Mason County PUD No. 3 RSS Feed

PUD 3 is Part Owner - Packwood Hydroelectric Project to Receive Stimulus Funds for Generator Upgrades

The Packwood hydroelectric project in east Lewis County is in line to receive $800,000 in stimulus funds from the US Department of Energy for generator upgrades. Mason County PUD No. 3 has a ten percent share in the hydro plant, which is operated by Energy Northwest. There are a total of 12 public utility districts that are participant/owners of the project.

Energy Northwest will use the funds for an estimated $1.6 million in upgrades to the power plant’s water turbine and other associated improvements. The changes to the Packwood facility will improve turbine efficiency by nearly six percent resulting in an estimated increase in energy production of nearly 6,000 megawatt hours annually.

The hydroelectric project has a generating capacity of 27.5 megawatts, which is enough energy for nearly 6,000 homes.

Increased water flows will also benefit wildlife, particularly resident trout and endangered anadromous fish, and provide more sustainable habitat conditions downstream of the project.

“This project has been providing clean, renewable energy to the region for nearly half a century,” said Jay Himlie, PUD 3 power supply manager. “In addition to the continued operation of this valuable hydroelectric project, the incremental portion of the output resulting from the upgrades should qualify as a renewable resource under Initiative 937.”

Improvements to the hydroelectric facility are expected to begin in early 2010 with an anticipated completion by late 2011.

Project Details (From Energy Northwest)

The power plant structures at Packwood Lake are limited to a small diversion and intake structure a short distance downstream from the outlet of the lake. A five-mile underground pipeline carries the water down the mountain to a powerhouse near the town of Packwood. A unique aspect of the facility is the 1,800-foot drop in elevation, which generates 780 psi of pressure at the turbine. The turbine generator is capable of generating up to 27.5 megawatts of electricity.

The project has 12 Washington State public utility district participants who are entitled to a percentage of the project output.

Participant/Owners include: Benton County PUD, Clallam County PUD, Clark County PUD, Ferry County PUD, Franklin County PUD, Kittitas County PUD, Klickitat County PUD, Lewis County PUD, Mason County PUD No. 3, Skamania County PUD, Snohomish County PUD, and Wahkiakum County PUD.

Environment - Determination of Nonsignificance - Johns Prairie Operations Center

DETERMINATION OF NON-SIGNIFICANCE

Description of proposal: The proposal is the construction of a new Maintenance and Operations Center consisting of five (5) separate buildings with parking, utilities, and landscaping.

Proponent: Mason County PUD No. 3, PO Box 2148, Shelton, WA 98584

Location of Proposal: 2621 East John’s Prairie Road, Shelton, WA

Lead Agency: Mason County PUD No. 3 (PUD No. 3)

The lead agency for this proposal has determined that it does not have a probable significant adverse impact on the environment. An environmental impact statement (EIS) is not required under RCW 43.21C.030 (2)(c). This decision was made after review of a completed environmental checklist and other information on file with the lead agency. This information is available to the public on request.

This DNS is issued under WAC 197-11-340(2); the lead agency will not act on this proposal for 14 days from the first publication date of this notice. Comments must be submitted by 11/19/2009.

Responsible official: Terry Peterson, PUD No. 3

Position/title: Engineering Manager, Responsible SEPA Official

Phone: 360-432-5266

Address: 235 S. 3rd, P.O. Box 2148, Shelton, WA 98584

An appeal this determination may be made to: Mason County PUD No. 3 Board of Commissioners at Mason County PUD #3, P.O. Box 2148, Shelton, WA 98584. Appeals may be filed no later than December 8, 2009 by mail.

Appellants should be prepared to make specific factual objections. Contact the Department of Ecology to read or ask about the procedures for SEPA appeals.

Legal Notice - Comments Solicited for New Standards under the Public Utility Regulatory Policies Act

LEGAL NOTICE

PUBLIC UTILITY DISTRICT NO. 3 OF MASON COUNTY

NOTICE OF INQUIRY by the COMMISSION of PUBLIC UTILITY DISTRICT NO. 3 OF MASON COUNTY FOR PUBLIC

COMMENT ON NEW FEDERAL STANDARDS REQUIRED FOR CONSIDERATION BY THE ENERGY INDEPEDENCE AND

SECURITY ACT OF 2007 UNDER THE PUBLIC UTILITY REGULATORY POLICIES ACT

TO INTERESTED PERSONS

Pursuant to section 532 of the Energy Independence and Security Act of 2007 (EISA-07), the Board of Commissioners of Public Utility District No. 3 of Mason County (Commission) hereby gives notice that it will consider four (4) new federal standards under the Public Utility Regulatory Policies Act (PURPA) Section 111(d), Section 1307, and one (1) under EISA Section 374, under which a utility must make a determination about whether or not to adopt the standards by December 19, 2009. The five new standards include 1) Integrated Resource Planning, 2) Rate Design Modifications to Promote Energy Efficiency Investments, 3) Consideration of Smart Grid Investments, 4) Smart Grid Information, and 5) Additional Incentives for Waste Energy.

The Commission intends to hold a public proceeding to consider whether it is appropriate to adopt, in whole or in part, or not adopt the noted standards. Per this notice, the Commission initiates the proceeding and invites written comments and proposals. Background information may be found at www.masonpud3.org or may be obtained at the administrative offices of Mason County PUD No. 3, located at 307 W. Cota Street, Shelton, WA 98584, or will be mailed by calling Jay Himlie, power supply manager at 360-426-8255. The Commission invites initial written public comments and proposals to be submitted between November 5, 2009 and December 7, 2009. The Commission will publish notice of a workshop or hearing to consider comments or proposals received.

COMMENTS AND PROPOSALS

Comments and proposals in written or electronic form may be provided to Mason County PUD No. 3 by submitting comments in writing to Jay Himlie, power supply manager, P.O. Box 2148, Shelton, WA 98584, or email jayh@masonpud3.org. Proposals must address the five PURPA purposes. Further information is available on the Mason County PUD No. 3 website at www.masonpud3.org. All comments and proposals will be included in the Mason County PUD No. 3 Energy Independence and Security Act (EISA-07) PURPA Proceeding.

The Commission’s determination will be based upon the comments received and upon consistency with the purposes, and whether the standards provide cost-effective long range benefits and are consistent with other applicable law. The Commission will schedule a workshop or hearing in the future based upon comments or proposals received, which will be scheduled pursuant to a subsequent notice.

PUD 3 Connection - Two Washington State Wind Farm Proposals get Clean Renewable Energy Bond Allocations

Two renewable energy projects with connections to Mason County PUD No. 3 are a part of nearly $500 million worth of federal allocations snapped up by Washington State for Clean Renewable Energy Bonds according to an announcement this week by the US Department of treasury.

The funds will go towards renewable wind and hydropower projects on the books for public power providers in the state. PUD 3 is a participant in one of the wind projects and has expressed interest in taking part in a second.

Nearly $110 million was allocated for bonds to go towards the funding of the Radar Ridge wind project near Naselle in SW Washington. 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. Depending on permitting and construction, the project could be operational by as early as late 2011. In addition to Mason County PUD No. 3, other Radar Ridge partners are Clallam County PUD, Grays Harbor County PUD and Pacific County PUD. Mason PUD 3 has committed to a 15% share of the project.

Just over $84 million of the bond allocation could go towards funding of the proposed Mustang Ridge wind project in south central Washington. It is proposed to be located in Benton County along a ridge south of Highway 82 between Prosser and Benton City. Energy Northwest is in the pre-development phase of the project and is seeking interested participants to determine the size of the project prior to starting the permitting process. Currently, Mason County PUD 3 and Clallam County PUD have expressed interest in the venture. The initial proposition has suggested an operational date of December 2012.

The Clean Renewable Energy Bonds program helps public power utilities obtain lower cost financing for clean energy development projects.

"This innovative bond program provides communities around the country with financing to jump start important development projects," said Treasury Deputy Secretary Neal Wolin. "Because of the Clean Renewable Energy Bonds, energy developers will be able to access lower cost credit to help make the shift to clean renewable energy production, benefitting both our economy and our environment."

These bonds function as tax credit bonds which allow investors to receive federal tax credits that will cover 70 percent of the interest on the bonds.

PUD 3 Conducting Tree Trimming on Highway 3

Mason County PUD No. 3 has begun a six-week tree trimming project on State Route 3. Crews began the work on Monday, October 26. The work will include tree trimming and removal from the intersection the north end of Grapeview Loop Road, continuing north to the vicinity of the PUD 3 Belfair office and substation.

Motorists are advised that they may experience occasional traffic delays during the job. Letters have been sent to customers along the route.

The PUD carries out tree trimming and vegetation management as part of a program to reduce the number of tree-related electricity outages and speed up restoration if outages occur.

PUD 3 maintains 670 miles of overhead power lines in its service area. The PUD works in a six-year cycle, with a goal of clearing approximately 100 miles of right of way each year.

If property owners have power lines that run through their property, they are asked to consider if there are any danger trees that could potentially fall into the lines and contact PUD 3 if they have any concerns. If homeowners have questions about appropriate trees and the tree trimming program, they may contact PUD 3 at (360) 275-2833, extension 3237 or at extension 5268.

PUD 3 Commission Report for October 27, 2009

The Mason County PUD No. 3 Board of Commissioners approved vouchers in the amount of $1.7 million.

Commissioners authorized staff to issue a request for qualifications for design and engineering for the proposed extension of City of Shelton water to Johns Prairie.

Commissioners concurred with a staff recommendation to select Wilson Recycling of Shelton for scrap metal disposal service.

Commissioner Tom Farmer asked for clarification on a $14,000 rebate to the Squaxin Island Tribe for energy conservation. The project involved replacement of parking lot lights with energy efficient fixtures and the retrofitting of outside lamps with photo cells. The PUD will be reimbursed for its outlay through a Bonneville Power Administration conservation program.

John Komen of Grapeview commented on the number of action items on the commission agenda related to the design and construction of the new Johns Prairie Operations Center. Mr. Komen asked the commission to stop the current process and set the proposal aside for future consideration with a revised scope.

Commissioners adopted Resolution 1491 – Establishing Administrative Filing Fees for State Environment Policy Act (SEPA) Appeals. The public may make comments on the PUD’s determination of no significant environmental impact from the Johns Prairie Operations Center project. However, an appeal of the final determination must be accompanied by a $200 fee to help cover administrative and hearing costs of a review. Surveys of Washington State and local government charges for similar charges show a general fee range of between $100 and $500.

Commissioners authorized (on a 2-1 vote) a contract with TCF Architecture for the development of construction documents through bidding for the Johns Prairie Operations Center project. The estimated cost of the contract is $1.3 million. During discussion, Commissioner Bruce Jorgenson moved to table the motion. The motion to table failed for lack of second. Commissioner Jorgension reiterated his position that he approves of relocating warehouse and operations facilities to Johns Prairie, but not administrative functions. He suggested further public meetings on the issue.

Commissioners authorized an extension to a contract with Olympic Associates for project management services related to the Johns Prairie project. The cost of this third extension to the contract is $32,400.

Commissioners authorized the release of the SEPA determination for the Johns Prairie Operations Center project. The determination of non-significance concludes that there will not be significant environmental impact from the project. The report is now subject to public and governmental agency review.

Commissioners authorized a contract with Olympic Associates for project management services related to the extension of City of Shelton water to Johns Prairie. The value of the contract is a not-to-exceed cost of $35,300.

PUD 3 commissioners decided to choose a short-term option with the Bonneville Power Administration on the rate structure of wholesale electricity purchased for local customers from 2011-2012.

BPA is offering a new tiered rate system in the upcoming long-term power contract. Under the program, utilities are allocated a certain level of electricity in one tier that can be purchased at the lowest available rate provided by the federal generation system. Energy loads above that level would be in the second tier, and purchased at a higher rate provided by market purchases.

The commission agreed to meet energy needs above its initial BPA allocation with the short-term tier two option. In the interim, the PUD will be considering the short and long-term energy requirements of its customers and how the new structure will complement the requirements of Washington State’s renewable energy mandates.

On average, this will not have an immediate impact on the price of electricity purchased from BPA, but because it will result in some price volatility from month to month, it will mean more active management of PUD reserves to minimize local budget impacts.

Commissioners adopted Resolution 1492 – Amendment No. 1 to BPA Power Sales Contract. The amendment reconciles language in the long-term power contract with BPA to make it consistent with the tiered rate structure.

Commissioners adopted Resolution 1493 – Declaring Distribution System Items Surplus. The resolution authorized the sale or disposal of various pieces of equipment.

Commissioners authorized staff to make changes to the way in which PUD 3 addresses the removal, decommissioning, and disposal of a customer’s inefficient refrigerator or freezer. The process will be contracted to JACO, which will ease the work load on conservation staff. Customers will receive a $30 billing credit for up to two units removed from their home. JACO will be reimbursed for its role in the process through BPA conservation programs.

Matt Samuelson, Senior Power Supply Analyst reported that the Discovery Chapter (Pacific County) of the Audubon Society has issued a statement of support for the Radar Ridge wind project in SW Washington. The statement was sent to the Washington State Congressional delegation, US Fish and Wildlife Service and others. After reviewing the scientific studies on the project’s relationship to endangered species and other wildlife, the group concluded that the impact of the wind turbines will be minimal.

The next PUD 3 commission meeting takes place November 3, 2009 in the PUD 3 auditorium at 307 West Cota Street in Shelton at 10:00 a.m.

PUD 3 Fiber Network - Economic Development Rides Light Waves on Lynch Road

Andy Hunter, owner of Lynch Creek Farm prepares a pine and cedar wreath for a lucky customer

Click here for more information about the Mason County PUD No. 3 Fiber Optic Network and the Internet Service Providers who use it to offer advanced telecommunications services

A recently completed public/private broadband service project in the Lynch Road area south of Shelton is expected to result in the retention of nearly 66 local jobs and lead to the creation of 15 jobs or more. The cooperative project involved investment from local businesses, the Mason County Commission, support from the Economic Development Council of Mason County (EDC) and Mason County PUD No. 3’s telecommunications department.

As one of the eleven businesses to benefit from the project, Lynch Creek Farm touted the absolute necessity of high speed internet and data services that the PUD 3 fiber network now provides to the area. “We now have the fastest internet connections available just about anywhere in the US,” said Andy Hunter, Lynch Creek Farm owner. “Customer orders, product processing and shipping will now take a fraction of the time. Our customers will have real time information on their order process and tracking that was impossible before. Our fiber connection also increases the flexibility of our phone system.” (See the full list of businesses at the end of the news release.)

“Need for Speed” Sparks Business Efforts

Businesses along Lynch Road south of Shelton were in a quandary. As they were growing or seeking to relocate staff to the Taylor Towne area, they were running up against a digital wall: dial-up internet was problematic; their marginally faster digital service from a telephone company was being dropped; or they were forced to consider long-term, expensive internet satellite contracts.

Enter the EDC, PUD 3, the Mason County Commission and local internet service providers. With a project cost of $272,000, a cooperative funding package was needed to make the extension of the PUD fiber optic network to businesses in the area a reality. The PUD and business owners committed $128,000 to the project. The utility’s investment would provide a necessary broadband connection to monitor electrical equipment in the area.

Mason County Commissioners voted to complete the broadband funding package by allocating $144,000 from a dedicated economic development fund which can only be used for the development of public infrastructure or certain economic development efforts that retain or lead to the creation of new jobs. This account is funded by a portion of the state sales tax. To be eligible, the projects must be included in the county-adopted community economic development strategy.

“The fund from which the county contribution to this project was allocated can only be used for public infrastructure or programs like this,” stated Mason County Commissioner Ross Gallagher, in whose district the broadband endeavor took place. “The investment will have no impact on the county’s current expense budget and, in fact, will provide a benefit to the county through the retention and creation of local jobs.”

The financial investment of the local businesses and the use of a dedicated county economic development fund completed the elements necessary for the project to move ahead. The end users worked with local internet service providers to make the final broadband hookup to the Mason County PUD No. 3 fiber network.

“I can’t say enough about the perseverance of the businesses that worked so hard on this effort,” said Dale Knutson, PUD 3 Telecommunications Manager. “Since this was focused primarily on the interested businesses, they will see the first benefits. However, because of the cooperative work we have done, homeowners in the project area will soon have the opportunity to work with local internet service providers to obtain extremely fast internet and data services over the PUD network.”

Walter Dacon Winery Toasts its new fiber optic connection

Local Businesses Participating in the Lynch Road Project

Bennett & Son Painting Company, Inc. (Construction/Painting)
Bob Kimbel, Inc. (Excavating)
Coleman Clams (Aquaculture)
Frank & Patty Hughes
Helene Coleman Massage Therapy (Therapy)
Jim Penney (Volunteer/Community Affairs)
JJ Brenner Oyster Company (Aquaculture)
Little Skookum Shellfish Growers (Aquaculture)
Lynch Creek Farm (Retail/Evergreens
Walter Dacon Winery (Winery)
Wes Wasson, Christmas Trees (Agriculture)

October 27 – Planned Power Outage for Harstine Island South Road Area

Mason County PUD No. 3 has announced that on the morning of Tuesday, October 27 there will be a planned power outage for some customers in the vicinity of Harstine Island South Road and Jared Road. Approximately 40 customers will be affected.

The outage is necessary to allow for PUD 3 to upgrade equipment in the area, which will result in improved system reliability and safety.

The planned outage will begin at 12 noon on the 27th, and is expected to last about three hours. Letters of notification have been sent to customers in the project area.

Specific areas affected by the project include:

Jared Road
Nicole Lane
Cook Drive
Cook Place
Hedlund Drive
Latham Lane
Thors Place
Seapenn Lane

While the project is underway motorists may experience occasional traffic delays.

As with any outage, the PUD recommends that sensitive electronic appliances and equipment be turned off and unplugged until power is restored for at least 20 minutes. Also, especially with today’s electronics, it is important for customers to consider the use of surge protectors in their homes.

If customers have any questions, they may call the Shelton Line Superintendent at (360) 426-8255, extension 3233 or Operations Manager Bob Smith at (360) 426-8255, extension 5268.

Lake Cushman Electricity Restored

A fallen tree limb this morning cut electricity to about 675 Mason County PUD No. 3 customers in the Lake Cushman area. PUD 3 crews were able to restore service at 1:55 this afternoon.

The outage occurred at 10:43 AM when a tree limb fell into power lines. The general area of the outage was Cushman Divisions 1, 2, 3, 4, 13, 14 and 15.

PUD 3 Commission Report for October 20, 2009

The Mason County PUD No. 3 Board of Commissioners approved vouchers in the amount of $433,255.

Senior Power Supply Analyst Matt Samuelson reported that there are seven customers participating in PUD 3’s “net metering” program. Six of the customers are producing electricity with solar panels while another is experimenting with a small wind turbine. If these customers produce more electricity from their renewable energy systems than they consume in any given month, they are provided a credit toward future consumption.

In addition, participants may benefit from the Washington State Renewable Energy System Cost Recovery Incentive Program, which is administered by the state Department of Revenue. Four of the seven net metering customers participated in the program for F.Y. 08-09, generating approximately 9,000 kWh of electricity, for a combined compensation of $1,350.

While the payments are made by PUD 3, the utility is credited for its outlay by a corresponding decrease in PUD excise taxes. More details on the program may be found at the link below.

http://dor.wa.gov/Docs/Pubs/SpecialNotices/2009/sn_09_RenewableEnergy.pdf

Manager Wyla Wood reported on the completion of the Lynch Road fiber optic extension project. The project was funded by a dedicated county sales tax fund, PUD 3 (for the purposes of monitoring electrical equipment in the area), and local businesses. The project will result in the retention of 35 jobs and the expected expansion of 15 positions at businesses in the project area.

Wood also stated that a PUD fiber optic project in the Kamilche and Cloquallum areas was on a list of recommended applications for federal broadband stimulus funds. It’s expected that a formal announcement on the status of the proposal will come in early November.

The next PUD 3 commission meeting takes place October 27, 2009 in the PUD 3 auditorium at 307 West Cota Street in Shelton at 10:00 a.m.