Okanogan PUD No. 1 has long-standing Service Territory Agreements with NVEC and OCEC that establish which utility provides service to customers in Okanogan County, as depicted in the map below. These agreements are authorized under RCW 54.48.020, which states as follows:

"The legislature hereby declares that the duplication of the electric lines and service of public utilities and cooperatives is uneconomical, may create unnecessary hazards to the public safety, discourages investment in permanent underground facilities, and is unattractive, and thus is contrary to the public interest and further declares that it is in the public interest for public utilities and cooperatives to enter into agreements for the purpose of avoiding or eliminating such duplication."

The PUD has transfer agreements with BPA that allow power to travel through PUD lines to OCEC, NVEC, and two irrigation districts in Okanogan County, who then manage the distribution to their own customers.  The PUD does not sell power to or set rates for any of these entities. Each utility enters into their own agreement with the BPA, and rates are set directly with the BPA.