BILLINGS, Mont. — Avista Corp. has agreed to stop spending money on improvements for the Colstrip power plant after 2025 and will give $3 million to help the Montana community dependent on the coal-fired plant.
The settlement agreement by the Spokane-based utility in its Washington rate case could hasten the closure of one of the largest coal power plants in the nation.
Avista is one of six Colstrip owners, with a 15 percent share in units 3 and 4. Those units are scheduled to continue operating after the older units 1 and 2 shut down at the end of the year.
The Billings Gazette reported the agreement would add higher costs to the other owners that plan to keep the plant operating beyond 2025. The $3 million would go to a Colstrip community transition fund.
