...a community-owned and governed utility, created to provide safe, reliable and cost-based electric and wholesale telecommunication services...

P.O. BOX 2148
SHELTON, WA 98584

(360) 426-8255

Learn more about

and what you can do to help.

To Report Outages
360-432-1533 (Shelton)
360-275-6518 (Belfair)
360-861-4247 (Elma)

Mason PUD News

Commission Report for June 1, 2010

Meeting Highlights

Partial payment for Mountain View substation upgrade
Commission issues call for bids for Johns Prairie operations center
Commission authorizes sale of electric revenue bonds
Commission authorizes continued participation in Radar Ridge wind farm studies

Consent Agenda

Mason County PUD No. 3 Commissioners approved vouchers in the amount of $383,320.

PUD 3 Commissioners voted to release a partial payment to Mountain Power for the company’s rebuild of the Mountain View substation. The payment was approved in the amount of $206,068. Including this payment, $1,084,600 has been paid to Mountain power of a total bid price of 1,197,620, plus taxes.

The total cost of the project, including prior purchases of equipment is estimated at approximately $2.3 million. Commissioners will visit the substation in the afternoon of June 1 to inspect the completed project.

The upgrade establishes separate circuits for the Mountain View, Mason and Johns Prairie substations. This improves reliability and flexibility when responding to system maintenance or outages.

The PUD’s Mountain View substation serves nearly 2,700 customers in Shelton and north of the city limits.

Comments from the Public

John Komen of Mason Lake spoke in opposition to the Johns Prairie Operations center and the extension of municipal water to the site. Komen stated his concern with the cost of the operations center. He also cited the potential impact on the environment due to the proposed construction of a wood-burning power plant, which may connect to the extended water main.

Louis Cofoni of Shelton encouraged the commission to continue with their operations center project and the associated water line extension. Cofoni cited higher financing and construction costs if there was a delay. He stated that the water line will benefit all businesses in the Johns Prairie area and result in job opportunities.

Al Brotche of Shelton asked commissioners to consider an advisory vote on the Johns Prairie operations center.

Theresa Jacobson of the Agate area stated her opposition to the Johns Prairie operations center. She presented concerns about the source and amount of water that will serve the area via a new water main. PUD staff answered that the Mt View reservoir, a tank near Olympic College, would be the main source of water. It is fed by a deep well near the Shelton Springs Road. Jacobson was referred to the City of Shelton for further information about related water volumes and pressure.

Shelton area resident Brenda Hirschi added her request that commissioners consider the suggestion for an advisory vote on the operations center.

Action Items

On a 2-1 vote, commissioners voted to issue a call for bids for the Johns Prairie operations center. Commissioner Tom Farmer asked what level of interest was anticipated for bidding on the project. Wyla Wood, PUD 3 manager, stated considering the economic climate that she expected a large number of bidders, and extremely competitive proposals.

Commissioner Linda Gott stated that the project will be functional and utilitarian; a facility that will provide value to the PUD 3 ratepayers.

Commissioner Bruce Jorgenson moved to table the matter until an advisory vote could occur. The motion died for lack of a second.

On a 2-1 vote, commissioners approved Resolution 1510 authorizing the issuance and sale of electric revenue bonds.

Commissioners heard from Alan Dashen, the PUD’s financial advisor that a tentative July 20 bond sale would refinance $11 million in pending PUD 3 bonds at lower interest rates; fund several capital projects, including a major upgrade to the nearly 60 year old Mason Substation in downtown Shelton; and $36 million for the Johns Prairie Operations center. Dashen stated that although a scoping amount of $71 million was suggested at this stage of the process, it could be much lower.

Darren Bell of Piper Jaffray noted that refinancing of outstanding bonds would save the PUD an estimated $520,000 in interest charges. Bell stated that through a stimulus funding vehicle called “Build America Bonds” that PUD 3 would be able to reduce borrowing costs for the overall bond sale.

On a 2-1 vote, commissioners authorized a bid award in the amount of nearly $22,000 to Thomas and Betts Corporation for a specialized steel pole for transmission and distribution power lines along Johns Prairie Road. The engineer’s estimate for the pole was $35,000.

Commissioners adopted Resolution 1511 declaring 20 older telephone sets a surplus and authorizing an interagency transfer of the equipment to NoaNet.

Staff Reports

Wyla Wood, PUD manager reported that Energy Northwest has requested that participating utilities in the Radar Ridge wind farm provide additional funding for environmental studies through July as a part of the development phase of the Pacific County based project.

Commissioners voted to continue PUD 3 participation in the effort.

The Radar Ridge project has seen an increase in development costs due to required studies on perceived impacts to the marbled murrelet; peer reviews requested by natural resource agencies; investigation of enhanced radar studies and bird diversion strategies; and uncertainty over the level of environmental assessments prior to permitting.

PUD 3’s share of the increased costs through July is estimated at $38,000.

The initial development budget for the project was estimated to be $2.3 million. With delays, additional studies or wildlife protection measures, and necessary Bonneville Power Administration upgrades it is possible the development budget could increase to over $5 million.

Mason County PUD No. 3, Clallam County PUD, Grays Harbor County PUD, and Pacific County PUD are participants in the project. PUD 3 has committed to an effective 11.25% share of the project.

The federal government has allocated nearly $110 million in Clean Renewable Energy Bonds to go towards the funding of the Radar Ridge wind project. The project could generate up to 82 megawatts of electricity; enough energy to power approximately 18,000 homes. It is expected to consist of up to 32 wind turbines.

Next Meeting

The next PUD 3 commission meeting takes place June 8, 2010 at 10:00 AM in the PUD auditorium at 307 West Cota Street in Shelton.