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Many
in Seattle probably know that our state is the leading hydroelectric power
producer in the nation. However, many would be surprised to learn that hydroelectric
power, also known as hydropower or hydro, is not considered a renewable
resource under the state’s Energy Independence Act. A few Republican State
Senators and House Representatives would like to amend the state’s constitution,
arguing that the exclusion is driving up energy prices. This in turn makes
Washington State less attractive to business owners and potential investors.
House
Joint Resolution 4200 (and the similar Senate Bill 5294) seeks to recognize
hydropower as a renewable resource. Introduced by Representative Haler (R-Richland), HJR
4200 aims to include hydropower into the definition of renewable resources, and
thus be counted toward the required percentage stated in the Energy Independence
Act.
While
it seems like a no-brainer to list hydropower as a renewable resource, this
bill’s motive is more convoluted than it appears. In 2006, Washington State
voters approved Initiative 937, requiring utilities
with 25,000 customers or more to
buy at least 3% power from eligible renewable resources (e.g., wind, solar, but
excluding hydroelectric) by 2012. The percentage will increase to 9% in 2016 and
to 15% by 2020. The initiative, which became the Energy Independent Act, aimed
to increase investment in renewable power sources while reducing our dependency
on existing sources such as gas, coal and hydro. Hydroelectricity was excluded
from the list of eligible resources because 72% of power in the state comes
from hydropower plants. Therefore, including hydropower in the eligible list
actually defeats the original purpose of Initiative 937.
There
is a good reason why we need to diversify our power supply. According to the Washington
State Integrated Climate Response Strategy report published
in April 2012, climate change will continue to alter snowpack and stream flow
of the region. The warmer climate will lead to less water naturally stored in
snowpack and glacier. At the same time, earlier snow melt in spring will lead
to early winter peak flow and less summer flow. It is estimated that summertime
hydropower production will drop by approximately 9% to 11% by 2020. With
population growth and increasing summer temperature, there is a great urgency
to develop other renewable energy sources to satiate future power needs.
What
about the price of electricity in the region? A National Public Radio
report on October 2011 ranked Washington State third in terms of lowest power cost
in US, behind Idaho and North Dakota. Similar to Washington, Idaho State
produces most of its power from hydroelectric dams. With virtually no fuel
input and the investment cost of dams spread-out across decades, both Idaho and
Washington are able to keep its power cost low. As for the claim that cost of
power has been increasing, a report by the Bureau of Labor Statistics on January
2013 shows that Seattle residents
pay less for electricity than most US residents. For the past 5 years,
Seattle’s average electricity priced 27% to 38% below national average.
Without a doubt,
hydroelectric power is a renewable power source under current condition. The
main question is: will it be renewable in the future? Maybe it is time we stop
worrying about company profits in the short term, and be more concern about our
energy usage in the long run.
About the Author
ChunHo Chen is a full time Civil Engineer at Osborn Consulting, Inc., and a part time MBA student at University of Washington Foster School of Business. He was born in Hong Kong, studied high school in Singapore, and now resides in Seattle, Washington.
I feel the author is being a little disingenuous with his quote's, "...shows that Seattle residents pay less for electricity than most US residents." That answer is not what the statement asked. The rates have increased in the PNW and you cannot rate them against the remainder of the country. I do not care about the rest of the country. I care about MY state. MY community, do NOT tell me that I have it better than any other part of the country or world. The Energy Independent Act requires us to buy from wind producers that borrowed money from the tax payers at a very poor rate of return for state residents and mandates that when we do have excess water for hydro power; we still must buy from the wind producers at a higher cost. THAT is where the higher cost of is coming from.
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