RICHLAND, Wash. – Energy Northwest paid approximately $2.89 million to the state of Washington today in payment of annual “privilege” taxes for its electricity generating facilities, the largest being Columbia Generating Station near Richland.
The company’s generating facilities produced 8.98 billion kilowatt-hours of electricity in 2004 – up from 7.75 billion in 2003 – and enough to power a metropolitan area the size of Seattle.
The company’s Columbia Generating Station nuclear plant produced more than 98 percent of that total, and provided it - at the cost of production - to the Bonneville Power Administration, who resold the power to customers in the Western states.
The nuclear plant’s portion of the total tax payment is 2.84 million. The money will be distributed by the state to 37 separate jurisdictions and the state’s general fund, with the biggest payment – $1,272,654 – going to the state general fund for schools. The tax is levied on organizations that enjoy the privilege of generating, distributing or selling electricity in Washington, and is authorized by state law under RCW 54.28.025.
The state’s general fund will receive four percent of the taxes paid on Columbia’s electricity, plus a surcharge on that tax – for a total of $291,649 - off the top. The state’s school fund will then receive half of the remaining taxes, equal to $1,272,654 or 48 percent of the total paid by Energy Northwest on Columbia Generating Station. The remaining 48 percent of the total taxes – another $1,272,654 – will go to jurisdictions within a 35-mile radius of the Benton County intersection of Stevens Drive and Horn Rapids Road, with distribution based upon the population in each area.
Jurisdictions receiving payments within the 35-mile radius include Benton, Franklin, Grant, Walla Walla, and Yakima counties; and the cities of Richland, Kennewick, Pasco, Benton City, Prosser, West Richland, Connell, Mesa, Grandview and Sunnyside.
The counties will share $559,968 (22 percent); cities will share $585,421 (23 percent); fire districts will share $76,359 (3 percent); and library districts will share the final $50,906 (2 percent).
Since Columbia Generating Station began operating in 1984, Energy Northwest has paid nearly $48 million in privilege taxes on its electricity – while producing virtually no air pollution and without harming fish habitat.
In addition to the $2.84 million in taxes on Columbia, Energy Northwest is also paying $53,640 in privilege tax for electricity produced at the agency’s non-thermal electric power producing sites under RCW 54.28.020. Those other sites include Packwood Lake Hydroelectric Project near Packwood, WA; Nine Canyon Wind Project, south of Kennewick, WA; and the White Bluffs Solar Station near Columbia Generating Station.
“Our priorities have not changed. Safe, reliable production of low-cost power for our region remains our focus and environmental stewardship is an essential element of that effort. All our production facilities - nuclear, hydro, wind and solar - help keep our air clean and waters pure. Those environmental contributions, together with the taxes we pay, allow Energy Northwest the privilege of contributing to the quality of life in our region,” said Energy Northwest CEO Vic Parrish.