Chelan PUD and Puget Sound Energy sign hydropower supply contract

February 13, 2023 at 09:26 AM EST

The 20-year contract provides PSE with 25% of the output from the PUD’s 624 MW Rock Island and 1,236.6 MW Rocky Reach hydropower projects from 2031 to 2051.

Puget Sound Energy (PSE) and Chelan County Public Utility District (PUD) have executed a contract for hydropower from the PUD’s two projects on the Columbia River, Rock Island and Rocky Reach.

The 20-year contract provides PSE with 25% of the output from the PUD’s 624 MW Rock Island and 1,236.6 MW Rocky Reach hydropower projects from 2031 to 2051. The new contract increases PSE’s carbon-free resources toward its future renewable energy goals, as well as contributes flexible capacity to identified needs in Washington, according to a release.

PSE’s current contracts with Chelan PUD, expiring in 2026 and 2031, provide a portion of the output from the two Columbia River projects.

“We have 70 years of partnership selling a share of our hydropower output to Puget Sound Energy,” said PUD General Manager Kirk Hudson. “Along the way, these energy contracts become even better for our customer-owners by recognizing the increasing value of hydropower, while providing financial stability and predictability.”

Chelan PUD offers a mix of short-term market-based and long-term cost-based products. Both types of contracts are based on selling a “slice” of Chelan’s hydropower output. The value of hydropower has increased as a carbon-free renewable source of energy. Those environmental attributes are in demand as companies look to satisfy new regulatory requirements through the Climate Commitment Act and Clean Energy Transformation Act, Chelan PUD said.

“We are pleased to continue our partnership with Chelan PUD to provide clean, reliable and affordable hydropower to our customers,” said Ron Roberts, PSE’s vice president of energy supply. “It’s another important step on our way to serving customers with 100% carbon neutral resources by 2030 and 100% clean electricity by 2045. In addition to clean energy and capacity, PSE’s 25% share will continue to provide a reliable source of resource adequacy and the ability to integrate renewable resources for our customers.”

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The contract includes both carbon-free energy attributes provided by hydropower as well as flexible capacity to help PSE meet peak energy needs during high customer usage times.

Chelan PUD is governed by a locally elected five-member Board of Commissioners. The general manager uses the policies and guiding principles set by the commission to generate and deliver electricity from its three hydroelectric projects to utilities that serve customers across the Pacific Northwest as well as to more than 51,000 retail customers in the county.

PSE serves 10 Washington counties and is the state’s largest utility, supporting about 1.2 million electric customers and 900,000 natural gas customers. PSE aspires to be a beyond net zero carbon energy company by 2045.

Originally published by Hydro Review

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Chelan PUD and Puget Sound Energy sign hydropower supply contract