This would seem to be an opportunity for entrepreneurship. Where there is excess electrical energy, capture that energy in electrochemistry, hydrogen production, pumped storage, plating.
I agree with your take- if the supply goes up, costs should come dwn, not be artificially “stabilized” to protect some investment that was, probably, 90% tax funded anyway.
Its the cart before the horse as I see it. The grid needs to be worked on first.
But really it came down to the state of Washington denying hydropower a renewable classification to meet the requirements of the 2006 law. The utilities with no need for additional renewable still have to comply with the law.
You make a good point that all that unused power is attractive. I know they are locating a lot of server farms in Washington counties with cheap hydropower. I wonder if you could just as easily build them at the windmill sites?