No News is Good News for Tribes’ Power Line Project

The U.S. Department of Energy announced earlier this month that it would cancel $7.5 billion in energy project grants, but it did not specify which projects would see funding terminated. An unofficial agency list that has circulated online and several media stories stated that a $250 million grant for the Confederated Tribes-PGE power line upgrade project would be cancelled. As of earlier this week at least, Warm Springs Power and Water Enterprises had not yet received official notice of cancellation and project status remains unchanged, said Cathy Ehli, Warm Springs Power and Water general manager.

The funding cancellation, if finalized, would be a serious setback to the Bethel-Round Butte project; however, because the project would serve an important need in our region and would support load service to critical technological load such as AI and Data Centers in addition to meeting the Intel expansion.  This project would also support the tribal economic development, the Confederated Tribes and PGE are evaluating if the project could possibly still go forward through some alternatives. For example, one option could be to secure replacement funding from some other sources.  It is too early to identify what potential options could be, and the Tribes will also evaluate the option of appealing any final cancellation.

The tribes and PGE last year received the grant as part of the previous administration’s Grid Resilience and Innovation Partnerships program, funded through the 2021 Bipartisan Infrastructure Law.

The tribes, PGE and other partners have been planning to replace the transmission lines between the reservation and the Salem area; and to install high-capacity fiber optic cables. This would greatly increase the efficiency of transmitting power from the Pelton-Round Butte hydro project to the Willamette Valley and allow for more revenue to benefit the Tribes.