Energy Northwest

May 31 , 2007
News Release 07-08
Brad Peck, Corporate Communications
(509) 377-8247
Gary Miller
(509) 377-8728

State, local governments receive $3.01 million in Energy Northwest privilege taxes

RICHLAND, Wash. – Energy Northwest paid approximately $3.01 million to the state of Washington today in payment of annual “privilege” taxes levied on electricity generating facilities in the state.
The public power agency generated 9.44 billion kilowatt-hours of electricity in 2006, generally considered enough to power Seattle. Generation was up 11 percent, mostly due to the record generation run for Columbia Generating Station of 486 days that ended October 31, 2006.
Columbia produced more than 97 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 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 54.28.020 and RCW 54.28.025 for thermal generating facilities. Columbia’s portion of the total tax payment is $2.95 million. The money will be distributed by the state to 40 separate jurisdictions and the state’s general fund, with 50 percent of the payment – $1.475 million – going to the state general fund for schools. The remaining 50 percent of the total taxes – another $1.475 million – 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 remaining 50 percent of the tax is distributed twenty-two percent to counties ($649,000), twenty-three percent to cities ($678,500), three percent to fire districts ($88,500) and two percent to library districts ($59,000).

Since Columbia Generating Station began operating in 1984, Energy Northwest has paid $53.2 million in privilege taxes on its electricity – while producing virtually no air pollution and without harming fish habitat.
In addition to the $2.95 million in taxes on Columbia, Energy Northwest is also paying $56,289 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. The taxes associated with non-thermal generation went to the State General Fund with 37.6 percent ($21,164) being earmarked for public schools.

“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.


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