With California looking to boost its renewable-energy use, Cowlitz PUD could benefit and ease future rate increases.

California Gov. Arnold Schwarzenegger signed an executive order last week requiring the nation’s largest state to get 33 percent of its energy from green sources, such as wind, solar and geothermal, by 2020. That’s up from an earlier 20 percent mandate.

With California’s population of about 38 million, Washington utilities fear the added energy demand will cause prices for renewable energy to shoot up, according to The Seattle Times, at a time when they’re scrambling to fulfill their own state mandate for renewable power, Initiative 937.

The 2006 voter-approved law says that 3 percent of a large utility’s power load must come from renewable energy by 2012. The rule jumps to 6 percent in 2016 and 15 percent in 2020.

Cowlitz PUD officials say they’re better prepared to meet the standard than other utilities because they’ve already made big strides in wind-energy development.

Cowlitz PUD launched its White Creek wind farm in Klickitat County in 2007 along with three partner utilities. The Harvest Wind project, which is about 40 percent smaller, went online about a year later. Combined, the two projects will help the PUD meet the I-937 requirements for 2012 and nearly cover the requirement for 6 percent renewables by 2016.

“Those that have got in ahead and developed early would be in a good position,” PUD spokesman Dave Andrew said Monday. “This action in California could drive up the price of development significantly.”

The PUD has been selling its share of White Creek and Harvest Wind — about 40 megawatts a year, depending on the wind — on the open market until I-937 requirements kick in.

In the first 14 months, the PUD sold its excess wind power for about $5 million, which has been set aside to offset future rate increases, Andrew said.

A high percentage of those sales have been to California utilities, Andrew said, but he did not have specific numbers. PUD wind energy sales to California could increase as a result of Schwarzenegger’s order, he said.

Demand for renewable power comes at a good time for the PUD, which is facing a 3 percent to 6 percent rate increase because of a jump in wholesale rates from the federal Bonneville Power Administration.

The BPA, from which Cowlitz buys 90 percent of its power, is raising its wholesale rates 7 percent Oct. 1. That adds $7.5 million in expenses in 2010 to the PUD’s budget.

In the fall of 2012, the BPA will no longer sell power to meet utilities’ growth, meaning Cowlitz PUD and others will need to generate and purchase more of their own power. That could lead to more volatile rates, which the PUD hopes to stabilize with its sales of renewable power.

IF YOU GO

What: Public hearing on Cowlitz PUD rate increase, expected to range from 3 to 6 percent

Why: The federal Bonneville Power Administration is raising wholesale power rates by 7 percent.

Where: Cowlitz PUD main auditorium, 961 12th Ave. in Longview.

When: 7 p.m. Tuesday (Sept. 22).

Related articles:

California's appetite for green power could boost rates here

Cowlitz PUD moves ahead with Harvest Wind plan  (Aug. 27, 2008)

Cowlitz PUD considering expansion at White Creek wind farm  (May 21, 2008)