Business & Finance

Chelan PUD and Avista announce long-term hydropower contract

Chelan PUD and Avista announce long-term hydropower contract

Avista and Chelan County Public Utility District (PUD) have finalized a contract for renewable hydropower from the PUD’s 624 MW Rock Island and 1,236.6 MW Rocky Reach projects on the Columbia River in the U.S.

The 20-year contract increases Avista’s carbon-free resources toward its 2030 renewable energy goals, as well as contributes flexible capacity to identified needs in Washington and Idaho, according to a release. The acquisition closes out Avista’s 2020 Renewable Request for Proposals.

The competitively priced contract provides Avista with 5% of the output from the PUD’s two hydropower projects from 2026 through 2030 and then increases to 10% of the output from these projects in 2031 to 2045.

“We see great value in this partnership with Avista as it delivers more clean, renewable, reliable hydropower to customers in the Pacific Northwest,” said PUD General Manager Steve Wright. “Increasing commitment to decarbonizing the electric sector, particularly in the western U.S., is increasing the value of hydropower. This contract increases PUD wholesale revenues that supports low customer-owner rates and amenities like broadband services and our parks.”

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

“We are pleased to continue our partnership with Chelan PUD to provide more clean, reliable and affordable hydropower to our customers,” said Jason Thackston, Avista’s senior vice president of energy resources. “It’s another important step on our way to serving customers with 100% clean electricity by 2045 and 100% carbon neutral resources by 2027.”

Chelan PUD delivers electricity from three hydropower facilities to utilities that serve customers across the Pacific Northwest as well as to more than 51,000 retail customers in the county. The PUD also provides water, sewer and wholesale telecommunications services.

Avista is involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities provides electric service to 403,000 customers and natural gas to 369,000 customers in eastern Washington, northern Idaho and parts of southern and eastern Oregon. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 17,000 customers in the city and borough of Juneau, Alaska.