Kyle Roadman, EPUD General Manager
Happy Fall, Emerald Customer-Owners —
The kids are back in school, the leaves are changing colors, and football is on TV. We’re in the homestretch of the year. Before we hit the finish line, however, we’re working hard at EPUD to complete several major projects to improve reliability and customer service.
We also recently published our 2025 Budget Proposal, detailing our plans for next year. You can read all about it here and please feel free to reach out with any questions.
Today I want to begin highlighting what might be the most important issue facing Northwest utilities (and our customers) in the years ahead: the uncertain future of our regional power supply system. I’m taking inspiration from my fellow GM Rick Dunn, who covers this topic with a focus on Washington state. My hope is to bring an Oregon perspective and explain the potential impact on EPUD customers.
This is a big topic and I’ll be breaking it into multiple parts. First, a little history.
Part 1: The Northwest Power Supply System: A Crown Jewel
For more than 80 years, the Northwest has benefitted from a diverse mix of power supply resources, anchored by our unique hydroelectric system along the Columbia River Basin. Built between the 1930s and 1970s, the Northwest hydro system provides low cost, reliable, carbon-free electricity when it’s needed the most.
It’s no stretch to say this cheap hydroelectricity has been the key driver of economic growth and prosperity in the region over the past century.
Hydroelectric Projects within the Federal Columbia River Power System (FCRPS)
EPUD purchases most of our power from the Bonneville Power Administration, a federal agency that markets the output from the Columbia Basin projects. As a public power utility, we have what’s known as a “preference” right to this low-cost power and it’s a key reason our rates are far lower than most utilities in the country.
Regionally, this hydroelectric system has long been complemented by a mix of thermal resources: coal, natural gas, and nuclear power plants. This resource diversity keeps overall costs low and leads to stellar reliability. The reason? These legacy resources provide power 24×7 and on-demand when usage in the region is the highest.
The chart below shows the Northwest resource mix from 2002-2019.
Source: The 2021 Northwest Power Plan (published by the Northwest Power and Conservation Council).
https://www.nwcouncil.org/fs/17680/2021powerplan_2022-3.pdf
As indicated, hydroelectric power has long been the largest resource, followed by energy efficiency, coal, and natural gas. Other zero-emission resources, including wind, solar, and nuclear, make up the rest of the portfolio.
This resource diversity has allowed the Northwest to achieve a strong balance between energy affordability, reliability, and environmental responsibility. These pillars can be pictured as a three legged stool that must be kept in balance to maintain a system that meets the needs of Northwest citizens:
Hat tip to fellow GM Rick Dunn for this visual
Historically, our region has done well to maintain this balance. In fact, one independent study performed in 2021 found the states of Washington, Idaho, Oregon, and Montana all top performers when ranked according to the three pillars:
Source: Electric Utility Performance: A STATE-BY-STATE DATA REVIEW (published by the Citizens Utility Board of Illinois).
https://www.citizensutilityboard.org/wp-content/uploads/2021/07/Electric-Utility-Performance-A-State-By-State-Data-Review_final.pdf
What might happen then if one of these pillars begins to be prioritized over everything else? Unfortunately, over the past decade, Northwest policymakers have been running just such a grand experiment. The effects of these actions are only beginning to play themselves out, but the warning signs are real and significant.
In my next post, I’ll discuss how our Northwest power supply system is slipping out of balance and what this could mean for EPUD customers.
Please stay safe,
