One comment made about PUD settlement
Tribe seeks up to $200 million in power
EPHRATA — Grant County Public Utility District commissioners continued discussion of a proposed settlement agreement with the Yakama Nation and accepted public comment on the issue at Tuesday's meeting.
Former PUD commissioner Mike Conley offered the only public input, saying he favored settling with the Yakamas.
Conley, who served 12 years and was unseated in 2004 by PUD Commissioner Greg Hansen, said the PUD's long-standing relationship with the Wanapum must not be negatively impacted.
Philip Olney, Yakama general council chairman, assured the commission and Conley Tuesday the Wanapums fully support the settlement and would not be impacted.
"We darn sure aren't going to leave (the Wanapum) out," Olney said.
The settlement would help the Yakamas meet power needs of consumers on the Yakama Reservation, resolve remaining fish and wildlife issues between the two parties and lay out a process for joint development of new generating resources, according to PUD officials.
The Yakamas and the tribe's newly-formed public utility, Yakama Power, would become Priest Rapids Hydroelectric Project power purchasers.
From 2007 to 2015, the PUD would market the power on behalf of the Yakamas.
The power allocation from the PUD to the Yakamas would be on average 20 megawatts (aMW) through 2009. It would decline to 15 aMW from 2010 through 2015, dropping to 10 aMW in 2016 through the remainder of the agreement.
PUD General Manager Tim Culbertson estimated the value of the power allocation to be between $135 and $200 million.
If approved, the settlement extends throughout the term of the new Priest Rapids Project license issued by the Federal Energy Regulatory Commission.
The original, 50-year license to operate the Priest Rapids Project, which includes Priest Rapids and Wanapum dams, expired in October 2005. The PUD hopes to be issued a 50-year renewal from FERC this year.
The Yakamas, in March 2002, filed a complaint with FERC challenging power-sales contracts the PUD executed in 2001, with existing power purchasers. FERC dismissed the complaint, in November 2002, so the Yakamas appealed the dismissal to the 9th U.S. Circuit Court of Appeals.
In exchange for the power allocation, or its financial equivalent, the Yakamas promise to withdraw the appeal in federal court. The withdrawal is a key purpose of the settlement.
The PUD is promised rights to 75 percent of the renewable energy credits for the first 75 aMW of any renewable generation project developed by the Yakamas. The PUD also gets right of first refusal to jointly develop new generation projects to help meet the utility's load growth.
Hansen is the lone commissioner opposing the settlement, arguing the PUD must first set a limit on what it's going to pay through the settlement to the Yakamas. The PUD must not pay more than the present value of perceived benefits, he said.
"The estimated $135 to $200 million value of the power allocation doesn't include the fact that market prices of power are certainly going to increase many times during the term of the next license, which is likely to be 50 years," Hansen said. "You need to balance that against the only firm benefit to the PUD, the dismissal of the Yakamas' appeal. The renewable resources the PUD is being promised may never even materialize."
The commission is scheduled to again accept public comment on the settlement during their June 4 meeting. They are also scheduled to vote during the meeting.
One comment made about PUD settlement
Tribe seeks up to $200 million in power
By David Cole
Herald staff writer
EPHRATA — Grant County Public Utility District commissioners continued discussion of a proposed settlement agreement with the Yakama Nation and accepted public comment on the issue at Tuesday's meeting.
Former PUD commissioner Mike Conley offered the only public input, saying he favored settling with the Yakamas.
Conley, who served 12 years and was unseated in 2004 by PUD Commissioner Greg Hansen, said the PUD's long-standing relationship with the Wanapum must not be negatively impacted.
Philip Olney, Yakama general council chairman, assured the commission and Conley Tuesday the Wanapums fully support the settlement and would not be impacted.
"We darn sure aren't going to leave (the Wanapum) out," Olney said.
The settlement would help the Yakamas meet power needs of consumers on the Yakama Reservation, resolve remaining fish and wildlife issues between the two parties and lay out a process for joint development of new generating resources, according to PUD officials.
The Yakamas and the tribe's newly-formed public utility, Yakama Power, would become Priest Rapids Hydroelectric Project power purchasers.
From 2007 to 2015, the PUD would market the power on behalf of the Yakamas.
The power allocation from the PUD to the Yakamas would be on average 20 megawatts (aMW) through 2009. It would decline to 15 aMW from 2010 through 2015, dropping to 10 aMW in 2016 through the remainder of the agreement.
PUD General Manager Tim Culbertson estimated the value of the power allocation to be between $135 and $200 million.
If approved, the settlement extends throughout the term of the new Priest Rapids Project license issued by the Federal Energy Regulatory Commission.
The original, 50-year license to operate the Priest Rapids Project, which includes Priest Rapids and Wanapum dams, expired in October 2005. The PUD hopes to be issued a 50-year renewal from FERC this year.
The Yakamas, in March 2002, filed a complaint with FERC challenging power-sales contracts the PUD executed in 2001, with existing power purchasers. FERC dismissed the complaint, in November 2002, so the Yakamas appealed the dismissal to the 9th U.S. Circuit Court of Appeals.
In exchange for the power allocation, or its financial equivalent, the Yakamas promise to withdraw the appeal in federal court. The withdrawal is a key purpose of the settlement.
The PUD is promised rights to 75 percent of the renewable energy credits for the first 75 aMW of any renewable generation project developed by the Yakamas. The PUD also gets right of first refusal to jointly develop new generation projects to help meet the utility's load growth.
Hansen is the lone commissioner opposing the settlement, arguing the PUD must first set a limit on what it's going to pay through the settlement to the Yakamas. The PUD must not pay more than the present value of perceived benefits, he said.
"The estimated $135 to $200 million value of the power allocation doesn't include the fact that market prices of power are certainly going to increase many times during the term of the next license, which is likely to be 50 years," Hansen said. "You need to balance that against the only firm benefit to the PUD, the dismissal of the Yakamas' appeal. The renewable resources the PUD is being promised may never even materialize."
The commission is scheduled to again accept public comment on the settlement during their June 4 meeting. They are also scheduled to vote during the meeting.