The sudden closure of a coal mine in rural southwest Washington this week struck a blow to the area's economy and raised questions about the region's power supply just as a new emphasis on renewable energy begins to take hold.
Calgary-based energy company TransAlta blamed the closure of its 30-year-old Centralia mine on rising safety costs and regulatory delays that prevented expansion. The closure means the loss of about 600 jobs that paid an average of $65,000, according to The Associated Press. The area, located midway between Seattle and Portland, has already been hard hit by the long decline in the timber industry. Now officials estimate the lost taxes will cost up to 30 percent of the area's school budget.
The closure late Monday is another sign of Cascadia's transition from an oil and hydro-fueled economy where industry and consumers counted on inexpensive energy. Earlier this month Washington voters mandated that utilities source 15 percent of their electricity from new renewable sources by 2020. While backers of the measure predict a flood of investment into new energy industry, the measure itself didn't consider siting, regulatory or cost issues.
TransAlta's mine reportedly accounts for about 8 percent of Washington's electricity, which the company said it would replace by bringing coal by train from the Powder River basin of Wyoming to an electric plant it plans to continue operating in Centralia. Apparently high supher and mercury readings in the Washington mine added to costs. Still unanswered questions include how the trains will get there, considering existing freight bottlenecks, and how costly the shift will be for regional business.
Local officials were surprised by the closure because the mine had political connections. A Republican leader of the Washington legislature helped push through a tax break for TransAlta in 2004 while he worked for the company and chaired the state House's energy committee. At the time he told the Seattle Post-Intelligencer the deal would keep the company sourcing its coal nearby.
In the wake of this week's announcement, area politicians scrambled to make plans to compensate. TransAlta said it set aside C$5 million to cover retraining expenses and the congressman who represents the area pledged to work for economic development programs. A local paper quoted an economist who noted that the air around Centralia would likely now be cleaner.
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