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Grant PUD eyes new coal plant

by Lynne Lynch<br>Herald Staff Writer
| June 20, 2008 9:00 PM

Proposed project could be another energy source

MOSES LAKE - Grant County PUD staff will gather information about adding coal to its power portfolio in case power production decreases at its dams.

The utility is looking at the possibility of someday acquiring power from a planned coal-fired power generating plant project in Montana, said PUD Commissioner Tom Flint. He described the Highwood Generating Station as a clean-coal project that plans to use different technology.

Utilizing coal power would allow the PUD to diversity its power options, he said.

"If we get into a low water year, we've got something we can rely on," Flint said. "The important thing is to get a firm power base that we can use and one that's 24-7 we can rely on."

Flint said Grant PUD commissioners agreed this week that staff should pursue more information about the project.

"It looks like a win-win," Flint said. "They're using the clean coal technology and carbon sequestration."

Carbon sequestration is defined on the U.S. Department of Energy's Web site as "one of the most promising ways for reducing greenhouse gases in the atmosphere."

Southern Montana Electric Generation & Transmission Cooperative Inc., previously selected a site for the plant near Great Falls, Mont., according to the cooperative's Web site.

Flint said the plant's initial phase may entail 250 megawatts and there's a possibility for a 250 megawatt expansion. There may be 70 megawatts available for the PUD, he said.

The plant has not been built. Discussions on how to pay for the plant "are ongoing," the cooperative's Web site states.

According to a May 5 online news story from Billings-based KTVQ, Yellowstone Valley Electric Cooperative, a lead financial backer of the plant, pulled out of a project deal because of concerns over increasing project costs.

Flint said he was aware the backer pulled out.

He said PUD staff and PUD General Manager Tim Culbertson have known about the proposed project for a long time.

At this week's commission meeting, Culbertson said he thought the project was the best potential staff has seen. He also said there's a value of having a first right of refusal to participate.

Commissioner Randy Allred said he thought there were too many potential positives and potential not to explore the idea.