Business

Douglas County PUD approves sale of surplus hydropower to Puget Sound Energy

Douglas County PUD approves sale of surplus hydropower to Puget Sound Energy
(Good Wells NE side)

In an Aug. 19 meeting of the Douglas County Public Utility District, commissioners executed several actions, including approving a power purchase agreement with Puget Sound Energy (PSE) for a slice of surplus hydropower resources.

The PPA with PSE is in place from Jan. 1, 2026, to Dec. 31, 2032. The two power producers have a longstanding business relationship, with PSE extending a hydropower supply contract for about 40 MW of clean energy in June 2021, continuing a partnership with the Confederated Tribes of the Colville Reservation and Douglas County PUD. In that transaction, PSE and the PUD negotiated an extension on a power sales agreement that would provide PSE a 5.5% share of hydroelectric power produced by the 774.3 MW Wells Hydroelectric Project, on the Columbia River, for the next three years.

In addition, the commissioners received the preliminary budgets for the Distribution System, Hydrogen Production and Wells Hydroelectric Project for calendar year 2025.

The Distribution System preliminary budget includes a previously approved 3% increase in kWh charge for the highest two usage tiers of the General Service schedule (over 25,000 kWh). Data centers will see a 5% increase Jan. 1 and cryptocurrency customers a 10% increase Jan. 1 for their rate schedules. Working capital is expected to increase $64.6 million. The preliminary capital budget is $23.9 million, of which $16.7 million is for electrical facilities. The balance of capital spending is for the new connections to the Douglas County Community Network and new equipment.

The Hydrogen Production preliminary budget includes initial startup and operations projections with a capital budget of $3.2 million which includes a refueling station at the production facility.

The Wells Project Revenue Budget estimate is equal to the Operating Expense Budget at $73.6 million. The preliminary Capital Budget totals $60.9 million. Major items include generating unit refurbishment, mobile crane, motor control center replacement, spillway bulkhead maintenance, GSU transformer replacement, and governor controls upgrade.

The Wells hydroelectric project, on the Columbia River in Washington State, is the primary generating resource for Douglas PUD. It began operating in September 1967, and the powerhouse contains 10 turbine-generator units. The project is currently undergoing rehabilitation work.

A pilot renewable hydrogen production facility that features two 5 MW electrolyzers is located near Wells to provide flexibility to operations at Wells. Douglas PUD said generation requests can be sent to the hydrogen electrolyzers to reduce the mechanical adjustments necessary at the Wells project to balance the grid. This will reduce the maintenance necessary on the turbine units and associated equipment.