Commission recap, 5/26/2026 -- New study says energy shortage looms without natural-gas backup, reforms. More...

Commissioners learned Tuesday that a study commissioned in early 2025 by Pacific Northwest utility companies, including Grant, Chelan and Douglas PUDs, shows the region faces an elevated risk of electricity blackouts today and into the future unless states extend deadlines for transitioning to renewable energy, ease obstacles to building more transmission lines and/or allow natural gas be used as an interim backup energy supply.

Washington state law requires that the state’s power supply must be 100% carbon free by 2045.

San Francisco-based Energy and Environmental Economics (E3) studied the region’s “resource adequacy” needs from 2025 to 2045, listing five key findings:

• Forecasts for increasing demand for electricity and mandated closures of coal and other carbon-based energy plants create a resource gap that grows to 9 gigawatts by 2030 and 14-18 gigawatts by 2035. Nine gigawatts is approximately the energy load needed to power the entire state of Oregon. 

• In the near term, the region is not on track to fill the gap, due to:
  • Rising electricity needs along with permitting and other institutional barriers to building more transmission lines and other electric infrastructure.
  • Sources of renewable energy and energy storage are either intermittent, like wind and solar, or haven’t sufficiently evolved to replace coal, oil and other carbon-producing but available-on-demand energy sources.
  • Delays in building more available-on-demand “base” generation, like clean nuclear, hydro and geothermal.

• In the long run, it’s possible to achieve deep carbon reductions while maintaining grid reliability and affordability by investing in a clean energy portfolio that includes natural gas.
  • Natural gas generators used to cover energy shortfalls would most likely only be needed during prolonged cold or hot spells when river flows reduce hydropower generation.
  • A balanced portfolio of renewable energy and, during energy peaks, natural gas will achieve a carbon (greenhouse gas) reduction of more than 90% at relatively low cost and serve as a bridge until additional emerging, clean-energy technologies become commercially viable enough to fill the gap.

• Using natural gas to cover energy peaks is among the most cost-effective, long-term strategies for a reliable energy supply and reduced carbon emissions. “Demand response” – cutting service to some customer groups during peaks – isn’t enough, alone, to fill the gap.

• More transmission capacity into Washington and Oregon is needed, particularly to access the I-5 corridor, along with more generation. 

View the full study findings here. See a streamlined version of the report to Grant PUD commissioners on pages 64-89 of the presentation materials.

Commissioners also:

-- Approved Resolution 9123 for Grant PUD to acquire by condemnation a parcel of land measuring 0.27 acres in the vicinity of Quincy’s Lauzier Park. An easement across the parcel is needed to complete the 230-kilovolt Wanapum to Mt. View transmission line. The property has lacked identified ownership and/or tax assessments in Grant County Assessor’s tax rolls for several decades. For more information, see pages 14-19 in the commission packet. Hear the vote at 8:59:00 on the commission audio.

-- Approved Motion 3561 authorizing the general manager/CEO on behalf of Grant PUD to participate in the Mid-C Geothermal Interlocal Cooperative Agreement with Chelan and Douglas County PUDs to explore the potential of geothermal energy as an additional source to supplement the utilities’ Columbia River dams. The agreement commits Grant PUD to covering one-third the cost of Phases 1-3 of the study, up to $7.3 million. Staff will apply to use part of Grant PUD’s state-awarded proceeds at auction from the Climate Commitment Act to cover the utility’s portion of the cost. Learn more about the cooperative agreement and the potential of geothermal energy here and on pages 20-53 of the commission packet. Listen to the vote at 10:28:00 on the commission audio.

-- Heard that financial forecast for May was revised upwards compared to the prior forecast driven by Net Wholesale power sales. Grant PUD remains financially strong, with long-term sustainability driven through continued fiscal discipline, rate strategy, and careful management of power market and regulatory dynamics. See the report on pages 1-26 of the presentation materials.