PORT ANGELES — Should the Clallam County Public Utility District be required to purchase expensive renewable energy if it doesn’t need more electricity to serve its customers?
Its elected commissioners last week said no.
By a 3-0 vote, the commission Aug. 8 passed a resolution in support of state House Bill 2124 and Senate Bill 5964.
Each bill “eliminates the requirement for utilities to purchase unneeded electricity, renewable energy credits or electric-generating facilities that are not needed to serve their customers’ loads.”
State Sen. Janea Holmquist Newbry, R-Moses Lake, and state Rep. Terry Nealey, R-Dayton, introduced the legislation May 25.
The bills will be considered after the state Legislature reconvenes in January.
Mandate
The renewable-energy requirement is a mandate of the Washington Energy Independence Act, which 52 percent of state voters approved in 2006 as Initiative 937.
The bills would amend state law so the Clallam County PUD and other utilities would not have to buy more expensive renewable energy if customer loads remain stable.
“The challenge with this is that the act excludes existing hydropower, which is a very clean and renewable source of power,” said Doug Nass, PUD general manager.
“Additionally, if we experience minimal load growth, as we are in this economy, we are then required to replace that very affordable clean power with power that is three to four times more costly — even if we don’t need the power.”
The Bonneville Power Administration is the primary electrical power supplier for the Clallam County Public Utility District and the city of Port Angeles.
BPA gets hydropower from large dams in the Columbia River basin.
The Washington Energy Independence Act requires utilities with 25,000 customers or more, such as the Clallam County PUD, to acquire and supply to their customers 3 percent of the utility’s power from renewable energy by 2012.
That requirement goes up to 9 percent by 2016 and 15 percent by 2020.
Clallam County PUD spokesman Michael Howe said two or three other PUDs in the state have already supported the bills, and others are thinking about it.
The legislation does not affect the city of Port Angeles or Jefferson County PUD, which does not provide electricity in East Jefferson County now but plans to do so in the future.
“The state requirements for renewable portfolio standards do not apply to the Port Angeles utility because of our utility’s size,” said Port Angeles Deputy Director of Power Systems Larry Dunbar.
“Since we have less than 25,000 customers, the standards that apply to the PUD do not apply to the city.”
Not affected
Likewise, Jefferson County PUD is not affected by I-937.
“I don’t recall that we’ve taken a position on that recommendation for the changes to 937,” said Jefferson County PUD Commissioner Barney Burke.
“That’s not been on our agenda.”
Meanwhile, Bonneville announced July 26 that it would raise wholesale electric prices to public utilities by 7.8 percent Oct. 1.
PUD officials said they will develop proposals for an electric rate increase in the coming months, with a formal decision expected in the fall.
The resolution signed by PUD Commissioners Ted Simpson, Will Purser and Hugh Haffner says the Energy Independence Act “interferes with the ability of local, elected utility commissioners to govern the utility in the best interests of its customers.”
It also says the PUD has promoted conservation since the 1980s and continues to do so voluntarily.
Nass said the legislation supported by the resolution doesn’t change the intent of I-937. He said it “simply allows for greater local control and adapts to the current economic climate where load growth is very slow and our customers struggle to make ends meet.”
“It really doesn’t make much sense to purchase power that is three to four times more expensive than the clean, renewable hydropower we have now if we don’t need it,” Nass said.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com
