Guest Post: Electric Cooperative Partners with Lumber Company for Biomass Plant

Electric Cooperative Partners with Lumber Company for Biomass Plant

This blog post was provided by Flathead Electric Co-op.

Implementation of a Power Purchase Agreement (PPA) between Flathead Electric Co-op and F.H. Stoltze Land & Lumber Company will begin October 1st. The official term of the agreement, signed in February of 2012, is for twenty years.

Entering into the long-term agreement assisted Stoltze in securing the necessary finances to replace an antiquated boiler and construct a biomass-fueled electric generation facility at their plant near Columbia Falls. Flathead Electric will purchase an annual average of up to 2.5 megawatts of power at a wholesale rate, and will also receive Renewable Energy Credits in the transaction.

Chuck Roady, Vice President of Stoltze, says the company is very pleased to partner with Flathead Electric: “Not only is this agreement great for the community, but it will provide a renewable energy source and also help manage the forests.”

FEC General Manager, Ken Sugden, says he too, believes the arrangement will be mutually beneficial, adding that both parties had been negotiating in good faith for years. “Stoltze will be able to maintain and strengthen local job opportunities and Flathead Electric will be able to efficiently distribute electricity in our service territory. Although a small component, this purchase agreement also adds to the Co-op’s renewable energy portfolio, without financially overburdening our members.”

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