Commissioners with Washington State’s Grant PUD recently passed a resolution authorizing an electricity prepayment transaction, including purchase of electricity, from Energy Southeast and approving the execution and delivery of one or more power supply contracts, limited assignment agreements and other documents related to the purchase of electricity.
The tax-exempt power financing arrangement is expected to save Grant PUD approximately $4 million annually on its purchases of electricity from the Royal Slope Solar project, expected to be generating in early 2028.
Under the financing structure, Grant PUD will enter into an agreement with investment banker Goldman Sachs, and an intermediary -- Energy Southeast -- which will buy the power directly from the Royal Slope Solar project and resell it to Grant PUD.
As part of the transaction, Energy Southeast plans to issue tax-exempt bonds in its own name, Grant PUD noted. Energy Southeast is an Alabama-based joint action agency.
“The economics connect to the overall power purchase agreements and result in savings to Grant PUD in the form of lower power costs on solar energy purchased from Royal Slope Solar – approximately $4 million in reduced payments annually,” the PUD said.
The transaction is expected to produce approximately $43 million in energy savings to Grant PUD over 10 years and could be extended, PUD staff said.
Energy Southeast's bond issuance will not add to Grant PUD debt and Grant PUD will withdraw from the agreement if commission-approved savings are not met and go back to purchasing the power directly from Royal Slope Solar, PUD staff told the Commissioners earlier this month.
