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Power transmission agreement discussed

Chelan County PUD
News Release
1/9/2006

An agreement detailing how future power purchases by Puget Sound Energy will be transmitted to the Bellevue-based utility was outlined for PUD commissioners Monday.

The transmission agreement was negotiated along with a new 20-year contract with PSE for wholesale power purchases from the PUD’s Rock Island and Rocky Reach dams. Transmission was included in current power sales contracts, which expire in 2011 and 2012.

Steve Fisher, PUD power manager, explained that separating transmission from power sales recognizes that transmission is regulated and allows the PUD to recover all of the costs of delivering the power.

The proposed power sales agreement would allocate to PSE 25 percent of the power output from Rocky Reach and Rock Island dams in exchange for paying 25 percent of the costs, while maintaining local control for Chelan County PUD and providing long-term financial stability.

PUD commissioners have set Jan. 30, 2006, as the date for taking action on the proposed new contract and transmission agreement.

In other business, commissioners:

• Received a preview of issues important to the PUD that may be considered by state legislators in the session that began Monday in Olympia. Andrew Munro, PUD government affairs director, said the tone of this session will be different since the budget outlook is brighter, but that recognition of hydropower as a renewable energy source will be key for Chelan County PUD. It’s possible that a new law spelling out a renewable energy portfolio for state utilities may be considered, or the issue may come up as an initiative. Hydro has not been considered renewable, as is solar and wind power, in previous proposals.
• Heard the first annual report from Internal Auditor Stacey Jagla on the 2005 work of the District’s Audit Committee. Jagla reports to the committee of senior managers and two PUD commissioners formed last year. It meets quarterly and focuses on reviewing compliance, controls, efficiency, effectiveness and economy in District programs and operations. Its work is in addition to audits of the PUD by the state and external auditors.
• Were updated on the PUD’s 20-year support for electrical energy education delivered by the North Central Educational Service District. The unique arrangement with other Mid-Columbia PUDs and the ESD brings electrical safety information to all third- and fourth-graders in Chelan, Douglas, Grant and Okanogan counties, plus other electrical energy programs for elementary and middle school students. Chelan County PUD’s share of the cost is $37,000 a year through the 2007-2008 school year. 

***

PUD commissioners recessed Monday’s meeting to reconvene at 7 p.m. at the Wenatchee Center to hear public comment on the proposed new power sales contract with Puget Sound Energy.

PUD commissioners will hold a special meeting at 9 a.m. on Wednesday, Jan. 11, in the boardroom to discuss the commission’s Balanced Scorecard. That meeting will be recessed and commissioners will reconvene at 7 p.m. at the Cashmere Riverside Center to hear the results of a study of Cashmere’s electric distribution system.

The next regular meeting of the PUD commission is at 1 p.m. Monday, Jan. 16, in the boardroom, 327 N. Wenatchee Ave.

PUD commission meetings are recorded, and a link to the audio is available on the PUD’s home page at http://www.chelanpud.org/.

Kimberlee Craig
Public Information Officer
661-4320, direct line
679-6858, cell
kimc@chelanpud.org