EPHRATA - Grant County PUD settled a contract lawsuit with the Portland-based utility PacifiCorp this week.

PacifiCorp, an investor-owned utility, is a major power purchaser from the PUD's Priest Rapids Project.

PacifiCorp sued the district in 2009, seeking to be released immediately from a power sales contract dated Sept. 2, 1982.

After negotiations, both sides agreed the contract terminates Aug. 15, 2012, according to Rita Bjork, a district spokesperson.

During a recent commission meeting, district attorney Mitch Delabarre said the PUD has been involved with the case for a period of time, looking for alternatives and options.

Mediation between both sides was not successful, but additional discussions did take place, he said.

As a result, they reached a potential settlement, which Grant PUD commissioners approved unanimously.

Delabarre said the settlement is in the best interest for the district.

Grant PUD Commission President Randy Allred said the case started out as a multi-million dollar lawsuit.

"I think this is a very good result for the district, all things considered," Allred said.