PORT ANGELES — The Port Angeles City Council unanimously approved a pass-through payment of more than $46,000 to McKinley Mill for the installation of energy efficient lighting, a project that was started before the mill indefinitely shuttered its doors this August.

The payment will have no net financial impact on the city, said Scott Curtin, the city’s director of public works and utilities, due to a reimbursement by the Bonneville Power Administration (BPA).

In 2020, McKinley began the process of slowly replacing old light fixtures with high-efficiency lighting. Once the project was complete in 2023 and verified by BPA, the city agreed to reimburse the mill’s $46,657 in expenses.

BPA will then reimburse the city through its energy efficiency program.

“We’re kind of a pass through for that program,” Curtin said.

“It helps them with their capacity,” he added, noting that if organizations use less energy, BPA can extend its capacity for other customers without needing to create more infrastructure.

There is a likelihood that McKinley will receive a second, larger energy conservation payment through the same program, due to other energy improvement measures it has taken. Curtin was unsure what the amount of that reimbursement might be, although he said it would likely be remitted in the next one to two months.

Doug Johnson, senior spokesperson with BPA, said all the energy conservation measures that McKinley has undergone occurred before the mill announced its indefinite closure.

However, Curtin said the company is still paying a high premium for electricity. These reimbursements could help the company cover those costs, he added.

“That’s a massive industrial user down there,” he said. “This [energy incentive payment] is certainly helping likely ease a little bit of the pain.”

In July, McKinley’s parent company, Bio Pappel, announced the layoff of almost 200 employees and the temporary closure of the mill, citing market conditions as the reasoning behind the closure. As of October, Bio Pappel was still hoping to reopen McKinley if market conditions become more favorable in the future.

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Reporter Emma Maple can be reached by email at emma.maple@peninsuladailynews.com.