This contract is the latest for the two companies. In 2007 PSE signed a 20-year power purchase agreement with Iberdrola Renewables for 50 MW from its Klondike III Wind Power Project also located in Oregon.
Eric Markell, PSE senior vice president and chief strategy officer says, “Independent power producers like Iberdrola Renewables play an important role in our overall power-supply mix. This contract gives our customers reliable power from an environmentally responsible, clean-burning facility.”
PSE currently self-generates about 46 percent of its customers’ electric energy, with the rest purchased from other power producers. Under the new contract, PSE will receive 100 MW of power from Iberdrola’s single-cycle generating facility in Klamath Falls, although Iberdrola has the option to supply the energy from its adjacent, 506-MW Klamath Cogeneration Plant.
Martin Mugica, executive vice president of Iberdrola Renewables says his company “is delighted to add PSE to its growing list of repeat customers. We can provide other Northwest utilities a variety of peaking and base load capacity products from this nationally recognized clean gas-fired resource.”
PSE continues to evaluate proposals to meet its growing need for peak and off-peak power going forward, and plans to issue a new power-supply Request for Proposals later this year. The utility’s 2011 draft Integrated Resource Plan estimates that the utility will need to acquire about 2,600 MW of additional power capacity by 2020 to meet its customers’ peak wintertime electricity demand. PSE also reports its capacity need—driven by expiring purchased-power contracts, potential retirement of aging PSE power plants, and long-range population growth—will increase to about 4,200 MW two decades from now.
Puget Sound Energy is Washington State’s oldest local energy utility, serving more than one million electric customers and 750,000 natural gas customers in 11 counties. For more information, visit www.PSE.com.
Iberdrola’s Klamath Cogeneration Plant on April 26 was recognized with Oregon OSHA’s VPP Star status, the highest designation for safety and health excellence from the Voluntary Protection Program (VPP) in the United States.