"I-937 $50 / MWh Penalties"
Initiative 937 states "(a) A qualifying utility shall be considered in compliance with an annual target created in section 4(2) of this act for a given year if the utility invested four percent of its total annual retail revenue requirement on the incremental costs of eligible renewable resources, the cost of
renewable energy credits, or a combination of both"
The PUD have two generation assets that quality under I-937. The first is Nine Canyon Wind, which generates 6MW. The second the cogen biomass facility at Grays Harbor Paper, which generates 15.5MW.
As you can see from the table below the incremental cost of power (using the BPA Utility rate) in 2007 was $7.3m, which represents eleven percent of retail revenues, far in excess of the required four percent ($2.7m). In fact the incremental cost of Nine Canyon Wind alone is almost four percent of retail revenues.
The commisioners continue to raise the spectre of $50/MWh fines whilst ignoring the fact that they will not have to pay any fines.
| Item | Amount | Calculation | Source | |
| based on 2006 AR | ||||
| A | Retail Sales (MWh) | 992,831 | GHPUD 2006 AR p. 37 | |
| B | Retail Revenues ($) | 66,332,000 | GHPUD 2006 AR p. 37 | |
| C | 4% of Retail Revenues | 2,653,280 | 4% x B | I.937 Section 5 part I(a) |
| 2005 Levelized Costs ($/MWh) | ||||
| D | Wind | 75 | IEEE / NWPPA | |
| E | Biomass | 62.5 | IEEE / NWPPA | |
| Power Rates | ||||
| F | Wholesale | 27.33 | BPA Current Published Rates | |
| G | Industrial | 45.08 | BPA Current Published Rates | |
| H | Nine Canyon (6MW) | 3,942,000 | 6MW x D x 8760 | |
| J | GHPaper (15.5MW) | 8,486,250 | 15.5MW x D x 8760 | |
| K | Cost | 12,428,250 | H + J | |
| L | Cost @ BPA Utility rate | 5,147,332 | 21.5MW x F x 8760hrs | GHPUD AR.2006 p 4 |
| M | Incremental Cost | 7,280,918 | K - M | |
| N | Cost @ Industrial Rate | 8,490,367 | 21.5MW x G x 8760hrs | |
| P | Incremental Cost | 3,937,883 | K - N |