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Portland General Electric Plant Repairs May Top $46 Million

Posted on: Thursday, 22 December 2005, 18:00 CST

By Gail Kinsey Hill, The Oregonian, Portland, Ore.

Dec. 22--Portland General Electric hopes to return its Boardman power plant to operation by Feb. 1, revving up a facility that, while silent, has cost the company -- and possibly ratepayers -- as much as $700,000 a day.

A faulty rotor forced PGE to shut down the efficient coal-fired plant Oct. 22. Crews hoisted the 55-ton component onto a massive cargo plane for shipment to the East Coast for repairs.

The utility has asked the Oregon Public Utility Commission for permission to track the costs of replacement power and, at a later date, bill customers for the expense.

PGE estimates that replacement power, all told, could cost the utility and its 765,000 ratepayers an extra $46 million -- or more, if the shutdown continues past Jan. 31.

"With a plant that's this important, getting it back in service is a top priority," said Scott Simms, a PGE spokesman.

Only PGE's hydroelectric plants produce electricity more cheaply than the coal-fired facility, located near Boardman in north-central Oregon.

The Boardman shutdown has forced PGE to rely more heavily on its stable of natural-gas-fired plants, which have become increasingly expensive as natural gas prices have reached unprecedented heights.

The utility is also buying power on wholesale markets, paying in excess of $70 a megawatt-hour. By comparison, operating costs at the Boardman plan are just $12 a megawatt-hour.

In all, PGE estimates the plant failure is costing the utility between $450,000 and $700,000 a day.

The PUC likely won't decide for several months whether to let PGE charge customers for the expense.

Bob Jenks, executive director for the Citizens' Utility Board, an organization representing residential customers, said PGE will have to show that the shutdown was unforeseen and the company acted prudently in dealing with the problem.

"Recovery from ratepayers is not guaranteed," Jenks said.

PGE will probably have to absorb some of the extra costs, Jenks said, and any expense borne by customers would be spread out over time so that monthly charges on utility bills would be minimal.

PGE has some of the highest residential rates in the Northwest, at about 8.2 cents a kilowatt-hour. The company is expected to ask for a general rate increase early next year, but hasn't yet indicated the size of the request.

The 590-megawatt Boardman plant is one of PGE's workhorse facilities. The utility owns a 65 percent share and operates the plant near capacity almost year-round.

Two months ago, PGE crews noticed excessive vibrations in the rotor, which, under steam pressure, turns the plant's generator to create electricity. Attempts to rebalance the rotor proved unsuccessful.

PGE and the turbine's manufacturer, Siemens-Westinghouse, decided to ship the faulty part to Richmond, Va., for repairs.

The massive piece of equipment began its journey in early December, first on a flatbed truck to the Portland airport, then in the belly of a Russian cargo plane to the East Coast.

Meantime, PGE officials are urging customers to conserve energy, thus easing demand and the need for expensive market power.

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Copyright (c) 2005, The Oregonian, Portland, Ore.

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Source: The Oregonian

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