PORT HADLOCK — The Jefferson County Public Utility District will provide electricity for the Port Townsend Paper Corp. mill when the utility begins providing electrical service in about two years.
The utility and the paper mill agreed to the change Friday.
The Clallam County Public Utility District now provides electrical power to the Port Townsend mill.
Ken McMillen, PUD board chairman, called the agreement “an important day for Jefferson County” as it is the first step to providing electrical service to one of the county’s key employers.
The Port Townsend Paper mill, which employs some 300 people, is the largest private employer in East Jefferson County.
The PUD board authorized general manager Jim Parker to execute two agreements.
The first contract will provide service to the mill’s old corrugated container facility, while the second provides service to the remainder of the mill.
No price for the electricity was given.
The PUD has agreed to provide electric service that will fully recover all of its costs.
Last July, Jefferson PUD and Puget Sound Energy reached an agreement for the PUD to purchase PSE’s Jefferson County electric utility facilities.
The PUD plans to begin operating the system in or before July 2013.
Port Townsend Paper makes and sells unbleached kraft pulp, jumbo roll kraft paper and kraft linerboard.