Large Loads

Large loads are customers that use a lot of electricity. Examples include data centers, manufacturers, and industrial facilities.

Chelan PUD evaluates new requests for large amounts of power using the same guiding principles:

• Keep rates stable for existing customers.
• Maintain reliable electric service.
• Preserve local control of our power resources.
• Treat all requests consistently and comparably.
• Protect existing management of hydropower through a wholesale energy marketing strategy.

This ensures that costs are fully recovered and we protect existing customers from impacts associated with serving that data center. We’ve set it up so our clean, low-cost hydropower stays focused on serving the community first.

In most cases, electricity to serve data centers will come from the wholesale energy market. That power can come from anywhere connected to the regional transmission system, including western states and parts of Canada.

If there’s an opportunity, Chelan PUD may sell surplus hydropower through a negotiated contract if it fits within the PUD's existing energy strategy. Negotiated energy contracts are subject to approval by Chelan PUD’s board of commissioners.

Chelan PUD will not serve electricity to data centers unless the power they need is secured and paid for. Chelan PUD is not required to provide local hydropower if market power is unavailable.

Large-load customers pay for the studies, equipment, and system upgrades needed to connect to Chelan PUD's electric system.

Sometimes an upgrade benefits both the large-load customer and existing customers. In those cases, Chelan PUD may share part of the cost. For example, if a new transmission line provides extra capacity that benefits the community, Chelan PUD may contribute.

No. Chelan PUD's policies are designed so that large-load customers pay the costs associated with serving them. Existing customers should not subsidize data centers.

Not at this time. A moratorium is a temporary pause that gives the utility time to study a new issue and develop policies. For example, Chelan PUD used a moratorium during the cryptocurrency boom in 2018. During that time, the PUD gathered public input and developed rates designed to protect existing customers.

Today, Chelan PUD already has policies and rates in place for large-load customers, including data centers. Those policies were developed to protect reliability and keep costs from shifting to existing customers.

Chelan PUD's role is not to decide whether a project should be built, but to provide electric service in a way that protects existing customers. Chelan PUD evaluates each request using established policies, engineering requirements, and rate structures. Projects must meet those requirements before receiving service.

Land use decisions, zoning, environmental reviews, and permits are handled by local governments through public processes. When a project requests electric service, Chelan PUD evaluates how it will affect the power system and works to provide service responsibly and sustainably.