Plum Creek Timber Co. received a check for $386,635 from Flathead Electric Cooperative on Wednesday for recent energy efficiency investments at the Columbia Falls sawmill.

The transaction was made possible through an energy efficiency incentive program sponsored by the Bonneville Power Administration that provides rebates to encourage industrial customers to install energy-saving technology.

Over the last year, Plum Creek completed a compressed air upgrade at the sawmill that will save an estimated 1.7 million kilowatt-hours per year.

The cost of the project was $522,337 and included the installation of a new 300-horsepower variable frequency drive air compressor, advanced digital controls, a 1,500-gallon receiver and peripheral equipment. It’s estimated that the upgrades will reduce Plum Creek’s annual energy costs by more than $54,000.

Plum Creek was one of the first companies in the Northwest to participate in the Energy Smart Industrial Program and has completed 11 custom projects so far to provide annual energy savings of 13.9 million kilowatt-hours.

The company has received rebates totaling $2.1 million.

The improvements have been at all of the company’s Montana business sites, including the Evergreen Complex, Columbia Falls Medium Density Fiberboard, sawmill and plywood plant. Future projects are planned as well.

“Plum Creek is committed to reducing the impact of our operations,” said Tom Ray, vice president of Montana Operations. “By working with the BPA and FEC rebate program, we were able to reduce our energy consumption and cover a greater part of the costs of the new system.”

Don Newton, the co-op’s key account representative, said Plum Creek has the largest stand-alone projects the utility has undertaken with an industrial customer.

“Our goal is to encourage other members to invest in technologies  that will help them achieve energy efficiencies and reduce costs,” Newton said. “We consider this project to be a great example of what can be accomplished.”