PUD commission considers joining WPUDA project

EPHRATA — The Grant County Public Utility District commission decides Monday whether to contribute money to the Washington Public Utility District Association's $4.2 million building project in Olympia.

The association, which represents 28 member PUDs and Energy Northwest, is building a 12,000 square-foot office. The two-story building serves as the headquarters for the association, which currently rents office space in Seattle and Olympia to house its staff.

The association plans to occupy the second-floor suite, while renters fill much of the first floor, said association spokesman Dean Boyer.

The association represents PUDs in legislative and policy processes from the state to the federal level, Boyer said.

Although Grant PUD paid money toward the purchase of the land, the utility is the only member PUD not currently paying construction costs.

A vote on the issue is scheduled for Monday during the commission's regular meeting in Ephrata.

Payment totals for member PUDs are based on their percentage of regular dues paid to the association. Grant PUD is one of five utilities to pay the maximum amount, or about 9 percent of the building costs.

The commission could approve one of at least three different payment options, including making a lump sum payment of $360,195, said PUD spokeswoman Dorothy Harris.

The district may also opt to make three payments of $120,065, during the next three years, Harris said.

It's most likely the commission may decide to make a double payment of $240,130, this year, and pay $120,065 in 2008. This option allows Grant PUD to catch up with the other member PUDs, which began making payments for the building project in 2006.

The commission is also deciding whether to commit an additional $31,500, to make the building more energy efficient.

Even though Grant PUD has not given money to the building project, REC Silicon, in Moses Lake, did make a donation, said Steve Johnson, the association's executive director.

REC Silicon already donated approximately 140 solar panels to the building project, enough to produce 40 percent of the building's electrical needs, Johnson said. The building has a four-sided roof and the solar panels cover most of three sides, he said.

"There's going to be a lot of positive publicity around the building and I'm sure that REC (Silicon) wants to be a part of that," Johnson said.

The building is going to be the first in the state to receive the U.S. Green Building Council's highest rating, platinum certification, meaning it meets exceptional energy standards, Johnson said.

Construction of the building, which sits a few city blocks from the Capital Campus, is scheduled to be complete Sept. 1. A dedication ceremony is scheduled for Oct. 17.

"Grant PUD is an important PUD, they've always been a member of the association, they're a leader in the industry, they're one of the biggest hydroelectric generators in the whole Northwest," Johnson said. "I'm delighted that they're seriously considering participating in the building."

Last year, the commission majority opted out of the project.

Commission President Randy Allred, who only votes to break ties, anticipates the board's approval of the payments this year. He supports the decision of the majority and hopes a contribution to the project benefits the PUD.

Allred expects the association to seriously increase the amount of time they devote to working on hydropower-related issues.

If he were to vote, Allred said he'd probably vote against a contribution.

"I'm hung up on the fact there's not enough of a paper trail to cover, in my opinion, the public's money being spent on (the building). There's not enough security protecting Grant PUD down the road," Allred said. "Obviously other PUDs don't seem to believe there's a problem, they've been contributing."

A payment by Grant PUD doesn't result in the utility, its ratepayers, acquiring ownership interest in the association's new building. If the association sells the building, Grant PUD gets nothing.

The PUD did attempt to get a contract with the association, specifying the district would have rights to the building, proportionate to any payment made. But the association refused contracts, leaving Allred reluctant to sign on.

Commissioner Tom Flint, who represents Grant PUD at the association's meetings, said hydropower-related issues are going to be at the forefront of the association's future agenda.

It's crucial for Grant PUD to be a participating member of the association, Flint said, to build alliances and work together with other PUDs on political issues.

Making the payment, Flint said, ensures Grant PUD is considered a team player by the other PUDs.

"We have a huge target on our back," Flint said. "A lot of people are very envious of the project we have. To think that we can protect that by ourselves is a fantasy."