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Puget Sound Energy and Chelan County PUD have entered into a fresh agreement for the procurement of renewable hydropower from the PUD's two dams situated on the Columbia River.

Under the terms of the contract, the utility serving the Seattle area will purchase a fixed five percent of the overall output from Chelan PUD's Rock Island and Rocky Reach dams for a period of five years. This procurement arrangement is part of an annual auction conducted by the PUD, where interested utilities and energy trading companies submit their offers. PSE emerged as the winning bidder for this round, providing the best offer to Chelan PUD.

Commencing from 2024 until 2028, this five-year contract ensures that PSE receives a consistent supply of clean hydropower from Chelan. Simultaneously, it enables the PUD to sell any excess power it generates on the open market, while granting PSE the opportunity to utilize pollution-free energy. This contract serves as a complementary addition to an existing agreement between the two utilities. In February, PUD commissioners approved a long-term contract that involved the sale of 25 percent of the PUD's total power generation to PSE.

PUD spokesperson Rachel Hansen emphasizes that these contracts safeguard the PUD from market fluctuations and uncertain conditions. Hansen further notes that securing the current market rate through this agreement helps protect the PUD's financial stability, particularly in the face of risks such as volatile market conditions or periods of low water supply. Additionally, the PUD can maximize the value of its surplus power sales due to its carbon-free nature and the PUD's ample power generation capacity.

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