Co-op looking at rate hike, geothermal power

With the Bonneville Power Adminstration raising rates by 7 percent on Oct. 1, Flathead Electric Cooperative could be looking at raising its rates by 3.5 to 4 percent.

"Our Bonneville bill is about half our expenses," Co-op general manager Ken Sugden said. "The rate increase from Bonneville adds about $3 million a year."

The Co-op also recently learned it could receive $491,000 in federal money for a geothermal development project in Hot Springs. Exploratory drilling could begin as early as 2010 if funds arrive as expected.

Rep. Denny Rehberg said the money was included in the Energy and Water Appropriations Subcommittee bill for fiscal year 2010. Rehberg, a member of the subcommittee, said the funding represents the balanced approach he supports to meet America's energy needs.

Cheryl Talley, the Co-op's director of energy services, said nearly every strategic energy plan in the U.S. calls for more renewable energy, and "geothermal fits the bill."

Experts project that adequate water and heat is available in the area for electric generation, especially when coupled with advancing technology. The geothermal project makes sense for the Co-op on a number of fronts, general manager Ken Sugden said.

"It produces a steady supply of energy (as opposed to variable sources like solar and wind), so there is not a problem integrating the output into the electric system, and the Hot Springs area in Lake County appears to be a good source of geothermal energy," he said.

Eventually, the Co-op hopes to use the resource to partially supply its load growth and hopes to collaborate with the Confederated Salish and Kootenai Tribal Council and Mission Valley Power, since the site is on the Flathead Reservation and in Mission Valley Power's service area.