A key breakthrough occurred when Skagit PUD formed a partnership with the adjacent Mount Vernon School District. Because the utility cannot sell power and the reservoir site itself had little electrical demand, the district became an ideal partner with substantial on-campus energy needs. Through a net metering arrangement approved by Puget Sound Energy (PSE), electricity generated by the system is fed back onto the grid, offsetting the school’s energy bills. The project also funded installation of two electric vehicle charging stations at the high school, providing visible proof of local clean energy production.
The collaboration supports the district’s sustainability goals while offering students hands-on learning opportunities tied to renewable energy and water system operations.
Funding, design and construction challenges
Implementing the new system required navigating complex funding and technical hurdles.In 2023, the Washington State Department of Commerce awarded the project $598,000 through its Clean Energy Fund 5 Rural Clean Energy Program. The district and its partners assembled the remaining funding through TransAlta’s Coal Transition Fund, IRS incentives, and Inflation Reduction Act provisions for U.S.-made technologies—allowing the project to move forward without impacting ratepayers.
The technical integration was equally complex. Replacing the mechanical PRV required the turbine system to maintain precise pressure control for the reservoir while capturing energy from consistent, high flows. Skagit PUD, InPipe Energy, and Grundfos developed customized pressure management strategies, while PSE conducted rigorous electrical safety and grid interconnection testing.
Construction required careful operational planning to maintain continuous water service, including bypass procedures and on-site engineering to navigate aging infrastructure installed decades earlier. Commissioning revealed initial challenges with noise and lower-than-expected output, which were resolved through equipment adjustments and several days of system calibration.
