Colstrip Steam Plant

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Colstrip Steam Plant is an operating power station of at least 1556-megawatts (MW) in Colstrip, Rosebud, Montana, United States with multiple units, some of which are not currently operating. It is also known as Colstrip 1&2 power station (Unit 1, Unit 2), Colstrip 3&4 power station (Unit 3, Unit 4).

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Colstrip Steam Plant Colstrip, Rosebud, Montana, United States 45.882386, -106.612847 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • Unit 1, Unit 2, Unit 3, Unit 4: 45.882386, -106.612847

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Unit 1 retired coal - subbituminous 358.4 subcritical 1975 2020
Unit 2 retired coal - subbituminous 358.4 subcritical 1976 2020
Unit 3 operating coal - subbituminous 778 subcritical 1984 2025 (planned)
Unit 4 operating coal - subbituminous 778 subcritical 1986 2025 (planned)

Table 3: Unit-level ownership and operator details

Unit name Owner
Unit 1 Talen Montana LLC [50.0%], Puget Sound Energy Inc [50.0%]
Unit 2 Talen Montana LLC [50.0%], Puget Sound Energy Inc [50.0%]
Unit 3 PacifiCorp [10.0%], Portland General Electric Co [20.0%], Talen Montana LLC [30.0%], Puget Sound Energy Inc [25.0%], Avista Corp [15.0%]
Unit 4 PacifiCorp [10.0%], Portland General Electric Co [20.0%], Puget Sound Energy Inc [25.0%], Avista Corp [15.0%], NorthWestern Energy Group Inc [30.0%]

Project-level coal details

  • Coal source(s): Rosebud mine

Financing

Ownership

Puget Sound Energy (PSE) and Talen Energy each own 50% of Units 1 & 2.

PSE owns a 25% share in Units 3 and 4, Portland General Electric 20%, Avista Utilities 15%, and PacificCorp 10%. Talen owns 30% of unit 3 and NorthWestern Energy owns 30% of unit 4.[4]

On December 9, 2019, Northwestern Energy executed a purchase and sale agreement for the acquisition of Puget Sound's Energy's 25% stake in Unit 4.[5]

In April 2020 it was reported that Talen Energy had exercised its contractual rights to obtain a portion of Puget Sound Energy.[6] As of June 2020 there is no information to be found if the deal was approved or cancelled, the plans are likely still under consideration by the Montana Public Service Commission and Washington Utilities and Transportation Commission.[7]

Declining value

In 2013 PPL Corp. wrote down the value of its stake in Colstrip by more than US$400 million, filings with federal regulators show. In 2015 PPL spun off Colstrip and other assets to form Talen Energy. Since the 2013 write-down, Montana revenue officials have reduced the value of Talen's 25-percent ownership in the plant to just $45.5 million – an 87 percent reduction. Talen sells its power on the open market, so it cannot pass along its costs to consumers. The decreased value in Talen's ownership has forced Rosebud County to cut its current budget about 10 percent.[8]

Cryptocurrency contract

In March 2018, Public Service Commissioner Travis Kavulla said bitcoin mining operation CryptoWatt Mining had an energy contract with Talen Energy to be supplied with 64 MW of power from the Colstrip Steam Plant.[9]

A series of scandals involving a $722 million investment Ponzi scheme led to the closure of the cryptocurrency facility, followed by a reopening and ultimate acquisition by Atlas Power.[10][11] Rick Tabish -- one of the key project developers -- also served 10 years in federal prison for charges related to the murder of a Las Vegas casino developer and separate charges for extortion and the kidnapping and beating of a former business partner.[12][13]

The State of Montana has permitted the operation to consume up to 75 MW, yet it has been reported that upon the facility changing from mining Bitcoin to mining Ethereum, actual power consumption has been as low as 25 MW.[14] In addition to mining cryptocurrency, the facility also performs machine learning and other data processing services.[15] Cryptowatt signed a 64 MW Power Purchase Agreement with Portland General Electric, which distributes power from the Colstrip Steam Plant.[16][17]

Planned retirement

Units 1 and 2 (358 MW each) were planned for closure in 2022. Their closure would leave units 3 and 4 of 778 MW each.[18]

In September 2017, Puget Sound Energy filed a legal settlement with the Washington Utility and Transportation Commission, saying it was financially ready to shutter the entire coal-burning facility (units 3-4) by 2027.[19]

In June 2019, Talen Energy announced that the retirement of units 1 and 2 was planned for December 31, 2019. According to Talen Montana President Dale Lebsack: "we have been unsuccessful in making the units economically viable. Fuel constitutes the bulk of our operating cost, and our repeated efforts to negotiate lower fuel prices with Westmoreland Rosebud Mining, the plant's sole and only historically permitted fuel supplier, have been rebuffed. Rather than working with us to keep Units 1 and 2 open, Westmoreland is proposing to increase the units' fuel cost going forward."[20]

In September 2019, it was reported that units 3-4 were still planned for retirement in 2027.[21]

In November 2019, Talen Energy said units 1-2 would retire in 2020.[22]

In January 2020, it was reported the planned shutdown of units 1-2 of Colstrip Power Plant had begun. According to the Billings Gazette, "Colstrip Unit 1 is no longer operating. Unit 2 is expected to shut down [this week]."[23]

Owner disagreements

As of 2021, there continued to be disagreement about what it would take to shut down the power plant. Colstrip owners in Oregon and Washington, who held a combined 70% stake in the southeast Montana power plant, were preparing to exit in 2025. The Pacific Northwest owners are Puget Sound Energy and Avista, both from Washington, and Oregon utilities Portland General Electric and PacifiCorp. They had sought arbitration in Spokane to settle whether it took a unanimous vote by owners to close coal-fired Colstrip. Talen had gone as far as persuading the 2021 Montana Legislature to write a new law mandating that Colstrip disputes be settled in Montana, arguing that Washington state bias favoring action on climate change worked against Colstrip. PacifiCorp told the public that retiring Colstrip in 2025 was part of its resource plan.[24]

A Colstrip website attempted to reassure certain stakeholders: "It’s important to keep in mind there are no plans to retire Colstrip Units 3 & 4. (...) Colstrip Units 3 & 4, which are younger units, produce the most energy, support the most jobs, are cleaner, more efficient, and will continue to operate for years to come. Taxes paid to Montana on Units 3 & 4 are more than triple the amount paid to Montana on Units 1 & 2."[25]

In October 2022, a U.S. District Court ruled the new Montana law unconstitutional. Utility shareholders were no longer forbidden from attempting to close the plant. The governor of Montana had claimed the law to be a strike against "woke" Washington politicians. Meanwhile, the judge found that the law served "no legitimate purpose".[26]

In March 2023, it was stated that PacifiCorp and Portland General Electric would be exiting Colstrip in 2030 rather than 2025.[27]

Book on Colstrip Released

In October 2010 photographer David T. Hanson released a book titled Colstrip, Montana, which, according to a review on TreeHugger.com:

[T]ells the story of a town that would never have been founded if it weren't for the fortune in dirty coal that lies beneath it—around $350,000 per acre. It is a story told through Hanson's photographs; a Montana native, Hanson has been photographing Colstrip since the early 1980s. The book's only text consists of an introduction and a concluding essay by writer and environmental activist Rick Bass.
The 81 photographs that are the heart of the book are sobering. They highlight not only the environmental destruction that the mines and plant have wreaked on the landscape, but also the overwhelming industrialism that surrounds Colstrip's inhabitants. They insist on the essential ugliness of how we get this coal: it cannot be right or healthy, for us and our world. There are no people in the photographs, but the human hand print is everywhere.[28]

Emissions Data

  • 2006 CO2 Emissions: 18,240,485 tons
  • 2006 SO2 Emissions: 14,298 tons
  • 2006 SO2 Emissions per MWh:
  • 2006 NOx Emissions: 32,869 tons
  • 2005 Mercury Emissions: 22 lb.

Death and disease attributable to fine particle pollution from Colstrip Steam Plant

In 2010, Abt Associates issued a study commissioned by the Clean Air Task Force, a nonprofit research and advocacy organization, quantifying the deaths and other health effects attributable to fine particle pollution from coal-fired power plants.[29] Fine particle pollution consists of a complex mixture of soot, heavy metals, sulfur dioxide, and nitrogen oxides. Among these particles, the most dangerous are those less than 2.5 microns in diameter, which are so tiny that they can evade the lung's natural defenses, enter the bloodstream, and be transported to vital organs. Impacts are especially severe among the elderly, children, and those with respiratory disease. The study found that over 13,000 deaths and tens of thousands of cases of chronic bronchitis, acute bronchitis, asthma, congestive heart failure, acute myocardial infarction, dysrhythmia, ischemic heart disease, chronic lung disease, and pneumonia each year are attributable to fine particle pollution from U.S. coal plant emissions. These deaths and illnesses are major examples of coal's external costs, i.e. uncompensated harms inflicted upon the public at large. Low-income and minority populations are disproportionately impacted as well, due to the tendency of companies to avoid locating power plants upwind of affluent communities. To monetize the health impact of fine particle pollution from each coal plant, Abt assigned a value of $7,300,000 to each 2010 mortality, based on a range of government and private studies. Valuations of illnesses ranged from $52 for an asthma episode to $440,000 for a case of chronic bronchitis.[30]

Table 1: Death and disease attributable to fine particle pollution from Colstip Steam Plant

Type of Impact Annual Incidence Valuation
Deaths 31 $230,000,000
Heart attacks 48 $5,300,000
Asthma attacks 530 $4,000
Hospital admissions 22 $28,000
Chronic bronchitis 19 $8,600,000
Asthma ER visits 31 $11,000

Source: "Find Your Risk from Power Plant Pollution," Clean Air Task Force interactive table, accessed February 2011

"High Hazard" Surface Impoundment and CO2 Emissions

In August 2009, Puget Sound Energy (PSE), Washington State's largest energy provider released its energy plan that was criticized by the Sierra Club and others for continuing its business-as-usual approach by promoting the use of coal-generated power. Approximately two-thirds of PSE's coal power comes from the Colstrip Steam Plant in eastern Montana. PSE’s use of energy from Colstrip resulted in 6.3 million tons of greenhouse gas emissions in 2008.[31]

In 1977 Colstrip was equipped with scrubbers which reduces its sulfur dioxide output. However, critics of the plant note that the burners still turn out massive amounts of carbon dioxide.

Colstrip ranked 9th in terms of largest carbon dioxide emissions and Fly Ash Pond

According to a 2009 report by Environment America, "America's Biggest Polluters," the Colstrip Steam Plant is the ninth dirtiest plant in the nation, releasing 19.3 million tons of carbon dioxide in 2007. Ranking is based upon Environmental Protection Agency data.[32] Additionally, the facility's coal-ash pond has caused extensive damage and the owners were forced to pay $25 million in the Spring of 2008 to 57 local residents. Entire aquifers in the area have been polluted.[33]

EPA ranks Colstrip power plant among worst in nation for mercury

Environmental group Environment America in January 2011 released a report ranking power plants according to the amount of mercury the plant emits into the air and soil.

The group, using EPA data, ranked a Montana power company the 11th-largest coal-fired polluter of mercury in the nation and the worst among those in Western states. According to its report, ”Dirty Energy’s Assault on our Health: Mercury,” Colstrip Steam Electric Station emitted 1,490 pounds of mercury in 2009. This accounted for most of the 1,726 pounds of mercury released by all of Montana’s power plants that year.[34]

Water Pollution from Coal Ash Ponds

The following is an account by Kristen Lombarki of the Center for Public Integrity, detailing the problems related to coal ash at the Colstrip Steam Plant:[35]

Pat Nees never liked the water at the Moose Lodge. Almost everyone in tiny Colstrip, Montana, drank and dined at Lodge #2190, but the well water was notorious — it smelled like a sewer. It felt oily, gritty from sediment. Lodge members braving a drink — Nees among them — frequently doubled over from indigestion.
Nees, 57, a board member at the lodge, fielded numerous complaints about the water. But he and fellow Moose members, many of them equipment operators and technicians at the nearby Colstrip Steam Electric Station, a giant coal-fired power plant, never thought twice about the massive waste ponds a half mile away.
They never fathomed they were drinking water laced with coal ash.:Colstrip sits above the Rosebud seam, a layer of sub-bituminous coal running through the Powder River Basin, a perfect place for a power plant. The hamlet of trailers and bungalows that makes up the town exists solely because of the electric station. The place boomed in the ’70s and ’80s, when plant construction drew thousands. And while it’s faded since, Colstrip remains a company town, populated by 2,300 folks toiling at the utility or the local mine that feeds nine million tons of coal a year into the power plant’s furnaces.
A metal behemoth, the plant’s four generators give off a constant rumble. Operated by PPL Montana and owned by a consortium including other firms — Avista Corporation, PacifiCorp, Portland General Electric, NorthWestern Energy, and Puget Sound Energy — it burns a boxcar of coal every five minutes, powering a million and a half households up and down the West Coast. As the operator, PPL Montana speaks for the plant.
Residents near the plant don’t seem to mind the air pollutants pouring out of the stacks — Colstrip station “scrubs” 95 percent of noxious gases from the smoke. What gets them is the coal ash — 964,000 tons of waste in 2005, the most recent year for which Energy Department statistics are available. The plant’s scrubbers pump ash slurry into an elaborate pond system at 7,500 gallons per minute. The acidic smell of the pond isn’t easily forgotten. The two biggest ponds — one spans 168 acres; the other, 367 — bookend the town. Tom Ring, the state environmental-science specialist overseeing the plant, describes a six-page list of almost two dozen chemicals in the ponds as “a table of woe.”
State records and company documents revealed in court peg the so-called Stage Ponds as top culprits for leakage of some of those chemicals. Built in 1976 with a clay buffer, the Stage 1 Pond began oozing pollutants as far back as 1979 and has continued to do so — even though it was “capped”— covered over with a liner — in 1997. Its companion, the Stage 2 Pond, came online in the ‘90s, and still receives coal ash at 3,000 gallons per minute; lined with plastic, this pond has failed 18 times.
The consequences weren’t known until residents sued the consortium over groundwater issues in 2003. Through the discovery process, documents obtained by the plaintiffs show that coal ash has befouled groundwater hundreds of feet beyond the ponds with boron, sulfate, and chloride, among other chemicals. Pollutants have also corrupted a handful of wells in neighborhoods below the Stage ponds; other wells, drilled through the pollution, have been rendered inoperable.
Not that there weren’t warning signs. Take the water at the Moose Lodge, for instance. Nees says the board eventually tested the well, only to find contaminants hovering above safety levels. Members began hauling water in jugs, never tying their predicament to the ponds situated on an overlying plateau. And neither did Nees, a 29-year veteran of the plant.
But the power companies were documenting coal-ash contamination. Since the mid-‘80s, plant hydrogeologists had tracked a filthy plume of boron emanating from the Stage ponds. Essential to plant life in low doses, boron turns lethal at levels of 2 milligrams per liter, and presents a litany of other health hazards. The EPA has issued in draft a “health reference level” for boron not to exceed drinking-water standards of 1.4 milligrams per liter. By 1993, the lodge’s well had already exhibited unsafe concentrations at twice that level. In 2000 and subsequent years, records show its boron levels were reaching up to 13 times the limit.
“It’s amazing, isn’t it?” asks Nees. Now retired, Nees is soft-spoken and exceedingly polite, but his face reddens when he talks about the bouts of diarrhea he suffered after drinking the lodge’s water. In their lawsuit, the plaintiffs don’t tie illnesses directly to the coal-ash contamination. But Alan Nye, a Montana toxicologist who reviewed the contamination data on their behalf, noted in court records that “private wells contaminated by the… plume should not be used for irrigation water or for drinking by people or animals.”
Judie Soiseth, a petite woman who ignored the rainbow film in her water, ceased using it once her cats refused to lap it up. “Every time I used [the water] I felt maybe I shouldn’t,” confides Soiseth, who was diagnosed with nodules on her thyroid and believes they are somehow tied to the water.
In a statement, the company calls the $25 million settlement reached in May “a good outcome for all parties involved.” It stresses that PPL Montana “inherited the groundwater issues after it purchased an interest in Colstrip in 1999 and took immediate steps to correct them” — installing monitoring wells and modern pond liners. The lawsuit prompted the company to spend $900,000 to extend municipal water to the neighborhoods below the ponds.
“PPL Montana will continue to take appropriate actions to help alleviate concerns that people have about their wells,” the statement reads, “and help prevent any risk of contamination.”
According to state records, however, the coal-ash ponds are still leaking, forcing PPL Montana to build wells to recover contamination. Made of giant metal cylinders, the wells are drilled 300 feet into the ground and topped by electric pumps that pull out the polluted water and cycle it back to the ash ponds. A second lawsuit over ash contamination, filed by residents in 2007 and currently pending, suggests more trouble. It claims that the plant’s largest pond has unleashed slurry towards two cattle ranches and tainted a creek.

Citizen action

Montana ranchers will sue over coal mining impacts

Ranchers near Colstrip, Montana say their livelihoods are threatened by pollution and disrupted water-flows associated with nearby coal mines. Ranchers, including Doug McRae, say that they have attempted to get the Montana Department of Environmental Quality to address their issues, to which they have not been assisted. As such, a group of ranchers has teamed up with conservationists to file a notice of intent to sue. The notice, filed on September 20, 2011 charges that the DEQ has neglected to protect streams and rivers from coal mining throughout Montana. From the date of the filing, the DEQ has 60 days to begin addressing the water quality and supply impacts caused by mining operations or it will face a lawsuit from conservationists on behalf of ranchers.[36]

Citizen groups

Articles and Resources

References

  1. 1.0 1.1 "2020 Electric Integrated Resource Plan, page 63" myavista.com, accessed June 2020
  2. 2.0 2.1 "Pacificorp 10-k 2019" bkenergy.com accessed June 17,2020
  3. "Our Company" northwesternenergy.com, accessed June 17, 2020
  4. Tom Lutey, "Colstrip on track for big changes in 2030s," Billings Gazette, Jun 14, 2017
  5. " Energy Future 2019" northwesternenergy.com accessed June 2020.
  6. "NW Energy may get only half of Colstrip acquisition" ktvh.com, April 13, 2020
  7. "NorthWestern Energy unveils plan to buy 25% of Colstrip coal unit for $1" utilitydive.com, December 11, 2019
  8. "Write-down on Montana coal plant slashes value 87 percent," AP, Dec 16, 2015
  9. "Etc: Bitcoin fuels a boom for coal," Missoula Independent, Apr 5, 2018
  10. "Montana Crypto Mine Back in Action Despite Owner's Uncertain Legal Fate". Cointelegraph. January 28, 2020. Retrieved June 9, 2022.
  11. "Rick Tabish: From prison to a $1.9B data deal". Pahrump Valley Times. February 4, 2022. Retrieved June 9, 2022.
  12. "Gov. Doug Burgum aware of data center developer's dark past". Associated Press. January 28, 2022. Retrieved June 9, 2022.
  13. "Ex Ted Binion Murder Suspect Rick Tabish Building 1.9 b data center," Casino.org, February 4, 2022
  14. "This Solar Crypto Mine Plan Is Stranger Than Fiction". Gizmodo. May 27, 2021. Retrieved June 9, 2022.
  15. "Atlas Power LLC Overview". SignalHire. {{cite web}}: line feed character in |title= at position 16 (help)CS1 maint: url-status (link)
  16. "Daines: Colstrip closures could hurt Montana's Bitcoin mining business". Montana Right Now. August 22, 2018. Retrieved June 10, 2022.
  17. "Crypto miner plans to exit Hardin coal-fired power plant". Kilgore News Herald. April 6, 2022. Retrieved June 10, 2022.
  18. Matt Brown, "Puget Sound to close Colstrip Units 1, 2 by 2022," Associated Press, July 12, 2016
  19. "Colstrip edges toward complete closure," Billings Gazette, Sep 15, 2017
  20. "Colstrip Steam Electric Station Units 1 and 2 to Retire," Talen Energy, June 11, 2019
  21. "PacifiCorp to add 7 GW renewables + storage, close 20 of 24 coal plants," Utility Dive, Oct 3, 2019
  22. Lutey, Tom (November 17, 2019). "Colstrip owner pushes closure past Christmas". Billings Gazette.{{cite web}}: CS1 maint: url-status (link)
  23. Lutey, Tom. "Shutdown of Colstrip Units 1 and 2 is underway". The Billings Gazette. Retrieved 2020-01-07.
  24. "Talen scores minor victory in Colstrip battle in court," Montana Standard, August 20, 2021
  25. "FAQ," Colstrip Facts, accessed January 2022
  26. "Newly-passed Colstrip laws unconstitutional, court rules," Billings Gazette, October 10, 2022
  27. "A green state tosses a lifeline to a major coal plant," ClimateWire, March 31, 2023
  28. "Colstrip, Montana and the Tragedy of an American Coal Plant (Book Review)" Alex Davies, Treehugger.com, October 16, 2010.
  29. "The Toll from Coal: An Updated Assessment of Death and Disease from America's Dirtiest Energy Source," Clean Air Task Force, September 2010.
  30. "Technical Support Document for the Powerplant Impact Estimator Software Tool," Prepared for the Clean Air Task Force by Abt Associates, July 2010
  31. "Puget Sound Energy's new energy plan disappoints: Sierra Club calls on the utility to speed up coal replacement," Sierra Club, August 8, 2009.
  32. "America's Biggest Polluters: Carbon Dioxide Emissions from Power Plants in 2007" Environment America, November 24, 2009
  33. ", Kristen Lombardi, The Center for Public Integrity, February 19, 2009.
  34. "Montana’s Colstrip Power Plant Among Worst in the Nation for Mercury Emissions, Says Enviro Group" Brendon Bowsworth, January 31, 2011.
  35. "Coal Ash: The Hidden Story," Center for Public Integrity, February 19, 2009
  36. "Montana ranchers say they’ll sue over coal mine impacts" Summit Voice, SummitCountyVoice.com, September 21, 2011.

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.