Snohomish County Public Utility District No. 1

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BPA Long-Term Contracts

December 4, 2008

Energy Deal Provides Stable, Low-Cost Supply
Snohomish PUD Signs Long-Term BPA Energy Contract

Snohomish County Public Utility District today announced it has signed a long-term power contract with the Bonneville Power Administration (BPA), ensuring a stable and reliable energy source through 2028.  The contract will provide about 80 percent of the PUD’s energy needs.

“We’ve worked closely with BPA and other regional utilities to develop contracts that provide certainty and preserve this valuable resource for the people of the Pacific Northwest,” said PUD General Manager Steve Klein. “As BPA’s largest customer, the PUD has actively participated in a regional dialogue to make sure that energy is fairly allocated among all of BPA’s customers.”

Under the contract, covering the period of 2011-2028, the PUD will receive energy from products known as “Block” and “Slice.” The Block product provides a consistent, predictable amount of energy each month, while the Slice product provides a percentage of output from the Federal Columbia River Power System that varies by month, depending on water and snow pack conditions. The PUD has several years of experience managing both of these energy sources.

“These agreements assure the benefits of low-cost power supply for the next 20 years – thus preserving the value of the federal system for another generation of Northwest citizens,” said BPA Administrator Steve Wright.

By securing these BPA contracts well before existing contracts expire, the PUD can ensure that other new energy resources that complement BPA contracts can be in planned for and in place when they are needed.

With the new BPA contract, the bulk of the PUD’s energy will continue to come from clean, renewable hydroelectric sources. Other PUD renewable sources include energy from Northwest wind projects, co-generation projects fueled by wood-waste, a landfill biogas facility and a PUD-owned hydroelectric project in the Sultan area. The utility is also exploring a diverse mix of other resources, including tidal, geothermal and solar.