The Columbia River generates 40 % of U . S . hydropower , irrigates $ 8 billion in agricultural crops , and moves 42 million tons of commercial cargo valued at $ 20 billion annually . fall 2024 37
business backgrounder | federal focus
Under the modernized treaty , the U . S . will retain more clean hydropower . There will be an immediate 37 % cut in the hydropower the U . S . sends to Canada , and a 50 % reduction by 2033 – according to the U . S . Department of State .
“ By 2033 , we ’ ll be retaining almost 600 more megawatts of capacity in the Pacific Northwest and about 230 more average megawatts of energy than in recent years ,” said Hub Adams with the Bonneville Power Administration , during an information session hosted by the State Department in August . “ This will go a long way towards helping meet regional power demand growth .”
The modernized treaty will help Washington maintain low-cost , reliable electricity , said AWB Government Affairs Director Amy Anderson , lead on federal issues . The state had the cheapest power in the nation for both residential and industrial customers in 2022 , largely thanks to hydropower .
Scott Kinney , vice president of energy resources for Avista Corp ., which provides electricity to roughly 400,000 customers in Eastern Washington and Northern Idaho , said the updated and modernized Columbia River Treaty is expected to have a positive impact on the region by enhancing the power network ’ s resiliency .
“ This will be a crucial component in utilities ’ efforts to accommodate the increasing energy requirements and progress towards set targets for renewable energy milestones ,” Kinney said .
Demand for electricity in the Pacific Northwest is expected to jump 30 % in the next 10 years , higher than previous forecasts , according to an annual report from the Pacific Northwest Utilities Conference Committee . The increase is due to the expansion of large data centers , growth of high-tech manufacturing and electrification trends .
“ Having additional clean hydropower will continue to draw investment to the region ,” AWB President Kris Johnson wrote in a newspaper column in August . “ It ’ s served as the foundation of our manufacturing economy for decades and is one of the key reasons innovative new manufacturers – from EV battery makers to sustainable aviation fuel companies – continue to choose to locate in our state , bringing hundreds of jobs .”
The updated treaty will also boost grid transmission connectivity between the U . S . and Canada , helping keep the lights on and avoid blackouts during extreme weather events .
“ The fact that we were able to get to an agreement in a timely manner is a positive . It is a testament to the beneficial trade relationship that the U . S , Canada and their indigenous populations share .”
— AWB Government Affairs Director Amy Anderson
Map showing the system of hydroelectric dams on the Columbia River .
The Columbia River generates 40 % of U . S . hydropower , irrigates $ 8 billion in agricultural crops , and moves 42 million tons of commercial cargo valued at $ 20 billion annually . fall 2024 37