Grant County PUD's power auction brings $39 million to utility

EPHRATA - Grant County PUD's recent power sales auction brought nearly $39 million to the utility, which is 12 percent of the power produced annually at Priest Rapids Dam.

The auction provides more money to the utility so it doesn't have to raise rates or look elsewhere for more funds, said Michiko Sell, a senior resource analyst with the utility.

The auction is not the sole driver in meeting those needs or setting rates, she added.

The utility already "keeps the lights on through a combination of power supplied from its own resources and power purchased from the open market," Sell states.

The auction has attracted a good response from other groups wanting power and was believed to be unique when it was first held three years ago, she said.

The utility says it thought of the auction after the Federal Energy Regulatory Commission required that a "reasonable portion" of power be offered for sale to other groups.

This year's highest bidder, the Butte, Mont,-based Highland Energy LLC, submitted the winning bid against 12 other groups. Highland is an energy trading and marketing company, which will receive about 62 megawatts of power next year.

The lowest bid was $16.2 million. The utility declined to disclose the lowest bidder.

Grant County PUD can also use the auction money to buy power on the open market to meet local power needs, Sell said.

"We need this auction to be successful," she said. "We need the valuation of our power to be at least what the market is showing (if the utility buys power on the open market)," she said.