The PUD receives approximately 5 percent of its power from the Everett Cogeneration Project built at Kimberly-Clark Corporation’s plant on the Everett waterfront. This project converts wood-waste into steam for Kimberly-Clark’s paper-making business and also generates enough electricity for about 21,000 homes.

Completed in 1995, the Everett Cogen Project is one of the largest cogeneration facilities in the Pacific Northwest.

On November 1, 2006, Hampton Lumber's cogeneration plant in Darrington became commercially operable, providing it with an economical source of steam to dry lumber in its drying kilns. At the same time, since the wood-waste is consumed at the plant as fuel, it also solves another problem by not having to haul away the waste by trucks. For the PUD, the plant creates another renewable resource to add to the utility's power supply portfolio. The cogeneration plant has produced one to two megawatts on average - or enough electricity to power about 1,100 homes.