Notices
November 22, 2011
NOTICE FOR PUBLIC COMMENTS
It is hereby noticed that Public Utility District No. 1 of Lewis County will take public comments on the draft final Conservation Potential Assessment (CPA). Copies of the CPA can be obtained here (CPA 2012) or at the District’s Chehalis Office. Comments may be provided by submitting written comments to the District at PO Box 330, Chehalis, WA 98532, by emailing Stacy Davis, Executive Assistant at stacy@lcpud.org or by making oral comments during the District’s regularly scheduled Commission Meetings at 10:00 a.m. on December 5, 2011 at the District’s Morton Office located at 240 7th Street, Morton, WA or on December 12, 19, 27, 2011 at the District Chehalis Office located at 321 NW Pacific Ave, Chehalis, WA.
October 12, 2011
PRESS RELEASE
FOR IMMEDIATE RELEASE
Lewis PUD Commission supports House Bill 2124 and Senate Bill 5964
(Chehalis, WA) September 27, 2011 The Lewis PUD Commissioners passed a resolution of
support at their regularly scheduled Commission meeting on September 6th for two legislative
bills introduced at the end of the 2011 Washington State Legislative session.
House Bill 2124 and Senate Bill 5964 were introduced to revise the Energy Independence Act
(EIA) by clarifying that if a utility has excess energy under current contracts, then the utility has
the option to choose not to buy unneeded energy or renewable energy credits as required by
the EIA. As a utility grows and needs to add energy to meet growing customer needs, the new
resources must meet the EIA requirements.
The EIA was the result of Initiative 937 approved by voters in 2006 with the intent to increase
energy conservation and renewable energy resources. It requires an electric utility with 25,000
or more customers to use eligible renewable resources to meet a portion of its load (3% in 2012,
9% in 2016, and 15% in 2020) and to acquire all cost effective conservation starting in 2010.
Initiative 937 failed in Adams, Asotin, Benton, Chelan, Columbia, Cowlitz, Douglas, Ferry,
Franklin, Garfield, Grant, Grays Harbor, Kittitas, Lewis, Lincoln, Mason, Okanogan, Pend
Oreille, Skagit, Spokane, Stevens, Wahkiakum, Walla Walla, Whitman and Yakima counties.
The unintended consequence of the EIA is utilities are required to purchase additional
renewable power (or equivalent renewable energy credits) even if additional power is not
needed to serve customers - in many cases displacing clean, renewable hydropower and
disincentivising energy conservation. This additional excess renewable energy has already
resulted in an increased cost to Lewis PUD contributing to a retail rate increase of 8% on
September 1 to Lewis County citizens.
For more information contact:
Dave Muller
Manager
(360) 748-9261
September 30, 2011
Fishing Rule Change
WASHINGTON DEPARTMENT OF FISH AND WILDLIFE
600 Capitol Way North, Olympia, Washington 98501-1091
Internet Address: wdfw.wa.gov
Daily limit of trout increased on Scanewa Lake
Action: Increase trout daily limit to 10 in Scanewa Lake
Effective dates: Oct. 1, 2011 until further notice
Species affected: Trout
Location: Scanewa Lake (Cowlitz Falls Reservoir)
Reasons for action: Increase bag limit on stocked rainbow trout to encourage late season fishing effort to increase the overall harvest rate.
Other information: Rainbow trout (with clipped adipose fins) are stocked annually in Lake Scanewa as part of Lewis County PUD’s federal license to operate Cowlitz Falls Dam. Many of these fish remain available for harvest, and these regulations increase the opportunity for the angling public to harvest these fish this fall. The increased daily catch limit is intended to increase participation in this fishery and allow increased harvest of these fish.
An 8-inch minimum size limit remains in effect. In addition, anglers must release all cutthroat, and release rainbow trout except those having a clipped adipose fin and a healed scar at the location of the adipose clipped fin.
Information contact: Wolf Dammers (360) 696-6211
Fishers must have a current Washington fishing license, appropriate to the fishery. Check the WDFW "Fishing in Washington" rules pamphlet for details on fishing seasons and regulations. Fishing rules are subject to change. Check the WDFW Fishing hotline for the latest rule information at (360) 902-2500, press 2 for recreational rules. For the Shellfish Rule Change hotline call (360)796-3215 or toll free 1-866-880-5431.
January 2010
LEWIS PUD INCREASES RATE EFFECTIVE JANUARY 1, 2010
On December 21, 2009, the Board of Commissioners of Public Utility District No. 1 of Lewis County approved an overall average retail rate increase of 9.4% for all power use beginning January 1, 2010. The cause for the increase is a 7.5% wholesale power cost increase from the Bonneville Power Administration (BPA) that was effective on October 1, 2009, and the cost of compliance with Initiative 937.
Lewis County PUD purchases approximately 98% of its power from the BPA which represents about 70% of Lewis PUDs costs; with the economic downturn, the District has more than enough supply from BPA to serve its load. Initiative 937 (approved by the voters, November 2006) requires Lewis County PUD to acquire cost effective conservation and qualifying renewable energy to serve a portion of the PUD’s energy needs (hydroelectric is not considered a qualifying renewable resource under I-937). Because I-937 requires Lewis County PUD to acquire qualifying renewable power regardless of whether the District needs additional power or not, the District has purchased wind power at about 8 to 9 cents per kwh and backed off low cost BPA hydro power at about 3 cents per kwh, while also adding additional programs and measures to expand its conservation program. The BPA rate increase and the I-937 compliance costs have added approximately $4 million to the PUDs annual costs for 2010.
Lewis PUD has not increased rates since 2004, and actually reduced rates 4% in October, 2006. Even with this rate increase, Lewis PUD’s retail rates remain among the lowest in western Washington and the Northwest. Lewis’ residential rates will remain approximately 20% lower than Centralia City Light and ½ of Puget Sound Energy rates in Thurston County. Attached are utility comparisons of residential and commercial/industrial rates for western Washington utilities.
Links to rate comparisons:
Residential
Commercial/Industrial
Click here to view the Conservation Potential Assessment
January 2008
Concept Paper
Discussion of Chehalis River Basin Flooding and Solutions (Click to read paper)
June 2007
Residential Exchange Editorial
Lewis PUD Response to Private Utility Residential Exchange Program
June 12, 2007
Over the past couple of weeks there has been a flurry of media coverage regarding the May 3rd ruling by the 9th Circuit Court of Appeals and the resulting decision by the Bonneville Power Administration (BPA) to suspend $350 million in annual federal hydro system benefit payments to Northwest private utilities including Puget Sound Energy (PSE). The Chronicle carried two articles by the Associated Press, one on May 28, 2007, titled “Utility Battle Brewing over Rates Charged by BPA, and a second one on June 7, 2007, titled “Private Utility Customers to See Rate Jump”.
On May 21, 2007 Puget Sound Energy CEO, Stephen Reynolds, issued a statement that its customers are entitled to receive federal hydro power benefits from BPA and that the 9th Circuit Court ruling will cause a significant increase in electric bills for PSE residential and small farm customers. PSE stated that as a result of the court’s action, its customers will face higher bills while the customers of municipal utilities and public utility districts will continue to be subsidized. Mr. Reynolds further notes that PSE will be requesting that the Washington Utilities and Transportation Commission allow it to suspend the residential rate credit and that will result in a 13% increase in the average residential bill. PSE indicates that the residential exchange program has equitably distributed the benefits of the federal hydro for many years and that the recent court decision created a harsh inequitable disparity for the regions citizens.
Public Utility District No. 1 of Lewis County (Lewis PUD) submits this letter to offer some clarification and to remind folks that there are always two sides to a story and that this is surely the case with regard to BPA payments to the private utilities.
Lewis County PUD and other public utilities believe the 9th Circuit Court decision vindicates public utilities’ claim that BPA has been overcharging the Lewis PUD and its customers and using that money to subsidize the electric rates of the private utilities customers.
The real injustice here is that the customers of Lewis PUD and 118 other Northwest public utilities have been paying much more than they should have for over five years to support BPA’s now-illegal and excessive “residential power exchange” program.
This program of direct cash payment to the private utilities started 25 years ago in an attempt to meet a 1980 Northwest Power Act requirement that some benefits of the federal hydro power system be set aside for residential customers of private utilities.
BPA includes the costs of the “residential exchange” payments in the rates for the electricity it sells to public utilities like Lewis PUD which are then passed on to their customers. Historically, these payments have usually fluctuated between $50 million and $150 million per year. That is a range most public utilities have accepted as reasonable and fair.
However, in late 2001, following the West Coast energy crisis, these payments ballooned to between $300 and $380 million a year under new BPA – Private utility contracts. Public utilities were outraged, because their customers’ rates, including Lewis PUD, were raised to cover these costs. And these BPA costs for the private utility payments were added to already excessive rate increases by BPA. BPA increased rates to public utilities and Lewis PUD 46% on October 1, 2001, and Lewis PUD passed these costs on to its customers with a 30% retail increase. Public utilities filed suit against BPA making the argument that the private utility contracts were illegal.
Since 2001, private utilities have collected almost $1.8 billion in total payments from BPA, according to Public Power Council figures, about double the historical average, at public utilities expense. A typical Lewis PUD’s residential customer, using 2,100 kwh per month has been paying $6 to $7 per month more for electricity to fund the excessive payments to subsidize the private utility customer rates.
Now that the Court has ruled in favor of public utilities, it’s time to even things up. It is time to return to a fair and equitable payment system that complies with the Northwest Power Act.
As a result of the 9th Circuit ruling and BPA’s suspension of the private utility payments, private utilities, including PSE, have begun a political campaign calling for congressional action to change the Northwest Power Act. Public Power believes any kind of political strategy is risky for the Northwest. Everyone in the Northwest benefits from lower-cost BPA power, and there have been repeated attempts outside the region to take that benefit away from us. Seeking a political solution with Congress opens the door to yet another power grab, creating shortages and driving up power costs for everyone in the Northwest. If the rest of the country has its way, BPA power would be priced at market prices instead of at cost, a two or three fold increase.
Prior to 2001, BPA administered a reasonable sharing of the hydro system benefits between public and private utilities. Public utilities accepted that level of sharing. However in 2001, when BPA decided to abandon the historical fair sharing public utilities, including Lewis PUD, found the arrangement unacceptable. It is Lewis PUD’s hope that a fair settlement can be reached for both public and private utilities that falls within the guidelines set by the court and that complies with the Northwest Power Act.
Dave Muller
Manager
April 2007
Lewis PUD Commisioners Adopt Resolution "Green Dams, Blue Skies"
On April 9, 2007, the Commissioners of Lewis County PUD approved Resolution 2378 relating to the Northwest’s Federal dams and hydro system and supporting the Northwest River Partners’ Campaign “Green Dams, Blue Skies”.
The Commissioners oppose removing the lower Snake River dams or onerous changes in the federal hydro system operations that are not science based or cost effective. The Commissioners opposition stems from the devastating impacts such actions would have on the Northwest’s economy and on the District’s power supply costs and the fact that it would remove of a clean, renewable and reliable energy resource.
Lewis County receives nearly all of it electrical supply from the Bonneville Power Administration (BPA), of which approximately 85% is generated by the federal hydro system. The Snake River projects represent approximately 12% of BPA’s supply so removal of these dams would have significant impacts and the environment and BPA rates from replacement power.
The Lewis PUD Resolution supports the Northwest River Partners “Green Dams, Blue Skies” campaign to educate and raise awareness of benefits of the Northwest hydro system.
BPA Rates and Cost Control
Over the past few years BPA has had significant rate increases to pay for market power purchases and to meet its payment obligations to the U.S. Treasury. Rate increases like these have hurt Northwest ratepayers and the economy. Non profit utilities, including Lewis County PUD, have fought back, rallying BPA to cut costs and to look for other efficiencies.
Rising Costs for Fish
Since 1978 Northwest ratepayers have spent more than $7 billion on fish and wildlife programs. Today BPA spends an average of $690 million each year on such programs. BPA fish spending amounts to approximately 21% of its power costs. Lewis PUD purchases nearly all its power from BPA and for calendar year 2006, paid BPA approximately $25 million for power. As a result Lewis PUD ratepayers in 2006 paid $5 million or approximately 13% for fish. A typical Lewis PUD residential customer that purchases 2,100 kilowatt hours every two months pays $100 for power of which $13 is for BPA fish programs.
Balanced, Measured Results for Fish: Draft BiOp
You will be hearing a lot more about fish spending and in particular, the Draft Biological Opinion, or "BiOp" (during the next several months). The federal government just released the Draft BiOp, which outlines how the Columbia River power system will operate over the next 10 years to protect fish listed under the Endangered Species Act. The draft BiOp comes at a time when record salmon runs have been recorded on the Columbia River for the past several years. The draft BiOp is the first step in promoting cost-effective restoration efforts for the benefit of salmon and ratepayers. Some say that more money is needed from ratepayers to save fish. However, others such as Northwest public utilities and Lewis PUD, want to see results-based and accountable fish spending by BPA. The region needs to focus on programs that provide a balance between the benefits for salmon and ratepayer costs. For more information please go to the website at Northwest River Partners.