Seattle City Councilmember Bruce Harrell

Council Bill 116194 was passed by the Energy and Technology Committee on May 7th, and by Full Council on May 12th. This is a bill that authorizes City Light to execute three agreements to provide for the transmission of power from the Summer Falls and Main Canal Hydroelectric Projects to the City of Seattle. This bill replaces an expired transmission agreement with the Avista Corporation for the transmission of power from the Summer Falls and Main Canal Hydroelectric Projects.

The agreements employ the services of both Avista and Public Utility District #2 of Grant County and will provide an efficient and cost-effective alternative to either interconnecting with the Bonneville Power Administration grid or continuing service under Avista’s previous contract. The execution of these contracts will result in a net savings of $46,100 in 2008.

A range of transmission options were considered by City Light. One option, a $28 million transmission contract with Avista was considerably more expensive, where an option of a $10.5 million proposal for the City to construct new facilities was less expensive. The proposed contracts are $11.3 million in net present value terms. Although the build option is marginally better on a straight present value basis, it exposes City Light to the cost risk and regulatory risk associated with building new transmission facilities. The contract option also resolves the dispute with the Grand Coulee Projects Hydroelectric Authority and results in a more efficient use of the region’s existing transmission facilities.