WENATCHEE — Three Central Washington public utility districts are exploring whether geothermal energy could become the region’s next major power source, as electricity demand continues to climb faster than utilities can build new generations. 

Chelan, Douglas and Grant public utility districts are each considering whether to fund a $22 million package of geophysical surveys, drilling and subsurface research to determine whether underground heat in Central Washington could support commercial-scale geothermal power. Commissioners in all three districts are expected to begin reviewing the proposal in May. 

The effort comes as a new regional study from Energy and Environmental Economics warns Washington and Oregon could face a 5‑gigawatt energy shortfall by 2030, with the broader Northwest — including Idaho and Montana — projected to fall about 9 gigawatts short of projected demand. Utility officials say the gap highlights the need for new, reliable, carbon-free resources that can operate around the clock. 

“We’re all trying to find new ways of generating and storing energy to meet a regional challenge,” Chelan PUD General Manager Kirk Hudson said in a statement. “The benefit of collaboration is to share the risks, the costs, and use our collective knowledge and experience to explore this opportunity together. As public utilities, we’re in a unique position to work together and gain a shared understanding of the potential for geothermal energy.” 

Early-stage proposal 

Grant PUD spokesperson Chuck Allen said the concept is still in its earliest phase and will be presented to commissioners next month. 

“It’s an idea that we’ll be presenting to our commissioners in May for consideration,” Allen said. “We don’t have a lot of details to share right now, because that will be presented to the commission. It’s really preliminary.” 

Grant PUD commissioners typically take action during their May 26 business meeting, though Allen said discussions could begin earlier in the month. 

State’s role 

Washington lawmakers have recently taken steps to encourage geothermal development statewide. 

During the 2024 legislative session, the Legislature passed Senate Bill 6039, which was signed into law by Gov. Jay Inslee and took effect June 6, 2024. 

The law directs the Washington Geological Survey to compile and maintain a public database of subsurface geologic information, including temperature gradients, geothermal well data and geophysical surveys. The goal is to reduce upfront risk for utilities and developers by improving access to high-quality geological data. 

It also instructs the Department of Commerce to establish a competitive cost‑share grant program to help offset the high costs of deep exploratory drilling, often one of the biggest financial barriers to geothermal projects. In addition, the bill requires the Department of Natural Resources to update geothermal leasing rates to better compete with other Western states, while directing the Department of Ecology to study potential environmental risks, including induced seismicity, in consultation with tribes and other stakeholders. 

Why geothermal, and why now 

Geothermal energy uses naturally heated water deep underground to produce steam that spins a turbine. Unlike wind and solar, it is a baseload resource, meaning it can run continuously and is not dependent on weather. 

Douglas PUD spokesperson Meaghan Vibbert said her district’s interest grew after its recent work developing a hydrogen production facility, its first major venture beyond hydropower. 

“As we got comfortable with that technology, employees at both Chelan and Douglas started talking about other research resources,” Vibbert said. “In the past, we’ve looked at pumped storage, and geothermal seemed like a good fit for the region.” 

Vibbert said the first steps would be extensive. 

“There are a lot of different studies we need to do — drilling and exploration — to see if it’s feasible and whether we have that potential here,” she said. 

If geothermal proves viable, Vibbert said, it could help Douglas PUD manage growth and strengthen grid reliability. 

“Growth is an issue for all the utilities, and there’s always a need for more energy,” she said. “If we do produce a geothermal site, it would benefit our customer‑owners, diversify our portfolio and provide a carbon‑free resource for the region.” 

Chelan PUD: Building on hydropower 

Chelan PUD spokesperson Rachel Hansen said the district is evaluating several emerging technologies to complement its hydropower base. 

“We’re studying a variety of energy sources to build upon our hydropower foundation,” Hansen said. “We’re looking at affordability, land use, environmental impact and 24/7 availability.” 

Geothermal checks those boxes — if it exists in Central Washington at usable depths. 

“Geothermal has not yet been studied in this area,” Hansen said. “We’re eager to see if there’s potential.” 

She said it is too early to predict when, or whether, geothermal power could reach customers. 

“There are several steps in the process, and we have to decide as a utility and community whether to move forward,” Hansen said. “It’s too early to tell.” 

Hansen emphasized the significance of the partnership itself. 

“By working together, we’re gaining access to high‑quality research in a way that’s more cost‑effective and beneficial for all of us,” she said. “That’s really unique in the utility world.” 

What comes next 

If commissioners in all three districts approve the proposal, the PUDs would apply for permits from the state departments of Natural Resources and Ecology, with the goal of beginning fieldwork this summer. 

All three utilities stressed the project could still end after the research phase if geothermal potential is limited. Vibbert said the data would remain valuable. 

“Whenever you collect data, it’s good information,” she said. “It helps inform future projects.” 

Commission discussions are expected to begin in May, with more detailed public information to follow. 

“Grant PUD staff have prepared a proposal for our commissioners to consider regarding this potential partnership to explore geothermal resources in our region,” Grant PUD General Manager John Mertlich said in a statement. “We look forward to receiving guidance from our commission as we evaluate the opportunity together with Chelan and Douglas PUDs.” 

    If commissioners in all Grant, Chelan and Douglas public utility districts approve the geothermal proposal, the PUDs would apply for permits from the state departments of Natural Resources and Ecology, with the goal of beginning fieldwork this summer.
  

    Grant Public Utility District Commissioners are set to begin discussing the potential of geothermal energy in May.