Mason PUD News

PUD 3 Retains Neutrality on Proposed ADAGE Biomass Power Plant

What is the ADAGE biomass plant?
 
A partnership called ADAGE (Areva & Duke Alternative Green Energy), has been considering the construction of a 55 megawatt, $250 million wood-burning power plant near Shelton on Johns Prairie. The company says that the construction will create more than 400 direct jobs. It also says more than 100 direct jobs will be available during permanent operation.
 
The generating station would be a merchant plant, with ADAGE intending to sell the energy (considered a qualifying renewable resource) on the open market to the highest bidder.
 
Will Mason County PUD No. 3 purchase any of the output?
 
Under the Washington Energy Independence Act (Initiative 937), PUD 3 is required to get three percent of its load from qualifying renewable energy resources by 2012; nine percent by 2016; and 15 percent by 2020. Most of the PUD’s efforts have focused on wind power, increased generation from hydro efficiency upgrades, conservation, and a cost cap that protects utilities from undue rate impacts from the purchase of renewable energy.
 
Although energy that would be generated by the ADAGE wood-burning (biomass) plant is a qualifying renewable resource as defined in the original citizens' initiative and retained in current state law, there’s no certainty at this time that the output would be needed or cost-effective for the PUD’s renewable energy mandates.
 
For these reasons, PUD 3 is relatively neutral on the issues surrounding construction of the ADAGE plant.
 
Why is Mason County PUD No. 3 extending a water line to the site of its proposed Johns Prairie operations center?
 
First and foremost, the Mason County PUD No. 3 proposal to extend municipal water to the Johns Prairie area is intended to support the construction of a new operations center in that area NE of Shelton.
 
The city of Shelton and Mason County have designated much of Johns Prairie as a portion of the Shelton Urban Growth Area where they wish to promote commercial and industrial development. This designation has been made in compliance with the Washington State Growth Management Act. Previous state and local environmental studies, and their associated State Environmental Policy Act (SEPA) checklists, have shown concern over withdrawal of water from the Johns Creek aquifer and have endorsed extension of municipal water to the area. Because of the need for adequate water flow to meet fire safety standards at its property, PUD 3 opted to work with the city to extend water to its proposed operations center.
 
At certain times of the year, Johns Creek experiences low water flow conditions and higher than appropriate temperatures for wildlife. The extension of city water is a part of a wider solution consistently suggested by the Squaxin Island Tribe and Washington State Department of Ecology to protect stream flows and salmon runs in Johns Creek.
 
Who benefits from the extension of the water line along Johns Prairie Road?
 
This project addresses two major issues in the Johns Prairie area. It will reduce and avert withdrawals from the Johns Creek aquifer, protecting stream flows and critical salmon habitat. It will also address domestic water and fire flow requirements for commercial and residential development in the industrially zoned area of the Shelton Urban Growth Area.
 
Over 150 individual property parcels are adjacent to the route of the water line. Any of the property owners may connect to water service after paying a proportionate share of the construction cost of the project and a connection fee to the city of Shelton. Property owners such as Mason County PUD No. 3; the Mason Transit Authority; the Mason County Recreation Area; Port of Shelton; manufacturing firms looking to expand their operations; and new commercial or residential construction will benefit.
 
Why is the water line a 16-inch pipe?
 
The city of Shelton, as part of its development standards, requires construction of 16-inch water mains to meet fire flow and domestic water needs. The 16-inch pipe will join with a similarly sized line constructed by the Port of Shelton that provides fire flow to port-leased property in the Johns Prairie area.
 
Who will be the water supplier and where will the water come from?
 
The city of Shelton will provide municipal water to the Johns Prairie area. The water will come from the Mountain View reservoir, which can be served by three city wells. In August 2009 the city and PUD 3 signed a utility extension agreement specifically for the PUD’s Johns Prairie property. In the agreement, the city stated that it has enough water capacity to provide domestic water and fire flow for the PUD. The city also noted that it has sufficient water capacity to serve the John’s Prairie industrial area and will allow other private property owners to connect to an extended water system.
 
How will the water line be financed?
 
PUD 3 will recover the costs of construction through proportionate latecomer payments as others connect to the new pipeline. This financing method is a common practice of the PUD in connecting new electricity customers who require construction of longer than usual distribution lines. In these cases a customer pays the total cost of a line extension, and then recoups a portion of their expenditure from customers who connect to the new line. This is also a common practice in Washington State to finance the extension of infrastructure.

 

© 2009 Mason County Public Utility District No. 3