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Power ManagementCo-Generation ProjectClatskanie People's Utility District (PUD) and the Eugene Water and Electric Board (EWEB) constructed a 27-megawatt (MW) cogeneration facility at the Georgia Pacific Wauna Paper Mill located along the Columbia River near Clatskanie, Oregon, approximately 75 miles northwest of Portland. The project was completed and began generating power for use in the region in mid-1996. The cogeneration facility generates electricity directly from process steam currently produced at the Wauna Mill before that steam is used in the papermaking process. The cogeneration facility, including a generator and turbine, is constructed on property leased from Georgia Pacific. To increase the available amount of steam, a fluidized bed boiler has also been constructed. This boiler burns "sludge" - a moist sawdust-like, non-hazardous waste product of the papermaking process - from the mill, which is, currently land filled on site. Natural gas may also be used to occasionally co-fire the boilers. The output is to be sold to the Bonneville Power Administration. Under the terms of the Power Purchase Agreement for the project, Bonneville will purchase the project output over a 20 year period at a fixed rate on a "take and pay" or output basis. Prior to agreeing to purchase the output, Bonneville completed an Environmental Assessment for the project with a Finding of No Significant Impact. The project is directly connected to the Bonneville electric transmission system at the Wauna Mill. As a result, there was no need to build transmission facilities for the project nor is there any cost of transmission. Georgia Pacific, the PUD and EWEB have executed a variety of construction, operation and maintenance agreements for the project. Under the terms of those agreements, Georgia Pacific served as the project construction manager for the two utilities, and now that the generator is in service, Georgia Pacific will also operate and maintain the facility. The various agreements also include definition of roles and responsibilities for such things as; sale of steam from the existing boilers, delivery of sludge to the fluidized bed boiler, and the site lease.
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