From the President

The landscape for public power in the northwest is changing dramatically. The Federal Base System (FBS), which consists of federal hydroelectric projects and the Columbia Generation Station nuclear plant, are no longer able to provide an adequate supply of power on a critical water basis. That means that utilities are going to have to make a choice about how to secure electricity beyond the FBS very soon.

At PNGC Power, we have been actively involved with the ongoing Bonneville Power Administration (BPA) Regional Dialogue process, which addresses this situation and will define BPA’s new long-term contracts. The contracts, which begin operations October 1, 2011, reflect a two-tiered rate system for cost-based FBS power and a Tier 2 rate for additional load growth beyond the FBS. The contracts will allow utilities to provide their own power for their requirements above the FBS, or, buy at the incremental Tier 2 rate.

We see this as an opportunity to secure PNGC members’ share of the FBS and embark on a business strategy to acquire generating resources that can be pooled to efficiently meet the collective needs of our members. PNGC members will actively control the selection and management of generating resources and contracts that will deliver cost-based electricity to member systems.

PNGC members benefit by pooling loads and resources with like-minded cooperatives with a shared interest in keeping future wholesale energy costs economical while minimizing risk. Other benefits of PNGC membership include power supply services, advocacy and expertise for lobbying regionally and nationally and expertise for meeting member-specific service needs.

We are encouraged that several regional cooperatives have expressed interest in potential membership. The forward-thinking work of the PNGC Board and potential new members has refined this vision to assure a successful implementation for near term gains and long-term benefits for future generations.

John Prescott
President/Chief Executive Officer
PNGC Power