Richard Schaff, Business Support Manager of Richland’s Energy Northwest, testified in Olympia Monday, July 27, in support of a proposed bill that seeks to modify existing Washington state law regarding how joint operating agencies (JAOs) can purchase materials, equipment, supplies, or contract for construction of generating projects
According to Senate Bill 1461, co-sponsored by Representative Stephanie Barnhard of the 8th Legislative District serving the Tri-Cities, the law had previously specific dollar thresholds ($15,000 for materials and $25,000 for construction) that triggered requirements for sealed bids. The bill would remove these specific dollar amount restrictions and instead stipulate that JAOs will now have the same purchasing and contracting authority as public utility districts (PUD).
Energy Northwest is a JAO with a clean energy generation portfolio, which includes wind, solar, hydro, and nuclear energy from the Columbia Generating Station in Richland.
Schaff testified that Energy Northwest operates under an outdated bid threshold.
“We follow all the other rules and regulations that are under the PUD statute. So the only thing we get from this is the bid thresholds, and ours are significantly lower, and then our member utilities, which are made up of 29 member utilities, 26 are probably PUDs, “Schaff said. “These statutory changes are critical to ensuring that JOAs can operate effectively, efficiently, and with flexibility and in alignment with Washington State energy goals.”
The bill is now scheduled for executive session in the House Committee on Environment and Energy January 30. If passed, it moves on to the House for full consideration.
