Background

The hydro plant can generate up to a fixed amount of power (180 kW). This amount is limited primarily by available water rights and the existing hydro plant efficiency.

The Stehekin Hydro Project is allowed to use a limited amount of water. The amount of water flowing drives how much hydro power can be generated. It is authorized by the Department of Ecology to divert 17.86 cfs of water from Company Creek under two water rights.

When the Stehekin community needs more power than the hydro can provide, the secondary diesel generator is turned on. D2 can provide up to 75 kW and must be turned on for at least 30 minutes. So, even a quick moment of high power demand means D2 runs for 30 minutes.

Diesel generators reduce local air quality and are costly to fuel and maintain. Increased reliance on D2 could impact rates in Stehekin.

The two back-up diesel generators can only be used in two cases:

1. During an emergency where the hydro is unavailable or

2. During planned maintenance that requires the hydro to be offline

They cannot be used to cover community power needs in any other situation. These generators cannot be switched on without power interruptions and are expensive to maintain and operate.

The Stehekin Hydro Project must have a permit to run. These permits include terms and conditions, as well as an Air Quality Permit that sets air quality standards, which limit the use of back-up generators.

The PUD has operated the Stehekin Hydro Project under a special use permit originally issued by the Forest Service in 1966, and in subsequent years by the National Park Service (NPS). The PUD is currently working with the NPS to convert this to a right-of-way permit, as now required by NPS. The PUD’s goal is to secure a permit that allows the Project to remain economically viable.

Any solutions implemented will require cost sharing with customers, and more expensive solutions could impact rates in Stehekin.

In addition to the proposed solutions presented in this Open House, the PUD may need to implement policy changes to help keep demand within the operating range of the hydro project. Policy changes would require PUD Board approval, and coordination with Chelan County and the National Parks Service to accommodate future growth in the valley.

Chelan PUD coordinates with other agencies to ensure the continuing viability of the Stehekin power grid and the ability to serve the PUD’s customer-owners in that location.

For example, the PUD is not charged with community growth planning. Chelan County has the authority to manage growth and development, and the PUD submits comments and recommendations for plans such as the Comprehensive Plan or the County's Proposed Regulations for Short-Term Rentals.

The PUD is also working closely with the National Park Service to provide recommendations for energy conservation at their existing and future planned facilities in Stehekin.