Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - August 10, 2000
Contact:  Governor's Communications Office, 360-902-4136

Locke declares energy alert to protect fishing and agriculture industries

BELLINGHAM - Citing continuing energy supply shortages on the West coast, Gov. Gary Locke today declared a statewide energy alert and took steps to ensure power for cold storage facilities critical to Washington's fishing and agricultural industries.

The alert gives the governor 90-day authority to suspend or modify state regulations relating to energy supplies.

In his first action under the alert, Locke directed the Spokane County Air Pollution Control Authority (SCAPCA) to allow continuous operation of Avista Corporation's Northeast Combustion Turbine in Spokane County for 30 days. The plant has been limited to operating about 100 days a year.

Avista, in turn, will provide affordable power to Bellingham Cold Storage (BCS), allowing the Whatcom County company to maintain operations and receive millions of pounds of raspberries, cranberries, ocean fish, and other products during the summer and fall harvests.

"My order today keeps hundreds of people on the job, and ensures that our berry farmers and ocean fishermen will have adequate cold storage facilities for their summer and autumn harvests," Locke said. "This gives us some time for the energy markets to settle down."

BCS, which purchases power at costs tied to a wholesale price index, has been hard hit by the recent price spikes in the wholesale electric market. It recently curtailed operations, turning away new products from farmers and fishermen, and laying off 270 workers. BCS employs 1,200 people.

Other companies that share BCS's facilities, including Trans-Ocean Products, Trident Seafoods and Icicle Seafoods, earlier curtailed operations and temporarily laid off hundreds of workers.

The state Department of Agriculture had warned that even a temporary closure of BCS facilities "would severely and adversely affect many companies and a large segment of the state's seafood and agriculture industries." It noted that farmers are "already suffering from severely depressed prices and cannot absorb increased costs for storing or freezing."

BCS provides about 40 percent of the cold storage capacity in western Washington, handling more than a billion pounds of fruits, vegetables and seafood annually.

In a letter to the Governor's Office, SCAPCA said that it does not believe a short term lifting of operating restrictions on the Avista facility "will cause any air pollution standards to be exceeded or cause any significant impact on public health."

Still, Locke directed SCAPCA to monitor air quality during the plant's operation and notify the departments of Health and Ecology if unexpected or unsafe conditions occur.

Electricity prices have soared up to 20 times normal levels this summer due to an unusual and unexpected convergence of factors, including record hot weather in California, high natural gas prices, and low river flows, leading to lower-than-usual production at hydroelectric dams. In addition, federal deregulation of wholesale energy and California's deregulation of retail markets have contributed to the price increases as energy traders seek to maximize revenues.

In July, Locke called on the Northwest Power Planning Council to analyze factors behind the price increases, and identify ways that state and federal policy makers can prevent such volatility in the future. The council began hearings in late July.

Under the governor's direction, the state also is developing policies to promote conservation, energy efficiency and investments in renewable energy sources.

"The energy problem faced by Bellingham Cold Storage should serve as a wake-up call to all of us," Locke said. "We need to plan now to ensure we continue to have dependable, reasonably priced electric power for our businesses, factories, schools and homes."

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