Press Release From NoBioMassBurn.Org

PUD-3 OFFERS TO PAY SIMPSON $289M FOR ALL ITS INCINERATOR POWER 

RATES UNDER SECRET 20 YEAR DEAL WOULD SOAR

August 23, 2010— Mason County PUD-3 has offered to pay almost $300M over 20 years for all the electricity generated by the controversial biomass incinerator proposed by Simpson Logging Co. A confidential document from March, 2010 obtained under Washington Public Records Request law shows PUD-3 offered to pay Simpson $289,347,567.70 during 2013-2032. 
 

Under the secret deal, PUD-3, which supplies power to more Mason County users than any other utility, would pay Simpson $83 per megawatt hour for the electricity—almost three times more than the $30 per megawatt hour PUD-3 currently pays to Bonneville Power Administration.
 

It is uncertain if a contract between PUD-3 and Simpson reflecting this offer has been signed.  PUD-3 has refused to provide more than 150 documents requested under Washington Public Records Request law, citing “attorney/client” privilege among other reasons.
 

Simpson is proposing to build a 31MW biomass incinerator on its Shelton waterfront property to generate electricity for sale to the grid. Along with the 65MW biomass incinerator proposed 1.5 miles outside Shelton by Adage, the Simpson incinerator has drawn fierce criticism from citizen activists who claim it would emit toxic air pollution threatening lives and health in Mason County and drive down property values. 
 

Including the Simpson and Adage burners, five biomass incinerators are planned for the Olympic Peninsula. Activists and scientists claim the collective demand of these incinerators for forest wood will lead to clear-cutting regional forests. 
 

In addition to the $289M Simpson would receive from PUD-3 under the secret offer made in March, Simpson would also qualify for $35-40M from the federal government as a cash grant for 30% of the incinerator construction costs—if construction begins by December 31, 2010. Under the Biomass Crop Assistance Program, Simpson would be paid more millions by the federal government for burning its own mill residue to fuel the incinerator.
 

While this secret deal would guarantee a market for 100% of Simpson’s incinerator-generated power, Adage has yet to announce any buyers for the electricity its incinerator would generate.

LINK to PUD3 3/10/2010 DOCUMENT 

Contacts: 

1.      Duff Badgley, No Biomass Burn, 206-283-0621, duff@nobiomassburn.org,      www.nobiomassburn.org.  

2.      Linda Gott, PUD-3, LindaG@MasonPUD3.org , 360- 426-8255.        Gott is current president of PUD-3 Board of Commissioners.   

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