This new contract provides us the ability to adapt to changing market conditions and aids in the successful management of our loads and power supply portfolio, to maintain system reliability, rate stability and customer satisfaction. The flexibility enables us to maximize savings in the market as both gas and power prices fluctuate, and diversifies our portfolio for a more sustainable future as the federal hydro and regional transmission systems reach capacity.

Under Initiative 937, Washington state law complicates the job of balancing energy load while integrating additional renewable resources into our power supply portfolio. Wind power is the most available resource allowed under the law and, though plentiful in the region, it is an intermittent resource and is often not available when it is needed most. This influx of new, highly variable generation has put additional strain on the region’s federal hydropower transmission systems and calls into question where to invest limited capital to ensure infrastructure growth meets future customer growth.

Complementing the renewable resource requirements are new mandates for additional spending on conservation. The law requires utilities to pursue all cost-effective conservation measures, including equipment retrofits, efficient lighting upgrades and sustainable building practices.

At a cost per kilowatt-hour, conservation is far and above the cheapest resource available to our customers. Every kilowatt hour saved by one customer is one less kilowatt hour created through capital investments in additional generation or transmission.

As we consider infrastructure and future resource development, it is essential that energy efficiency be at the core of our long-term plan. It is also one way our customers can directly manage their electric service costs as well as contribute to the sustainability of the energy supply.