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About Hermiston herald. (Hermiston, Or.) 1994-current | View Entire Issue (Dec. 4, 2019)
NEWS WEDNESDAY, DECEMBER 4, 2019 HERMISTONHERALD.COM • A3 Industrial development feeds UEC growth By JADE MCDOWELL NEWS EDITOR As industrial develop- ment drives growth around Hermiston and Boardman, Umatilla Electric Cooper- ative is experiencing rapid growth of its own. It took the Hermis- ton-based, consumer-owned cooperative 77 years to sell its fi rst billion kilo- watt hours. This year alone it expects to provide cus- tomers just shy of 3 billion KWH. “Our average growth has been close to 20% per year in the last eight years,” Umatilla Electric CEO Rob- ert Echenrode said, noting that the increased volume comes despite advances in energy effi ciency caus- ing individual customers to decrease their usage. UEC has a policy against discussing specifi c cus- tomers. But anyone pay- ing attention to Hermis- ton, Umatilla and the Port of Morrow can guess that much of UEC’s growth is likely driven by new Ama- zon data centers spring- ing up around Umatilla and Morrow counties, as well as a few other major indus- trial projects such as the new Lamb Weston expansion in Hermiston. In its 2008 annual report, UEC reported that industrial customers made up 24.7% of its revenue. In 2018, that number was up to 64.2%. Echenrode said resi- dential sales in the past eight years have increased 2.5%. Irrigation sales have increased 19%, small com- mercial sales are up 27%, HH fi le photo A substation technician installs a ground wire on a riser structure in December 2017 at a new Umatilla Electric Cooperative substation on East Elm Avenue in Hermiston. and large commercial/indus- trial sales are up 500%. Such a large increase in industrial use to UEC’s system naturally brings up questions about who is pay- ing for that growth. Echen- rode said while many coop- eratives build some money for growth into everyone’s fees, UEC’s philosophy is that if it needs to build new lines or other infrastruc- ture to accommodate a spe- cifi c customer, it is that cus- tomer that should foot the bill instead of all UEC’s customers. “Those who trigger the growth, pay for the growth,” he said. Power costs While equipment, infra- structure and personnel to serve customers are a part of UEC’s costs, purchasing electricity from suppliers takes up most of the coop- erative’s budget. In 2018, 76.6% of UEC’s expendi- tures were for wholesale power. Much of that power comes from the federally owned Bonneville Power Administration, which sells electricity from 31 dams, a nuclear power plant and sev- eral small nonfederal power plants. In 2011, UEC signed a 20-year purchasing con- tract with BPA, after BPA changed its rate structure. Demand for BPA’s power was outstripping supply, and so BPA calculated a “high water mark” for utilities. The complicated formula used the amount of power BPA is able to produce in its lowest-performing years (when dry weather means low stream fl ows through hydroelectric dams) and the utilities’ usage pre-2010. Each utility was then assigned an amount of power it could purchase from BPA at “Tier 1” rates, which BPA would set at cost. Any power the utility needed beyond that amount would be con- sidered “Tier 2” power, to be purchased at market rates. In high-water years, BPA would sell its excess power into the market and use the profi ts to keep Tier 1 prices low. “The assumption at the time was that power costs were going up,” Echenrode said. Power costs in the mar- ket didn’t go up, however. Instead they dropped, due to a confl uence of factors that included fracking causing natural gas to drop to a frac- tion of its previous price. Rapid growth in Herm- iston and surrounding areas has pushed UEC well into needing Tier 2 power for its newer customers each year, but Echenrode said it so far hasn’t hurt them — the mar- ket price is actually lower than BPA’s Tier 1 prices. “Nobody would have ever thought of that when the contracts were signed in (2011),” he said. UEC’s contract with BPA is up in 2028, but Echenrode said that he expected they would be purchasing power from BPA well beyond that. “They’ve been very good to us, and very good to our customers,” he said. Renewable energy Echenrode said it was hard to know what market rates for power would do in the future, particularly as more states enact laws around renewable energy and cap and trade. Oregon Democrats are trying to pass cap-and-trade legislation of their own, which Echenrode said will “likely have a cost.” In 2016 the legislature passed a law requiring inves- tor-owned utilities to get at least 50% of their power from renewable sources by 2040, and consumer-owned utilities such as UEC to must get to at least 25%. The law does not include existing hydropower from dams as a renewable source, because lawmakers stated the intent was to encourage creation of new renewable energy sources. Echenrode said the mar- ket “may demonstrate renewables are less expen- sive over time,” or the law may force UEC to purchase more expensive electricity. Compliance is shown through Renewable Energy Certifi cates, and Echenrode said UEC has been build- ing those up now to protect it from spikes in the market. Despite some uncertainty about the future of the mar- ket, Echenrode said UEC is bound to serve all cus- tomers in its service area, and he believes that over- all the area’s growth is good for residents. The growth, for example, has helped pay for new equip- ment to serve customers, and enabled improvements such as UEC burying miles of lines on Weston Mountain to decrease fi re hazards. After BPA recently announced an increase in its prices, UEC will be adjust- ing its rates by about 2% in 2020, Echenrode said — something the utility will send more information to customers about later this month. For customers wor- ried about their personal or business electric bill, he said, UEC works hard to help people increase their energy effi ciency through free home energy audits, low-cost loans, cash rebates, weatherization and more. Information about those programs can be found at www.umatillaelectric.com/ energy-effi ciency. “The cheapest kilowatt hour is the kilowatt hour you save,” Echenrode said. Police seek missing Hermiston woman Oregon ends use of HERMISTON HERALD The Hermiston Police Department is investigat- ing the disappearance of a woman who hasn’t been seen by friends or family since November 8. Graciela Garcia, 49, of Hermiston, owns and oper- ates Careyes Beauty Salon out of her residence on 298 E. Hurlburt Ave. According to her daugh- ter, Anabel Coria, she had recently moved her busi- ness to that address. “She’s had her business a long time, and has lived Contributed photo Graciela Garcia, 49, of Hermiston, was last seen on November 8. Boardman crash injures St. Paul superintendent for traffi c caused by a previ- ous accident near milepost The superintendent of 162 when a Ford pickup the St. Paul School District driven by Wehrli collided was injured in a two-vehicle into the back of the trailer crash on Interstate at highway speed, 84 outside Board- according to the man on Saturday Oregon State Police. afternoon. Wehrli was inca- According to a pacitated at the statement from the scene, and was St. Paul Middle and fl own by LifeFlight Wehrli High School princi- to Kadlec Regional pal, Patrick Schrader, Medical Center in Joseph Mark Wehrli was Kennewick, Wash., with on the way home from the serious injuries. He has bro- OSAA football state cham- ken bones in his left leg and pionships at Hermiston High hip, according to Schrader. School, where Heppner beat His dog was in the truck at St. Paul to win the 2A title. the time of the crash but was A commercial truck and not hurt. trailer driven by Liviu Aurel The crash blocked the Czegledi, 44, of Portland, freeway for 2-1/2 hours. No was slowed in the right lane citations were issued. HERMISTON HERALD here all her life,” Coria said. “We don’t really know much, where she went or who could have taken her.” Coria and her family are asking people to share any information regard- ing where Garcia may have been seen on November 8 with the Hermiston Police Department. According to Hermiston Police Chief Jason Edmis- ton, the ongoing investiga- tion was opened three days after Garcia went missing, on November 11. “We are actively investi- gating this case, and detec- tives are continuing to work on this,” he said. He said there are no confi rmed details avail- able about exactly where or when Garcia was last seen. A missing poster, which has been circulat- ing on local social media, describes Garcia as about 5-foot-4-inches tall and 140 pounds. Anyone who might have information regarding Gar- cia is encouraged to call the Hermiston Police Depart- ment at 541-567-5519. driver license and ID address stickers HERMISTON HERALD When Oregon residents update their addresses with the Department of Motor Vehicles, they will no lon- ger be required to apply a sticker on their driver’s license, permit or ID card as of Jan. 1. The DMV will no lon- ger mail labels with new addresses on changes of addresses received after Dec. 31. Ending the use of address stickers is esti- mated to save $550,000 a year in printing and post- age costs. That savings will go into the State Highway Fund to support local and state roads. Oregon law requires driver’s license, permit and ID card holders to fi le a change of address with DMV within 30 days of moving to a new address within Oregon. Until this law change, Oregon was one of only three states that required cardholders to place a new address sticker on a license, permit or ID card. Hermiston Warming Station opens for the season HERMISTON HERALD The Hermiston Warm- ing Station is now open. Director Teesie Hill had said in November the sta- tion’s opening could be delayed due to lack of vol- unteers, but the shelter was able to get enough volun- teers to open for the season last Wednesday. The warming sta- tion is in a house at 1075 S. Highway 395, across from Tower Apartments. It will be open each evening through the end of Febru- ary. Check-in for guests is from 7:30-9 p.m. Families are allowed. The Hermiston Warm- ing Station takes donations of items to benefi t guests. For a list of possible items and how to donate, see the holiday giving guide on page A1. Thurs. Dec 12 th To Sat. Dec 14 th 30 OFF 60 OFF % Storewide including jewelry, purses, housewares, clothing, hats and more! % Clearance with items being added daily Introducing Kan Yang DO, Family Medicine ou r s Y r e d r O Today Great for gifts, parties & gift baskets. Gift certificates available E.O.M.S. Eastern Oregon Mobile Slaughter 541-567-2011 253 W. Hermiston Avenue, Hermiston Kan Yang earned his degree of Doctor of Osteopathic Medicine from Michigan State University College of Osteopathic Medicine, DMC Campus, in Detroit, Michigan. He completed his residency with The Wright Center for GME, Family Medicine Regional Network, in Scranton, Pennsylvania. In his spare time, Kan enjoys reading science fiction, spending time with family, jogging, and playing squash, basketball, ping pong, and tennis. Pendleton Round-Up & Happy Canyon Gift Store M-F 8:30-5 and Sat 9-5 1114 SW Court Ave • Pendleton • 541-276-2553 Shop online www.leterbuck.com Now accepting new patients. 589 Northwest 11th St. Hermiston, OR 97838 (541) 567-1717 yvfwc.com yvfwc.com
