PUD approves $253 million bonds sale

COLUMBIA BASIN — The Grant County Public Utility District is selling $253 million in bonds for improvements to two dams on the Columbia River.

The PUD Board of Commissioners unanimously approved the sale of $186.4 million in bonds for the Wanapum Hydroelectric Development and $66.6 million in bonds to the Priest Rapids Hydroelectric Development Thursday. Bond Counsel for the PUD Nancy Neraas said the PUD expects to have the money in hand by Tuesday.

"It's really exciting to see the fruits of our labor come together," PUD Commissioner Tom Flint said.

Wanapum and Priest Rapids dams are part of a seven-dam hydroelectric system located on the mid-Columbia River.

The PUD is replacing 10 turbines at Wanapum Dam, with an expected completion date of 2012. Two turbines are replaced so far. The PUD has said the advanced design increases power generation by 14 percent and the efficiency of water use by 3 percent. The survival rate for fish is nearly 98 percent.

A downstream bypass system for fish at Wanapum Dam and rehabilitation of the hatchery at Priest Rapids Dam is included in the bonds sale. Bonds for both hydroelectric systems include powerhouse improvements, building and property improvements, new computer software and improvements to communication and control systems.

Rates are unlikely to increase for residents as a result of the bonds sale, said PUD Vice President Greg Hansen.

"It shouldn't," Hansen said. "We've projected ahead and we should not have a rate increase at least until 2012."

About $33.4 million of the new bonds went to refund old bonds.