PacifiCorp, a multi-state utility holding company owned by Warren Buffett, has made significant changes to its energy strategy by extending the life of two coal-fired power plants in the Pacific Northwest. The company’s updated Integrated Resource Plan (IRP) marks a departure from its previously ambitious 20-year energy transition plan.
Key revisions in the new plan include the extension of the operation of fossil-fueled plants for more than a decade, a decrease in the originally proposed expansion of solar and energy storage, and an increase in wind power. Additionally, PacifiCorp has introduced gas-peaking capacity to compensate for the reduction in other renewable energy sources.
The decision to alter its energy portfolio was influenced by factors such as limited battery supplies and recent developments in the Environmental Protection Agency’s ‘good neighbor’ rule, which aims to regulate emissions from power plants. This rule has faced criticism from industry groups for being costly and ineffective.
In response to these changes, Rick Link, PacifiCorp’s Senior Vice President of Resource Planning, stated, “PacifiCorp’s long-range planning provides a framework for future actions the company anticipates will be needed to provide the reliable and essential electric service our customers expect and deserve.”
The company’s upcoming 2025 resource plan will guide its future steps towards “incremental resource acquisition,” as PacifiCorp continues to navigate the evolving landscape of the energy sector.
