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More Wind Power Options in Washington

January 27, 2004

BPA ready to shape wind for low price
by Marc Krasnowsky from ESW member NW Energy Coalition, published in the NW Energy Coalition Report

Bonneville Power Administration's (BPA) much-anticipated program to "shape" wind-generated electricity with hydropower is finally in place, in the form of two new products.

On Jan. 13, BPA announced the signing of a precedent-setting agreement with Longview, WA-based Cowlitz County Public Utility District. Under terms of the contract, BPA will provide backup for the wind power Cowlitz gets from the Nine Canyon energy project in Kennewick, WA.

Cowlitz is buying 2 megawatts of wind-generated power from Nine Canyon. Under an agreement known as Network Wind Integration Service, BPA has agreed to take Nine Canyon's output into its system and deliver a steady, predictable supply of electricity to the utility, regardless of when the wind blows.

The Network Wind Integration Service is designed for BPA's publicly owned utility customers. Once a customer agrees to acquire the wind power and any necessary transmission services, BPA will use the flexibility of the hydro system to integrate the scheduled wind output with the customer's load.

The energy provided by the wind generator will offset an equal amount of federal power the customer would have had to purchase from BPA. BPA's Power Business Line will charge $4.50 per megawatt-hour for the service.

"In essence, the hydro system acts as a big battery," explained Patrick Mazza, research director of Climate Solutions. "When the wind is blowing and generating electricity, water can be held behind the dams for release when the sky is still."

For investor-owned utilities that want to purchase wind power but don't want to manage the hour-to-hour variability associated with the wind output, BPA is offering a Storage and Shaping Service. BPA will store the hourly scheduled wind generation in the federal system, then deliver it to the purchasing utility a week later in flat peak and off-peak blocks. The price for this service is $6 per megawatt-hour, not counting transmission.

BPA Administrator Steve Wright said integrating wind generation is an important part of the agency's strategy to encourage development of renewable energy resources in the region.

Cowlitz general manager Denny Robinson said the shaping program was crucial to his utility. "A purchase of 2 megawatts of wind power is a small but important step for us," he said. "BPA's involvement is imperative to this process of diversifying the PUD's energy portfolio."

A chorus of spokespersons for Northwest public-interest groups joined Robinson in singing BPA's praises:

  • "These services represent a tremendous advance for renewables in the Northwest," said Rachel Shimshak, executive director of the Renewable Northwest Project (RNP). "We hope all utilities, public and private, will consider diversifying their energy portfolios with clean wind energy."
  • Ralph Cavanagh, co-director of the Natural Resources Defense Council's energy program, called program "an enormous step forward for wind power, and an invaluable national precedent, for which all of us salute BPA and RNP."
  • "The program underscores that when it comes to bringing new clean energy technologies on line, BPA is on the cutting edge among U.S. utilities," said Climate Solutions' Mazza.
  • "Hydropower is an excellent back-up for wind generation," said NW Energy Coalition executive director Sara Patton. "Now there's no good reason to ignore the benefits of renewable resources -- local jobs, economic development, rate stability and clean air, land and water."

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