Sea-Tac Airport Cleared to Buy Power from BPA

Airport cuts costs dramatically, reduces electricity usage

(Seattle)--Seattle-Tacoma International Airport expects to save millions of dollars annually on its electric bill under a just completed arrangement with the Bonneville Power Administration (BPA). Sea-Tac has qualified as an electric utility under long-standing BPA rules, and is now buying power as a preference customer of BPA.

With the change in its status, the airport is paying less than $.05 per kilowatt hour for electricity. At the height of the energy crisis, the airport was paying more than $3.00 per KWH during peak periods. The change equates to a savings of approximately $20,000 per day.

"This savings ultimately passes through to travelers," said Gina Marie Lindsey, Managing Director of Aviation for the Port of Seattle. "The airport is funded by people who use the facility, so the savings will benefit travelers, airlines and tenants."

The Port has always purchased electricity and sold it to airport tenants and airlines much as a utility would. To make the airport officially a utility, the Port of Seattle had to expand an existing Industrial Development District to cover the entire footprint of the airport.

"We found a way to do this within existing BPA rules," said Lindsey. "It's the first time a Port district has completed the steps necessary to become a preference customer."

Even with this contract, the airport will pay about $17 million for electricity in 2001. That's more than double what was budgeted. But in 2002, the first full year under the new rates, the Port expects its energy costs to actually drop below pre-crisis levels.

"The Bonneville Power Administration is pleased to provide Seattle-Tacoma International Airport with cost-based power," said Paul Norman, Senior Vice President for BPA's Power Business Line (PBL).

"PBL reviewed documentation submitted by the Port of Seattle and determined that Sea-Tac Airport met all of PBL's Standards for Service requirements and BPA is therefore required to provide power under BPA statutes. BPA will serve Sea-Tac's electric power needs with wholesale power purchased specifically to serve Sea-Tac's loads. Sea-Tac will pay the priority firm power rate plus a Targeted Adjustment Charge (TAC) to cover all of BPA's costs to acquire the necessary wholesale power to serve Sea-Tac's loads," explained Norman.

Staff at Sea-Tac have also found ways to reduce electric consumption, not just their bill.

Load sensors have been installed on escalators to reduce electric use by more than 30%.
Incandescent lights are being replaced with compact fluorescents using just a seventh of the power.
Thermostats have been adjusted. Because the airport terminal has to be cooled year round, reducing power means that parts of the airport will actually be warmer than usual.

In February, the Port announced that energy use at Sea-Tac had been cut by more than 10%, exceeding Governor Gary Locke's challenge to public agencies. The Port first made those changes which were easy to accomplish and produced the biggest benefit. Now, the Port is working on other more technical challenges to further reduce consumption.