CWEB.046/OCTOBER.28.1999

# Renewables Commitment

### Seattle City Council Directs City Light to Invest At Least $2 Million
Annually in New Renewable Resources as Centralia Replacement

Seattle City Light is abandoning coal-fired energy resources and moving toward new renewable energy.

The Northwest's largest publicly owned utility will invest at least $2 million annually in new non-hydro renewable resources, under the terms of a resolution unanimously adopted by Seattle City Council Oct. 4. This renewables commitment is intended as a replacement for City Light's 8-percent share of the Centralia coal-fired plant in west-central Washington. In May, the eight-utility consortium owning the 1,330-megawatt-capacity facility announced sale of the plant and adjoining coal mine to Transalta Corp.

Centralia provides 5.4 percent of Seattle's system generating capability, or 107.4 MW of capacity. With the sale, City Light would become an all-renewable energy utility in the resources it owns and operates, according to the resolution. (The municipal utility gets some power from other sources that include non-renewable energy.)

Although the form of Seattle's new renewables investment is not yet known, one possibility floated by City Light is swapping non-firm hydropower for energy from new renewable resources in California.

"I don't think we want to take the limited view and measure our success in new renewables by how many dollars we spend," said City Light spokesman Larry Vogel, who added Seattle would look for "ways we can leverage our non-firm energy to encourage development of renewables elsewhere . . . The view is that we're talking about a renewable that would displace a [fossil fuel-fired] thermal plant. Clean air there is clean air here when we're talking about global warming and degradation.

"The broad view," Vogel continued, "is the City Council is sending us the message they want to make sure renewables are part of our power portfolio."

New Renewables Resolution

The resolution originated in the council's Utilities and Environmental Management Committee, which is chaired by council member Margaret Pageler, sponsor of the resolution that passed the full council by an 8-0 vote.

It begins by "reaffirming the City's commitment to conservation and renewable resources as the first priority for energy resources to replace the energy currently provided by the Centralia coal plant . . ." The resolution acknowledges "significant benefits" gained from City Light's part-ownership of Centralia, and states that a sale "would be economically desirable and can be accomplished while ensuring that the new owners will operate the plant in an environmentally responsible manner." Transalta has pledged to install pollution control equipment to reduce Centralia sulfur dioxide emissions by 90 percent, as previously agreed to by the plant's current eight owners.

The resolution goes on to cite Seattle's "long history of developing and using environmentally responsible renewable resources to serve Seattle ratepayers"--the utility's oldest currently operating hydropower project went into service in 1904--and its "proud record of being a model for energy conservation, environmental responsibility and concern for future generations."

Consequently, according to the resolution, "the plan for replacement energy for the Centralia coal plant should be based on these qualities and historic record, and revenues received from the sale of the share of the Centralia coal plant should be used in ways which will further this mission."

The resolution directs City Light superintendent Gary Zarker to invest a minimum of .49 percent of Seattle's annual revenues, about $2 million, for "new non-hydro renewable resources as part of the Strategic Resources Assessment Update. "this amount reflects the new renewables target recommended by the Regional Review.--Mark Ohrenschall and Jude Noland

More Information:

- Seattle City Council resolution on new renewable energy resources

Return to Contents

Copyright ©2004 Energy NewsData Corporation