ENERGY PRODUCTION
The power market in the Northwest has changed. Pumping at the times of the day when power costs are relatively inexpensive and releasing water when prices skyrocket will make the operation more cost effective. This plan has the potential to significantly reduce or eliminate the projected cost of pumping.
The demand for wind power is planned to dramatically increase and with it the need for “wind integration”. Wind integration would place a premium on the “storage battery” value of controllable generation from Black Rock to offset the fact that the wind only blows around 30% of the time.
The Black Rock Reservoir project includes a power plant at Roza and Sunnyside Canal. Also, water can be returned to the Columbia River through a plant at Priest Rapids Dam to generate electricity and add to the flow of the Columbia River when needed. Power plants at the western facility at Roza Canal and Sunnyside Canal and the eastern facility at the Columbia River can produce a cash flow to help defray the operating cost of pumping from the Columbia River.
Energy sales based on cash flow analysis and reduce to NPV, the 40 year revenues can bring a total value of $412 million1 at the western power plants and the P/G power benefits from the eastern power plant is estimated to be $25.7 million/year.2
1The Recreation and Economic Development Analysis of Land around the Proposed Black Rock Reservoir study by Mitchell Nelson Group, LLC.
2As reported in the Power Generation Study by Larry Felton of Energy Northwest.
*See the Energy Study for more in-depth information.
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