June 1, 2000, one year after our power plant at the Roosevelt Regional Landfill began commercial operation, we are pleased to report that the H.W. Hill Landfill Gas Power Plant is a success by any measure. The fuel supply is reliable, the power is being generated and sold, and we’re operating in the black.

During its first year the plant generated 66 million kilowatt hours of electricity, or enough power to supply 4,500 homes. Power sales to three Washington PUDs and Goldendale Aluminum have brought in nearly $1.2 million in revenue, easily covering costs to operate the plant and pay debt service.

We’re using part of the net revenues from the plant to create a fund for routine maintenance and major overhauls of the plant engines. Net revenue has also helped us make improvements to the transmission and distribution system to improve service reliability for our electric customers.

The past year -— and the potential for generating 25 percent more power during the plant’s second year -— has made our PUD one of the region’s leading producers of clean, renewable energy. We have discovered a robust and growing market for the plant’s output. Priced at up to 3.4 cents per kilowatt hour, it costs half the price of other sources of new renewable energy. That’s a good market position when electric customers are asking for greater access to green power and many utility deregulation proposals require or reward investment in renewable energy.

Another plus for local customers is that reports suggest that the region’s demand for electricity is beginning to outstrip supply. As the region runs out of power, our investment in locally owned, low cost generation will help ensure our future viability and rate stability.