State lawmakers are expected to revisit early next year their efforts to create wildfire-mitigation legislation that would hold utilities liable for wildfire damage sparked by the equipment they own, Grant PUD commissioners heard Tuesday during their weekly workshop.
The effort follows stalled legislation from HB227, which never made it out of committee. The issue could be brought back in some form when the 2027 legislative session begins the second week of January.
The stalled bill included a provision already in place in California to require private utilities to pay into a fund to cover all or part of any damages caused by their electric systems. Public utilities have the option to pay into the fund.
Instead, Washington lawmakers are considering other measures, including the feasibility of adequate wildfire insurance coverage for all state utilities or proof that the utilities' existing insurance policies also cover wildfire damage sparked by their equipment.
Grant PUD already has a comprehensive wildfire-mitigation plan that takes into account risk reduction through vegetation management, staff training and close collaboration between the utility and Grant County's fire districts.
"We are very engaged in this conversation," Matt Harris, Grant PUD senior policy analyst, told commissioners.
See the full report on pages 42-56 of the workshop presentation materials.
Tax-exempt financing transaction could save $4M Annually
"Tax-exempt power financing" could save Grant PUD approximately $4 million annually on an existing power purchase agreement with the planned Royal Slope Solar project, the utility's financial staffers told commissioners Tuesday.
Grant PUD financial staff have been evaluating the financing details and economics for the past year and recommend moving forward, Bonnie Overfield, the utility's chief financial officer, said.
The Royal Slope Solar project is planned for private property upriver of Wanapum Dam. Construction has yet to begin, but the project is expected to begin generating in early 2028.
Under the proposed financing structure, Grant PUD would enter into an agreement with investment banker Goldman Sachs, and an intermediary, Energy Southeast, which would buy the power directly from the Royal Slope Solar project and resell it to Grant PUD.As part of the transaction, Energy Southeast would issue tax-exempt bonds in their own name. The economics connect to the overall power purchase agreements and result in savings to Grant PUD in the form of lower power costs on solar energy purchased from Royal Slope Solar – approximately $4 million in reduced payments annually.
Energy Southeast's bond issuance would not add to Grant PUD debt. The utility will withdraw from the agreement if commission-approved savings are not met and go back to purchasing the power directly from Royal Slope Solar, staff explained.
The transaction is expected to produce approximately $43 million in energy savings to Grant PUD over 10 years and could be extended, staffers said.
Commissioners will study the proposal for a possible vote at their Sept. 22, 2026, business meeting.
See the full report on pages 5-12 of the workshop presentation materials.
Commissioners also:
-- Met with Ephrata Mayor Steve Oliver and City of Ephrata Administrator Ray Towry to review the city-improvement projects underway with the help of $24 million grant funding secured by the city.
Projects this year include new covered sports courts and event center, street and sewer repairs and city water improvements.
Commissioners expressed support for the city's efforts and pledged future collaboration, where possible. See the full report on pages 12-41 of the workshop presentation materials.
-- Received quarterly business reports from both the Legal, Regulatory and Government Affairs Department and Power Production. View the full reports on pages 57-66 and pages 67-79 respectively in the workshop presentation materials.