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Lake Tapps gets a new owner and lease on life

Published 12:24 pm Thursday, December 11, 2008

By Dennis Box

The Courier-Herald

Cascade Water Alliance sealed the deal with Puget Sound Energy April 27 for the purchase of Lake Tapps.

The eastside water purveyor bought the reservoir, the White River divergence dam in Buckley, the flume and the White River Hydroelectric plant that was closed in January 2003.

According to Mike Gagliardo, general manager for Cascade, the water provider will pay $10 million for the initial purchase and if the water rights are successfully issued and cleared, Cascade will pay an additional $27 million for a total of $37 million.

The Cascade board of directors approved the terms April 27 and Gagliardo said the transfer documents should be completed by August.

PSE completed the reservoir in 1911 and operated the hydroelectric plant for nearly 100 years.

The utility closed the plant because the Federal Energy Regulatory Commission license became too expensive to obtain because of Endangered Species Act issues.

"This is the end of the era," Roger Thompson said, spokesman for PSE. "Our goal throughout this has been to work with the task force to come to some resolution that preserves the lake. We are thrilled."

Pierce County Councilman Shawn Bunney, who is chairman of the Lake Tapps Task Force, said the purchase is a welcome step in the process of saving the lake.

"Cascade is committed to the lake as a new water supply," Bunney said. "We look forward to working with all parties to preserve this gem of a resource."

Curt Hart, spokesman for the Department of Ecology, said the drinking water rights should be re-issued this month.

Ecology granted the drinking water rights to PSE in June 2003. After an appeal by the Puyallup and Muckleshoot tribes and the cities of Auburn, Pacific, Algona and Buckley, along with a private citizen, Robert Cook, the Pollution Control Hearings Board sent the decision back to Ecology to be reconsidered in light of the closing of the hydroelectric plant.

PSE and Cascade have been negotiating with the tribes and other appellants with the hope another appeal can be avoided if the water rights are granted again by Ecology.

"PSE is still involved in the negotiations with the parties," Thompson said. "Our plan is to resolve this short of litigation."

If the consumptive water rights are granted and pass any court challenge, Gagliardo said Cascade would construct a water treatment plant and delivery lines.

"We are investing in this project because we are absolutely convinced Lake Tapps will provide high quality drinking water," Gagliardo said. "Water will continue to be a major issue in this region for years to come."

The Lake Tapps drinking water right is for 65 million gallons per day. Cascade members currently use 30 million gallons per day. Lake Tapps water is expected to go online around 2025 and become the central source of water for Cascade in about 50 years.

Eastside cities and water districts using Seattle water formed Cascade, a non-profit corporation, in April 1999. Members include the cities of Bellevue, Issaquah, Kirkland, Redmond and Tukwila, the Skyway Water and Sewer District, the Covington Water District and Sammamish Plateau Water and Sewer District.

Gagliardo said the corporation could provide water to Bonney Lake and other Pierce County communities.

"In the future it could very well be that it makes sense for Bonney Lake to use water from Lake Tapps," Gagliardo said. "Cascade's idea is to interconnect the region as much as possible."

Dennis Box can be reached at dbox@cmg-northwest2.go-vip.net/courierherald.