Joint Release
BONNEVILLE POWER ADMINISTRATION
FOR IMMEDIATE RELEASE:
Monday, December 19, 2005
Contact:
Ed Mosey |
, BPA (503)-230-5131
Mick Shutt, 360-992-3238
Clark Public Utilities and the Bonneville Power Administration reach agreement
Vancouver, Wash. -
Joint release: Clark Public Utilities and The Bonneville Power Administration
Clark Public Utilities and the Bonneville Power Administration have tentatively reached a settlement of BPA's payment obligation to Clark Public Utilities under the Residential Exchange Program for a payment of $15 million in benefits. Clark Public Utilities and BPA have also agreed that Clark will return to BPA's control area, and will enter into a new power supply contract with BPA through 2011.
Taken together, these transactions will result in minimal cost impacts to BPA's customers.
"In view of the great importance of keeping our rates down," said Paul Norman of BPA, "this is a good arrangement because it allows us to meet our legal obligation to provide residential exchange benefits to Clark with a minimal impact on our 2007-9 rates."
Clark Public Utilities Commissioner Byron Hanke said he was very pleased with the proposal, and complimented Bonneville on finding a creative solution to the issue. "Our customer-owners will benefit from this arrangement for many years."
Before finalizing the agreement, BPA will seek public comment on the proposal. Comments can be submitted to www.bpa.gov/comments. The deadline for comments is January 16, 2006.
BACKGROUND
The new arrangement follows Clark's request to receive benefits under BPA's legally-mandated Residential Exchange program, which allows utilities to receive a payment to help offset costs of power they produce or purchase from other sources to serve their residential and small farm customers.
The purpose of the provision in the federal law was to help equalize power costs for residential customers throughout the region. Clark qualifies for benefits due to the present high cost of natural gas, which is used to generate electricity at the utility's River Road Generating Plant.
The plant provides about half of the power the utility sells to its customers. The balance is purchased from BPA. When completed in 1997 River Road produced low-cost power. Those costs have risen as natural gas prices have soared in recent years.
Clark Public Utilities is a customer-owned public utility district that provides electric service to more than 172,000 customers throughout Clark County. The utility also provides water service to nearly 29,000 homes and businesses in the Hazel Dell, Salmon Creek, Lakeshore, Hockinson, Brush Prairie, La Center, Meadow Glade, Amboy and Yacolt areas and provides wastewater service to about 900 customers in La Center.
Submitted for distribution on 12-19-2005 at 3:51 PM
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