Grant County PUD Confident in Dam Relicensing Position.

Business Editors, Energy Writers

EPHRATA, Wash.--(BUSINESS WIRE)--Oct. 29, 2001

Grant County Public Utility District officials reiterated their confidence that the PUD will retain the federal license for its two Columbia River dams, despite an action today by competitive interests to file their own license application.

"Grant PUD took the risks nearly 50 years ago to build these dams -- and ever since, we have operated them wisely and in the interests of our local residents and other utility customers throughout the Pacific Northwest," said Don Godard, the PUD's general manager.

"We are convinced that as the Federal Energy Regulatory Commission (FERC) continues to review our record, that FERC will agree that Grant County PUD has earned the right to have its operating license for the Wanapum and Priest Rapids hydroelectric developments renewed for decades to come," he added.

In particular, Godard pointed to the commitments made and actions taken by the PUD to protect salmon migrating through the stretch of the mid-Columbia where the dams are located. The PUD is responsible for balancing electricity generation with other uses of the river, including preservation of Native American cultural values, recreation, salmon protection, and other environmental concerns.

In today's action, PacifiCorp, a part of foreign-based ScottishPower, and the Yakama Indian Nation indicated they have filed an Initial Consultation Document (ICD) with FERC, a preliminary step in the licensing process. Grant PUD filed its ICD more than a year ago.

"This initiative by a foreign-owned utility represents a misguided and unnecessary effort that will waste millions of dollars of ratepayers' money," said PUD President William Judge. "This challenge will not add any new power or reliability to the region, nor will it improve service or reduce power costs for customers."

"This challenge, if successful, would only serve to loosen the region's grip on its own power future," Judge added, "and turn it over to a multinational corporation with a much different agenda than a homegrown, locally-owned utility whose management answers to the needs of Northwest citizens. Our goal is to meet our local needs first and share the benefits with the region in the next license period."

Under FERC's licensing process, Grant County PUD and any challengers have two years to complete and file a formal application. Applications on the Priest Rapids Project are due by October 31, 2003. Grant PUD has been fully engaged in a participatory relicensing process for several years already, and will receive preference as the incumbent owner. The FERC license for the two hydroelectric developments, collectively licensed as the Priest Rapids Project, expire in 2005.

Grant PUD has been the license holder since it built the dams, starting with construction of Priest Rapids in 1956 and followed by Wanapum in 1959. More information on Grant PUD and the Priest Rapids Project can be obtained at the PUD website, www.gcpud.org.