Co-op takes control of its energy future

Reflecting on his 25 years with Flathead Electric Cooperative, General Manager Mark Johnson can point to numerous infrastructure investments made during his tenure, but few rise to the level of the co-op’s latest major endeavor.

The local utility last month secured rights to purchase up to 130 megawatts of energy from a combined-cycle natural gas facility under development in northern Idaho. On average, 1 megawatt can power about 800 homes.

Johnson, who will retire in June, describes the agreement as among the co-op’s most significant deals this century.

“Looking back … this is one of them,” Johnson said in a recent meeting with the Daily Inter Lake editorial board. He described the plant, expected to go online in 2032, as “long-term, reliable and affordable.”

Check, check, check.

The project is being developed by PNGC Power, which the co-op joined a few years ago. Having a stake in the new gas plant and a seat at the table with PNGC Power also supports the co-op’s goal of preserving local control in an increasingly unpredictable energy market. Instead of relying on Bonneville Power Administration hydropower from the Columbia River Basin — which accounts for about 80% of the co-op’s supply — the deal with PNGC gives the utility an alternative source to help meet the valley’s growing power demands, which increase by about 2% to 3% annually.

Incoming Flathead Electric President Jason Williams worries about weather events that push peak demand to the limit — such as a stretch of subzero days two winters ago — and how the co-op can meet those spikes. Not only does the utility face additional costs to import power to offset shortfalls, but if no power is available, customers may face blackouts.

“That’s a real possibility,” Williams said.

Having a consistent supply from the natural gas facility will help meet those demands as more homes and businesses connect to the grid.

“We can use our resource to serve customers, as opposed to waiting for Bonneville,” Johnson added.

Both Johnson and Williams remain concerned about the future of wholesale power from Bonneville amid a lawsuit challenging how Columbia and Snake river dam operations affect fish habitat.

While those decisions play out, it is wise for the co-op to seek new alternatives for its power portfolio.

The Idaho plant marks another way the co-op has diversified its power options, which also include wind, solar and nuclear energy, as well as the innovative Flathead County landfill gas-to-energy plant and the F.H. Stoltze biomass facility in Columbia Falls.

The natural gas facility isn’t intended to replace Bonneville’s hydropower production, but it is prudent to plan for a time when those dams are not enough to power this fast-growing corner of Northwest Montana while also helping keep rates reasonable.