PORT TOWNSEND — A nine-year contract between the federal Bonneville Power Administration and Port Townsend Paper Corp. will have a positive economic impact on Jefferson County, the principals say.
The first results of the long-term pact: a $6.8 million project that will improve the mill’s system for receiving the electricity.
“Today, we celebrate the success of providing jobs and building the economy for Jefferson County and many surrounding communities,” said the company’s health and safety manager, Keith Brossard, at Friday’s signing.
The contract, signed at a ceremony at the Northwest Maritime Center, is an amendment to an existing electricity sales contract that will be in place for nine years after the current pact expires Aug. 31, 2013.
20.5 megawatts
Brossard said the contract for 20.5 megawatts is equivalent to half of all the power used by residences and businesses in Jefferson County.
Port Townsend Paper President Roger Loney said the company has recently extended the contract with the federal power wholesaler for only one year at a time and that the longer agreement will facilitate the mill’s growth.
“With a long-term contract, you can do things a little differently,” Loney said.
“The signing of this contract provides a platform for additional growth.”
“We are also announcing an additional capital investment in the mill of $6.8 million, the largest portion of which will go toward new electrical transformers for the incoming power that BPA supplies.”
Jefferson PUD
The Jefferson County Public Utility District, which will take over East Jefferson County’s electricity system April 1, is contracted to supply 8.5 megawatts of the 20.5 megawatts needed by the mill, according to PUD Commissioner Barney Burke.
Representatives of Rep. Norm Dicks and Sen. Patty Murray addressed the 50 people who gathered to watch the signing between Loney and BPA Administrator Steve Wright.
“This represents a huge step forward in stability and opportunity for the hundreds of employees of the mill,” Murray, D-Bothell, said in a statement read by her aide, Alexandra Fastle.
“It provides family-wage jobs and cements Port Townsend Paper’s role in the community for many years to come.”
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or at charlie.bermant@peninsuladailynews.com.
