Coal Plant Closure

The Idaho Public Utilities Commission approved a request from Idaho Power Company to accelerate depreciation and recover costs associated with the electric utility’s operation and eventual retirement of the North Valmy Power Plant, a coalfired generating facility Idaho Power co-owns with NV Energy.

The ruling allows the company to hasten the recovery of its investment in the North Valmy unit through base rates, leading to a rate increase of 1.17%. The North Valmy plant is located near Winnemucca, Nevada, and consists of two units. Unit 1 went into service in 1981 and Unit 2 in 1985. 

Idaho Power and NV Energy each own 50% of the plant. Although NV Energy is the actual operator of the plant, the two companies make joint decisions about such matters as environmental investments, plant retirement, and conversion. Idaho Power told the commission that it will negotiate with co-owner NV Energy to accomplish a permanent end to coal-burning operations at North Valmy Unit 1 by December 31, 2019, and at North Valmy Unit 2 by December 31, 2025.

Idaho Power averred that closing the plant early will ultimately save customers money. It stated that a significant decrease in market prices for electricity already had made it uneconomic to operate the 522-megawatt plant except during extremely cold or hot weather, when the demand for energy surges. (Case No. IPC-E-16-24, Order No. 33771)