What are PSE’s current energy projects and partners in Montana?

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PSE has been a partner in Montana's energy economy dating back to the 1970s and construction of the Colstrip Power Plant. That continues today: just last year, PSE completed its Beaver Creek Wind Project in Stillwater County and is currently developing the Battle Butte Solar Project also in Stillwater County. PSE also has an agreement with Energy Keepers, Inc., the tribally owned corporation of the Confederated Salish and Kootenai Tribes for hydroelectric power, and an agreement with NextEra for power from Montana’s largest windfarm, Clearwater Wind, and an agreement with Clearway Energy Group for power from the Haymaker Wind Project. PSE looks forward to continuing to partner with Montana as part of its all of the above energy economy – learn more about these projects here.

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Why is PSE interested in developing energy projects in Montana?

 

Montana’s energy resources are well matched to PSE’s demand profile. For instance, Montana wind has a high production rate that is especially valuable during extremely cold weather in the Pacific Northwest, when high pressure systems mean that Washington wind farms do not produce much energy. Additionally, projects like Battle Butte Solar and Beaver Creek wind are strategically positioned to utilize existing transmission infrastructure on the Colstrip Transmission System. As PSE works to meet statutory clean energy obligations, Montana continues to play an important role by providing a diverse supply of clean, reliable and renewable energy. 

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How is PSE contributing to Montana?

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PSE has been a partner in Montana's energy economy since Colstrip's power generating units were first built. PSE has purchased millions of tons of Montana coal, which has resulted in hundreds of millions in contributions to the Montana Coal Trust Fund for the benefit of all Montanans. PSE has contributed more than $270 million in property taxes and taxes related to wholesale energy transactions and electrical energy in the last 25+ years alone. 

 

PSE’s Beaver Creek Wind Project is expected to generate approximately $1.8 million in local and state tax revenue per year and more than $7 million in impact fee payments to Stillwater County. The project also generates new revenue for participating landowners and creates good paying local jobs.

 

PSE also has power purchase agreements with the Haymaker Wind Project, Clearwater Wind Project, and Energy Keepers, Inc. Hydroelectric Project – homegrown projects that directly contribute to local economies and generate tax revenue. These projects are financially viable due to Montana’s export energy economy and energy offtakers, like PSE, who buy the power.

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What is a power purchase agreement?

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A power purchase agreement (PPA) is a contract between two parties, one of which generates electricity (the seller) and one of which is looking to purchase electricity (the buyer). In this context, PSE is the buyer and is looking to purchase electricity. The PPA defines all of the commercial terms for the sale of electricity between the parties. PSE has PPAs with Haymaker Wind Project, Clearwater Wind Project, and Energy Keepers, Inc. Hydroelectric Project. These projects contribute to local economies and state tax revenue and are financially viable due to Montana’s export energy economy and energy offtakers, like PSE, who buy the power. Learn more about these projects here. 

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How can energy producers partner with PSE?

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To meet the growing energy needs of our region in the coming years, PSE acquires new sources of energy through Requests for Proposals (RFP) in accordance with Washington state laws. 

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PSE is committed to a procurement process that is accessible and fair for all bidders. PSE encourages all bidders that are able to meet an RFP’s requirements to participate, including bidders representing minority-, women-, disabled- and veteran-owned businesses. PSE encourages bidders interested in partnering with PSE to support supplier diversity through inclusive, competitive procurement processes. 

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Learn more about how PSE procures energy here.​​​

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What is the Colstrip Impacts Foundation?

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The volunteer-led Colstrip Impacts Foundation committee is responsible for grant making from two funds at the Montana Community Foundation - $2.5 million in a permanent fund and $7.5 million in a nonpermanent fund- received from Puget Sound Energy to support community transition and opportunity planning for Colstrip. Learn more here.

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What was PSE’s role in creating the Colstrip Impacts Foundation?

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PSE was the first owner of the Colstrip power generating facility to set aside funding to support community transition and opportunity planning efforts. PSE voluntarily secured $10 million through its 2017 General Rate Case to create the Colstrip Community Fund. In establishing the fund, PSE engaged with the community and participated in Colstrip Community Impact Advisory Group (CCIAG) planning meetings in the City of Colstrip and attended community listening sessions in Colstrip, Forsyth and Lame Deer over the span of 10 months. Ultimately, the CCIAG developed a plan that was approved by the Colstrip City Council and the Rosebud County Commission on December 11, 2018. The plan’s guidelines are to use the Colstrip Impacts Foundation to address:

· Workforce needs

· Community Development

· Economic Development

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What has PSE done to ensure Colstrip will be properly decommissioned and cleaned up?

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Puget Sound Energy is committed to paying its share of prudent decommissioning and remediation costs associated with Colstrip at the appropriate time. PSE employs a variety of tools and funding mechanisms to responsibly plan for the future:

· Utilizing legislative and regulatory mechanisms, PSE was the first owner to establish a separate funding mechanism for cleanup. 

· Through this funding mechanism, PSE placed $95 million in hydro-related Treasury Grants into a retirement account to fund and recover prudently incurred decommissioning and remediation costs for Colstrip Units 1 & 2. 

· An additional $240 million stemming from existing federal tax benefits has been set aside for customer costs associated with Colstrip Units 1-4 including decommissioning and remediation. 

Taken together, this kind of forward planning ensures that Montanans will not have to worry about paying for PSE’s portion of decommissioning and remediation costs associated with Colstrip. 

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What is the Colstrip Transmission System?

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The Colstrip Transmission System was built in the early 1980s to move power from the Colstrip Power Plant to transmission systems in western Montana. The Colstrip Transmission System is jointly owned by NorthWestern Energy, Avista Corporation, Portland General Electric, Puget Sound Energy, and PacifiCorp. 

 

The Colstrip Transmission System is made up of two 500 kilovolt segments. The first runs from Colstrip to Broadview and the second runs from Broadview to Townsend. At present, power from the Colstrip Transmission System moves across the Bonneville Power Administration’s (BPA) transmission system west of Townsend before reaching local utility customers and BPA’s main grid.

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