Seattle City Councilmember Bruce Harrell

The Seattle Times printed an article in the February 4th edition discussing the City Light hydroelectric facility in Pend Oreille County. This is a very important facility to the citizens of Seattle, as 40 percent of our clean power derives from this location. Our other hydroelectric facilities on the Skagit River in Whatcom County produce 20.5 percent of our City’s power. It is the clean power produced by these facilities that make it possible for City Light customers to have the lowest rates in the country (relatively speaking). The “meat” of the story in the The Times is that Pend Oreille County is seeking triple the amount which it is already paid by City Light as a result of “impact payments” it is required to make. Following is an explanation of how the impact agreements work and my thoughts on the issue.

In order to compensate Pend Oreille and Whatcom Counties for the impacts of the hydroelectric facilities, the City of Seattle is subject to impact fees which cover the costs and impacts associated with the dam. These impacts include, but are not limited to roads, public safety and schools. Whatcom County has approved the renegotiated terms of their impact agreement. Over a ten year period, Whatcom will receive $7.8 million which averages out to approximately $780,000 annually. Under the current agreement, which expired December 31, 2008, Pend Oreille County received a total of $11.6 million for the ten year contract. This averages out to approximately $1.2 million per year. Historically, when these impact agreements are renegotiated, inflation is taken into account and then applied to the agreement, which usually results in a small increase as to what City Light pays.

I understand the argument that Pend Oreille County officials are making and I am sensitive to the economic problems they face. The entire country is facing economic challenges. We believed the impact to roads, public safety and schools are adequately covered by the amount which the City of Seattle pays Pend Oreille County. It can also be argued that the Boundary Dam Facility creates a positive economic impact. The facility employs approximately 30 employees and City Light sells wholesale electricity to the Pend Oreille County Public Utility District at cost and by City Light estimates, this has resulted in approximately $20 million in savings to the customers of Pend Oreille.

Given what the City of Seattle already pays Pend Oreille County and for the reasons specified above, I believe that the City Light is taking a reasonable position and I support their efforts as these negotiations continue. I look forward to a fair outcome for the people of Pend Oreille County because I know they are grappling with, to the best of their abilities, the tough economic times that we all face.

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