Chelan PUD to Sell Surplus Hydropower to Dominant Utility in Eastern Washington

Chelan PUD will supply energy to Avista Corporation, which is the dominant utility in eastern Washington and Northern Idaho.

The two companies have announced a 20-year deal for Avista to receive hydropower from the Chelan PUD's Rock Island and Rocky Reach dams.

The agreement calls for Avista to get 5% of the output from the two dams starting in 2026, increasing to 10 percent five years later.

The announcement of a contract between the two utilities did not reveal the rate Avista would pay for the power, only saying it was reached through a competitive bid.

Chelan PUD announced on December 23 that it may sell off a large portion of its surplus hydropower through a 20-year contract upon approval of its commissioners.

The PUD said at that point that the deal would commit up to 10% of the its hydropower as part of a larger updated energy-marketing plan.

The deal with Avista appears to be the result Chelan PUD's December announcement.

In a statement released Thursday, executives from both utilities made statements about the agreement.

“We see great value in this partnership with Avista as it delivers more clean, renewable, reliable hydropower to customers in the Pacific Northwest,” said Chelan County 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.”

 “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.”

The Thursday statement also said the 20-year contract would increase Avista’s carbon-free resources toward its 2030 renewable energy goals, as well as allow for flexibility to meet power needs in Washington and Idaho.