PUD lining up power for 2012

Wahkiakum PUD Commissioners were asked to gaze into their crystal balls this past Tuesday to determine what the county’s power needs will be by 2012.

PUD Manager David Tramblie told commissioners the county’s 20-year contract with the Bonneville Power Administration (BPA) is subject to change because of the way the BPA plans allocate electricity by October 2011.

“They will be implementing what they call ‘Tier Rates’ and we need to decide soon on which of the options we want to choose,” said Tramblie.

The new BPA rate structure will be a two-tiered system.

-- Tier-1 electricity is based on the cost of the BPA’s existing resources, or, how much power Wahkiakum is already allocated to service its customers.

-- Tier 2 will be the amount of electricity needed to serve Wahkiakum County above its yearly average allocation, a little over 5-megawatts.

The new BPA contract does not require Wahkiakum PUD to purchase Tier-2 energy until the PUD’s loads exceed 6.1 megawatts, or approximately one megawatt over the county’s Tier-1 average allocation of 5.11-megawatts.

The commissioners were also informed that, should they not choose from one of the BPA’s structured plans, the PUD could be forced to pay rates on the open market.

“The Wahkiakum PUD must choose an energy provider for resources deemed above our tier-1 allocation,” said Tramblie.

The commissioners were given a list of alternative electricity providers and chose to stay with Bonneville. They also moved to adopt the BPA’s Load Growth Rate structure, which allows the county to lock in the cost of power for longer periods of time.

In other business, the commissioners moved to adopt Resolution 1126. The amendment restored a 2 percent increase in the utility’s Administrative Salary Policy, making it retroactive to January 1, 2009.