017 Integrated Resource Plans (IRPs) for Washington’s three investor-owned electric utilities but directed the utilities to take a closer look at their plans for future coal-fueled generation investments.
UTC directed Avista Corporation, Pacific Power, and Puget Sound Energy to use a more comprehensive cost of carbon estimate in future IRPs.
The commission expressed concerns about costs associated with the coal-fueled resources and the economic risk the companies face by continuing their investments in them. The UTC directed the companies to answer questions about the future financial viability of their coal-fired power plants and to undertake examinations of the costs of the resources.
UTC also requested that the companies put more focus on studying and responding to changes in state and federal carbon policy. It directed the utilities to use a comprehensive, peer-reviewed estimate of the monetary cost of climate change damages and suggested estimates produced by the Interagency Working Group on Social Cost of Greenhouse Gases.
“It is imperative that utility planners recognize the risks and uncertainties associated with greenhouse gas emissions and identify a reasonable, cost-effective approach to addressing them,” UTC stated.
Commissioner Jay Balasbas agreed with Chair Dave Danner and Commissioner Ann Rendahl that utilities should factor economic risks of future greenhouse gas regulations into future IRPs but disagreed with the majority on using social cost of carbon as the representation for future greenhouse gas regulation.
