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Economic and dam related articles

Port Townsend Paper Contract Extended

by Staff
BPA Journal, January 2013

BPA and Port Townsend Paper Corp. signed an amendment to the existing power sales contract that provides one of the largest employers on the Olympic Peninsula another nine years of low-cost federal power. The amendment extends the term of the contract through September 2022, preserving 300 family wage jobs in a community of 8,300 residents while providing BPA and the Northwest financial and operational benefits.

The amendment was signed during a ceremony in December at the Northwest Maritime Center in Port Townsend, Wash.

"Congratulations to BPA and Port Townsend Paper for this ongoing successful partnership," said Washington Gov. Chris Gregoire. "These 300 jobs make the world of difference to these families and the economy of the peninsula."

Port Townsend Paper Corp.'s current contract with BPA runs through Aug. 31, 2013, with the amendment starting the following day. It has BPA continuing to provide 20.5 average megawatts. However, BPA expects the newly formed Jefferson County PUD to take over serving 8.5 average megawatts of Port

Townsend Paper's load in July 2013. In that case, BPA would continue to serve the remainder of the mill's load, approximately 12 average megawatts, enough electricity to serve more than 8,000 homes for a year.

Roger Loney, Port Townsend Paper president, said, "Today we are celebrating the signing of a new nine- year power supply contract with BPA, which is critical for additional growth for the mill."

In addition to the financial benefits, the power sales contract requires Port Townsend Paper to make available to BPA 10 percent of the power delivered to the mill should BPA need it to meet its obligations during a system disturbance.

"For more than 65 years, this important foundation of the Olympic Peninsula economy has operated using low cost, zero air-emissions electric power from the dams on the Columbia and Snake rivers," said Steve Wright, BPA administrator. "Now, after years of debate, we are committing to at least another 10 years of service that we believe creates a symbiotic effect of benefiting ratepayers across the Northwest as well as this community."

Port Townsend Paper Corp., celebrating its 85th anniversary this year, has received power from BPA since 1947.

Port Townsend power purchase contract [Regionwide]
BPA and Port Townsend Paper Corp. signed an amendment to extend the existing power purchase contract in December. The amendment will provide Port Townsend Paper with another nine years of power, extending the term of the contract through September 2022, potentially preserving about 300 family wage jobs. For information, go to

Port Townsend Paper Contract Extended
BPA Journal, January 2013

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