STRAIGHT TALK FROM KPUD; Part 2 of a series
News from our Sponsors
Part 2 of a series by Jim Smith and Rodger Nichols
Last week we featured some unanticipated impacts of recent state carbon legislation. Today, we want to give you a bigger view of the changes happening in our electric industry and what we are doing about it.
Klickitat PUD still buys most of its power from the Bonneville Power Administration (BPA). By statute, BPA is required to sell power at cost—not for profit—to public utilities.
BPA guarantees it will supply a set amount of power, which the system can reliably provide. This Tier 1 Preference Power is the least expensive.
When demand for power exceeds BPA’s Tier 1 capacity, as it does in Klickitat County, the PUD is left with two choices: buy additional power through BPA’s Tier 2 power or from the open market.
The PUD has a small amount of its own generation through a hydro facility on the McNary Dam, that is co-owned with Northern Wasco PUD. This power generated is used to serve customer loads. We also have a small share in a Packwood hydro project, as well as a 13% share of the output from the White Creek Wind Project, though that output is sold on the market.
Local demand is getting more critical. Historically, Klickitat PUD has seen a steady 1% increase in load growth each year. In recent years, that number has doubled. It’s due in part to population growth, but also to cryptocurrency mining and a major increase in irrigation load.
Carbon reduction policies adopted by the Legislature will drive further electrification. These policies affect residential and commercial building codes and will shift the use of natural gas to electricity.
Growing electric vehicle use
These policies also promote electric vehicles, which require charging at homes or at charging stations, further increasing electric demand. In one case we are familiar with, the vehicle charging tripled a home owner’s electricity use.
Currently, 206 electric vehicles are registered in Klickitat County. The state predicts 1,300 EVs will be registered in the county by 2030. Remember, current state legislation bans the sale of new internal combustion engine vehicles starting in 2035.
Klickitat PUD has a responsibility for managing our power supply, setting our rates appropriately. and upgrading our electrical infrastructure in order to supply these increasing loads.
Next week: why replacing power sources is difficult. To read part 1 in this series, series click here.
