Portland,
Ore. – The Bonneville Power Administration and Port Townsend Paper Corporation
signed an amendment to the existing power sales contract that provides one of
the largest employers on the Olympic peninsula another nine years of low-cost
federal power. The amendment extends the term of the contract through September
2022, preserving 300 family wage jobs in a community of 8,300 residents while
providing BPA and the Northwest with financial and operational benefits.
The amendment was signed during a ceremony
today at the Northwest Maritime Center in Port Townsend, Wash.
“This
is fantastic news for Washington State and the Port Townsend Paper community,”
said Senator Patty Murray. “Today’s signing of this long-term contract shows
what can happen when government and industry come together to create jobs and
help families across our state.”
“Congratulations
to BPA and Port Townsend Paper for this ongoing successful partnership,” said
Gov. Chris Gregoire. “These 300 jobs make the world of difference to these
families and the economy of the peninsula.”
Port
Townsend Paper Corporation’s current contract with BPA runs through Aug. 31,
2013, with the amendment starting the following day. It has BPA continuing to
provide 20.5 average megawatts. However, BPA expects the newly formed Jefferson
County PUD to take over serving 8.5 average megawatts of Port Townsend Paper’s
load that currently serves its wheel turning load (load not integral to the
industrial process) and the Old Corrugated Containers recycling plant load
starting in July 2013. In that case, BPA would continue to serve the remainder
of the mill’s load, approximately 12 average megawatts, enough electricity to
serve more than 8,000 homes for a year.
Port
Townsend Paper President Roger Loney said, “Today we are celebrating the
signing of a new nine-year power supply contract with BPA which is critical for
additional growth for the mill.”
In
addition to the financial benefits, the power sales contract requires Port
Townsend Paper to make available to BPA 10 percent of the power delivered to
the mill should BPA need it to meet its obligations during a system
disturbance.
“For
more than 65 years, this important foundation of the Olympic Peninsula economy
has operated using low cost, zero air emissions electric power from the dams on
the Columbia and Snake rivers,” said Steve Wright, BPA administrator and chief
executive officer. “Now, after years of debate, we are committing to at least
another 10 years of service that we believe creates a symbiotic effect of
benefiting ratepayers across the Northwest as well as this community.”
Following
Port Townsend Paper’s most recent request to extend service, BPA conducted an
analysis, called the equivalent benefits test, to determine whether net
benefits would flow to BPA ratepayers through a contract with Port Townsend
Paper. Test results show that service can be provided through September of 2022
while continuing to benefit all BPA ratepayers. The ability to offer a
nine-year extension is primarily due to the long-term market price forecast for
Northwest electricity, which has been driven down by low natural gas prices.
Port
Townsend Paper Corporation, celebrating its 85th anniversary this year, is
located near the city of Port Townsend, Wash., on the northeast corner of the
Olympic Peninsula, and has been receiving electrical power from BPA since 1947.
