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Agreement reached in lawsuit by regional PUDs against federal government

CHERYL SCHWEIZER | Hagadone News Network | UPDATED 1 hour, 19 minutes AGO
by CHERYL SCHWEIZER
Senior Reporter Cheryl Schweizer is a journalist with more than 30 years of experience serving small communities in the Pacific Northwest. She began her post-high-school education at Treasure Valley Community College and enerned her journalism degree at Oregon State University. After working for multiple publications, she has settled down at the Columbia Basin Herald and has been a staple of the newsroom for more than a decade. Schweizer’s dedication to her communities and profession has earned her the nickname “The Baroness of Bylines.” She covers a variety of beats including health, business and various municipalities. | September 28, 2026 2:05 AM

EPHRATA — Three public utility districts who operate hydroelectric projects in the mid-Columbia River have settled a lawsuit they filed against the US government in late 2024.  

The lawsuit involved payments made by the Grant County PUD, Chelan County PUD and Douglas County PUD in connection with the Columbia River Treaty. The treaty governs water use between the United States and Canada in the Columbia River Basin. 

Chuck Allen, Grant County PUD senior manager of external affairs and communications, said the settlement has been approved by the commissioners of all three public utility districts. It will also need signatures from all PUD general managers, Allen said. 

Grant County PUD general manager John Mertlich, Douglas County PUD general manager Gary Ivory and Chelan County PUD general manager Kirk Hudson issued a joint statement Friday.  

"While the legal process was necessary to resolve important questions, we are pleased to see the parties reach an agreement that allows us to move forward. Chelan, Douglas and Grant PUDs have a long history of working collaboratively on issues that affect our customers, our communities and the Columbia River system," the managers wrote in the statement. "Just as importantly, a strong and constructive relationship between the Mid-Columbia PUDs and the Bonneville Power Administration is essential to the long-term interests of our region.” 

The settlement updates a treaty originally negotiated in the 1960s. Higher water flows that come from hydro storage projects in Canada benefited hydroelectric projects in the US, including the mid-Columbia PUDs. In return, the PUDs provided 27.5% of the electricity that was returned to Canada. 

Under the lawsuit settlement, the mid-Columbia PUDs will pay 25% of the required obligations under the new treaty, which is still in negotiation. The PUDs will make a one-time $29.9 million payment to make up for payments missed after the PUDs filed suit. 

The three PUDs will make additional payments once the agreement goes into effect, dating back to June 2026. 

"As part of the settlement agreement, the parties agreed to improve water and energy planning, information sharing and energy operations," the PUD statement said. 


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