Plum Creek has taken the lead in a new energy conservation project that could be a model for companies across the U.S.

Last week Flathead Electric Co-op in cooperation with the Bonneville Power Administration presented the company with a rebate check for $337,000 for installing a system that regulates the amount of power that goes to its medium density fiberboard plant.

The system is known as a 'real time voltage optimization product," said Jeremy Wilson of PCS UtiliData. It works like this, Wilson explained: Say an electric device, a toaster, for example, operates at a range from 114 volts to 126 volts. The toaster doesn't need 126 volts, but the power company, in order to ensure that enough juice is getting to the end of its line, sends out 126 volts.

In the past, there was no way to control the power flow. The toaster got 126 volts even though it only needed 114.

PCS UtiliData's combination of hardware and software regulates the voltage at Plum Creek's MDF plant. The MDF plant isn't running toasters, of course. It's running huge electric motors that refine the wood into a very fine sawdust. Tweak their power usage by just a few kilowatts and over time, it adds up to significant energy savings.

Plum Creek was able to save 3.7 million kilowatt hours of electricity used at MDF line two and got a rebate of $337,000. The company also installed the conservation system on line one, which was separate from the BPA rebate program, for a total annual electricity reduction of 8.1 million kilowatt hours — enough power to run about 600 homes annually.

The MDF plant, at full capacity, uses about 40 megawatts of power.

The total project cost about $600,000 and will save the plant about 4 percent on its energy costs, assuming the line runs at full capacity, said Plum Creek electrical engineer Ken Benson.

Benson said the rebate made it possible for the company to go forward with the project, which started in 2006.

The system, on this scale, is considered the first of its kind in the world.

The hope is to apply this technology to other industries, FEC and BPA officials said at a press conference last week.

"Our goal is to encourage other customers to invest in technologies that will help them achieve energy efficiencies," said Ken Sugden, FEC General Manager. "We consider this project to be a great example of what can be accomplished."