Grant PUD reviews power sales contract

EPHRATA — How to get the biggest economic benefit for the electricity generated by the Grant County PUD – and how much that clean energy is worth – was a topic of discussion at the Nov. 13 meeting of the Grant County PUD commissioners.

The discussion was part of a presentation on a contract selling 10 percent of the PUD’s share of electrical generation from Priest Rapids and Wanapum dams. The new contract would be a three-year renewal of an existing contract.

The PUD retains the right to buy back the power at the same cost if necessary, which helps reduce the possible impact of a low-water year, said Rich Flanigan, senior manager of wholesale marketing and supply. It also reduces the possible impact of an emergency that requires reducing generation, he said.

But that power is valuable, in part because it’s produced through hydro generation, which doesn’t generate carbon emissions. It comes with certifications to that fact, which makes the power worth more money in markets that place a penalty on power that requires carbon generation.

Utility district officials put the contract out for bids for the first time, and got 14 responses, Flanigan said. Some were other utilities, other bidders were on the power market.

Governor Jay Inslee and some members of the Washington Legislature have discussed legislation that would impose penalties on electricity generated through carbon sources in Washington. Commissioner Bob Bernd asked about the PUD’s options under the contract if the legislation passed.

Flanigan said the contract includes provisions that allow the PUD to buy back the non-carbon certification. That will be part of any similar contract that’s signed in the future, he said.

Chief executive officer Kevin Nordt said the contract also includes provisions that allow the PUD to meet its obligations under existing Washington law. Chief operating officer Dave Churchman said the PUD probably wouldn’t be impacted by most of the current carbon-penalty initiatives, but the provisions are in the contracts, just in case.

Cheryl Schweizer can be reached via email at education@columbiabasinherald,com.