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 Fort James. 

 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 project has a capacity of approximately 27 megawatts and 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 E-environmental Assessment for the project with a Finding of No Significant Impact (FONSI). 

 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. 

 Fort James, Clatskanie P.U.D. and EWEB have executed a variety of construction, operation and maintenance agreements for the project.  Under the terms of those agreements, Fort James served as the project construction manager for the two utilities, and now that the generator is in service, Fort James 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. 
 
 
 

THE PARTICIPANTS

Fort James Wauna Mill

 The mill operates and maintains four paper machines on an ongoing basis.  To provide process steam for these machines, the mill currently operates three steam boilers that produce steam at 600 psi and 750 degrees F. 

 Presently, Clatskanie purchases 80% of their power from the Bonneville Power Administration. This project represents, Clatskanie's first generation project.

 EWEB owns and operates three hydroelectric projects on the McKenzie River, a hydroelectric plant on the Clackamas River, a hydro electric project in northern Idaho, a cogeneration plant at the Weyerhaeuser paper mill in Springfield, and a cogeneration facility at EWEB steam plant in Eugene.

 The Agency financed the construction of the project with (I) $70 million in project revenue bonds, which will be paid solely from project revenues and (ii) approximately $15 million of equity contributed by EWEB in the form of electric system revenue bonds. The EWEB contribution paid for 50% of the cost to construct the steam turbine facilities.The project debt issued by the Agency is intended to cover the cost to construct the fluidized bed boiler and 50% of the steam turbine facilities.

 ln order to finance the project with project revenue bonds, EWEB agreed to furnish the project equity or "down payment" in the form of electric system revenue bonds.  EWEB also agreed to subordinate payment of the EWEB debt service to payment of the operation and maintenance costs to Fort James and payment of the debt service for the project revenue bonds.  This financing structure allowed the project to be financed at a lower interest rate.  In return for contributing the equity and agreeing to subordination, EWEB receives an additional payment from the project on an annual basis.

 The Intergovernmental Agreement executed by EWEB and Clatskanie defines the purpose and scope of responsibility for the Western Generation Agency.  Under the terms of the Agreement, the Agency owns the cogeneration project and all project revenue bonds issued by the Agency and all other obligations incurred by the Agency will be paid from the revenues derived from the sell of the project output to Bonneville.

 Under the provision of the applicable ORS statutes, the project debt was issued by the Agency under the Uniform Revenue Bond Act (URBA).  In addition, because this agency was the first of its type to be formed in the State of Oregon for purpose of owning and constructing an electrical generation facility, EWEB and Clatskanie took the necessary legal steps to have the Agency validated in the Columbia County Circuit Court.
 

PROJECT PERMITS

 Modification to Fort James' exiting Containment Discharge Permit through the Oregon Department of Environmental Quality was required with the addition of the fluidized bed boiler.  The Wauna Mill is in attainment with all state requirements for air pollutant levels and this project did not have any effect on the attainment status.

 Bonneville, as a federal agency, is required as part of the National Environmental Policy Act (NEPA) to ensure that any action they participate in meets the intent of the Act.  In complying with the provisions of the Act, Bonneville completed an Environmental Assessment for the project and that assessment resulted in a Finding of No Significant Impact (FONSI) and was approved by the BPA Administrator.

 Under the rules of the Oregon State Facility Sitting Council, the project was exempted from obtaining a permit from the State of Oregon because of its size and the fact that it is a cogeneration facility located at an existing processing plant.

 A variety of construction and building permits were obtained from the Oregon Building Codes Agency (including plumbing, pressure vessels, fire, electrical, structural, and mechanical) as construction progresses.
 

Questions regarding the Wauna Cogeneration Project may be addressed to:

Everett Jordon
Energy Resource Projects Manager
Eugene Water & Electric Board
503-341-3411

Debbie Throop
Western Generation President
Accounting and Finance Manager Clatskanie People's Utility District 503-728-2163

In additions, this project allowed the Fort James Mill to build a fluidized bed boiler to provide additional steam from burning of non-hazardous waste products from the paper making process that would have to land filled.  Steam produced from renewable or industrial waste sources is often referred to a "Green Power."

Total Rate is $0.02054 per kWh.

One of the LOWEST in the Nation!

Note: Rainier Customers must add $0.01 per kWh until acquisition cost is paid.  Also customer inside city limits must add 5% Franchise Fee.