Learning Center

Chelan County PUD’s investments in energy efficiency improvements and environmental programs have incrementally increased hydropower energy production.  The environmental programs provide some of the highest levels of protection for salmon on the Columbia River through a multi-agency Habitat Conservation Plan. Chelan County PUD’s balanced approach to protecting fish and increasing hydropower production is a positive contribution to the complex issue of greenhouse gas reductions.

Chelan County PUD is always considering options and opportunities that bring value to our customer-owners and support the mission of the PUD.  One forum the PUD has recently investigated is the Chicago Climate Exchange (CCX), which is an emissions allowance trading system.  Its members represent all sectors of the economy, including electric generation.  The members make a voluntary but legally binding commitment to meet annual greenhouse gas emission reduction targets.  Member companies can meet these targets by reducing their own emissions or by getting other members to reduce their emissions (called offset providers).

Through the offset program, members can invest in emission reduction projects (e.g. gas sequestration) or clean renewable energy projects (e.g. hydro, wind, solar).  In other words, they can support programs developed and implemented by others that “offset” their own greenhouse gas emissions.  CCX enables these offsets to be tradable, so that companies that emit greenhouse gases are able to find and purchase offsets to greenhouse gases.  The CCX brings buyers and sellers together; it also helps ensure that emissions offsets offered for sale are verifiable.

Chelan PUD submitted a proposal to CCX to be considered as a participating member or “offset provider” and was approved in August, pending a verification report.  This means that Chelan PUD can provide offsets based on its clean renewable hydropower for purchase by companies interested in reducing their carbon footprint. 

Hydropower can be considered a verifiable offset because the PUD is generating  incremental power, over a predetermined baseline starting in 1999, while still meeting all regulatory obligations.  The incremental power comes from two sources 1) equipment efficiency improvements such as those achieved from project modernization; and 2) operational efficiency improvements such as reduced spill due to use of the fish bypass system at Rocky Reach Dam.  These kinds of operational efficiency improvements are outlined in Chelan PUD’s Habitat Conservation Plans, provided that Chelan PUD maintains survival standards for anadromous salmon and steelhead.

Chelan PUD’s proposal was approved by the CCX on August 21, 2007.   Now, Chelan PUD has joined CCX as a participating member.  Any funds generated will be used to support and enhance Chelan PUD’s environmental, conservation and system efficiency improvement programs, all of which work to reduce the regions reliance on greenhouse- gas-emitting power sources.