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REC Silicon requests power contract

by Lynne Lynch<br> Herald Staff Writer
| February 17, 2011 5:00 AM

EPHRATA - REC Silicon asked for a power sales contract from

Grant County PUD to satisfy European investors.

Grant PUD General Manager Tim Culbertson said during a recent

meeting he was looking for direction on the matter.

EPHRATA - REC Silicon asked for a power sales contract from Grant County PUD to satisfy European investors.

Grant PUD General Manager Tim Culbertson said during a recent meeting he was looking for direction on the matter.

No decisions were made, but discussion followed.

After the meeting, commission President Randy Allred said he's hoping to work through changes to industrial rates before revisiting the matter.

He said the commission was split 50/50 on the issue.

The company asked for the contract to guarantee the power delivery and because their European investors desired a contract, Allred said.

During the meeting, Commissioner Tom Flint said they first needed information on a power cost adjustment and wanted to put off a decision.

Allred said the district was not obligated to serve an unlimited amount of power.

Bernd said he didn't see a down side for the district.

Commissioner Terry Brewer said the district still has the right to change its customer service policy and rates.

District attorney Mitch Delabarre said he put into contract form what services the PUD is providing REC Silicon, which entails providing power according to the rate schedule.

Nothing in the draft contract overrides or supersedes district policy, he said.

Delabarre said he supported delaying action if the commission plans industrial rate changes.

Flint said he remembered when Advanced Silicon went off line and allegedly left the PUD without the use of purchased power.

He added the PUD needs protection.

Brewer said he's spoken about having contracts for large industrial customers for four years, but no other commissioners wanted contracts.

One contract issue is the perception about "sweetheart deals" between some customers and the district, Culbertson said.

On Jan. 18, the district released a column, signed by all five commissioners, explaining the PUD does not have contracts or "sweetheart deals" with industrial customers.

Commissioner Dale Walker said his biggest concern is protecting district customers.

The PUD needs to take a long-term look with industrial users, especially when the district runs out of power and has to buy it elsewhere, he said.

No REC Silicon representatives were at Monday's meeting.

The Columbia Basin Herald was unable to contact REC Silicon representatives for comment by press time.