Power Plant Risks Early Closure in Westmoreland Bankruptcy

One of the largest power plants in the West could be at risk if Westmoreland Coal raises the price of coal at the utility’s sole supplier as part of its bankruptcy proceedings.

Nearly three-quarters of the Colstrip Power Plant’s electricity production could grind to a halt, its owners say, if Westmoreland’s potential new owners raise the price of coal from its Rosebud Mine.

Shutting down two of Colstrip’s four boilers would effectively remove 1,480 megawatts of power from the market in the West, which could be damaging to the power grid, said Bud Clinch, executive director of ...