Grant PUD takes position on I-937

Voter approval could increase rates

EPHRATA — If voters pass Washington Initiative 937 in November, customers of Grant County Public Utility District are likely to see a rate increase.

"There is no doubt it's going to put upward pressure on rates," Tim Culbertson, the utility district's general manager, said Monday at the board of commissioners' weekly meeting.

"The public needs to understand that if this initiative passes, as written, it's going to raise our rates," said PUD Commissioner Greg Hansen.

The ballot initiative aims to have the 17 largest electric utilities in Washington ramp-up the amount of new renewable resources in their power supply to 15 percent by 2020. Utilities would be fined if they fail. They must also set and meet energy conservation targets by 2010.

Only utilities with at least 25,000 customers — including Grant County PUD with its 41,722 ratepayers — would be impacted if the initiative passes.

The proposal focuses on increasing the use of wind power, solar energy, biomass and other renewable resources.

Hydropower facilities built prior to 1999, like Priest Rapids and Wanapum dams, wouldn't qualify as renewable resources, according to the initiative.

Efficiency upgrades to hydropower projects since 1999, such as the ongoing turbine replacements at Wanapum Dam, would qualify.

Chris McCullough, a spokesman for the I-937 campaign, said Grant County PUD is likely to meet the entire 15 percent requirement through efficiency upgrades.

Sarah Morford, a spokeswoman for Grant County PUD, agreed.

"From everything I've understood, we do believe that's going to happen," Morford said.

McCullough said hydropower is a "maxed-out" resource, and no new dams are expected to be built.

"That means we have a choice to meet our growing demand for electricity — we can burn fossil fuels like coal that pollute our air, or we can pass I-937 and choose a new generation of cheaper, cleaner energy sources," McCullough said.

The public utility districts of Franklin and Benton county oppose the initiative.

Last week, Avista Corp. urged voters to reject the initiative.

"Renewable resources are an important part of our energy future," said Scott Morris, president of Avista Utilities. "But I-937 is the wrong approach to energy resource planning."

The Washington Public Utility District Association supports I-937, said Steve Johnson, the organization's executive director.

Tom Flint, a Grant County PUD commissioner, pushed the district Monday to take a position on the initiative.

"Part of our job is to inform the ratepayers of things that potentially affect the utility, and the initiative has the potential to affect it in a very negative way," Flint said, following the meeting. "To be forced to do something that makes no economic sense is not right. It's a travesty."

Next week, Culbertson is releasing a statement addressing the commission's position on the initiative.

In that statement, Grant County PUD warns ratepayers about likely rate increases, Culbertson said.

The commission statement also argues that 100 percent of hydropower should be considered renewable, he said.

"All hydro is renewable, it's ridiculous," he said.

At a minimum, Culbertson said, hydropower used to "firm," or back-up, other green sources of energy should be considered renewable.

"Windmills only operate when the wind blows," said Gary Garnant, a spokesman for Grant County PUD. "In order to make it reliable, you have to firm it up with another power-generating source, usually hydropower."