News and Currents
Kitsap Sun, April 24, 2008
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Area Counties Broach Question: Who Should Provide Electricity?
By Christopher Dunagan
Jefferson County voters may get the opportunity in November to
decide whether their local government should go into the electricity
business.
A petition being circulated countywide appears to have enough signatures
to place an electricity measure on the ballot, said Steve Hamm of
the group Citizens for Local Power in Jefferson County. If approved,
the ballot measure would encourage the Jefferson County Public Utility
District to take over power distribution and rate-setting in eastern
Jefferson County.
Meanwhile, Kitsap County Public Utility District was to release
new survey results Friday that seems to show that Kitsap County
residents are not especially interested in public ownership of the
electrical utility.
The heightened discussion about utility ownership comes amid plans
by Puget Sound Energy to merge with a consortium of private investors
from Australia, Canada and the United States. Stockholders of PSE
approved the merger last week. The $7.4-billion deal still requires
approval of state and federal agencies.
David Siburg of Kitsap PUD said he has heard concerns that the
merger might mean higher electricity rates for PSE customers throughout
the region. Next to personnel, electricity is mostly costly expense
for the PUD, which operates wells and water systems throughout the
county, he said.
The survey, a version of which was first conducted in Skagit County,
was designed to determine whether Kitsap County residents are satisfied
with their electrical service and whether they might be interested
in a change, Siburg said.
"We were surprised to find out that most people are not even
aware that the merger is taking place," he said, noting that
the survey, conducted in March, preceded recent news reports about
the merger.
As a result of the survey, Kitsap PUD commissioners don't intend
to take any action regarding electrical service, but they remain
open to future discussions, Siburg said.
"Now we have a survey with baseline data that we can use to
gauge any changes in public opinion in a year or two," he added.
Commissioners for Skagit County PUD are studying the prospect of
taking over electrical service from Puget Sound Energy. A feasibility
study outlining the costs and benefits to county residents is scheduled
for completion in May.
Jefferson County PUD commissioners are seeking a consultant for
a similar feasibility study, which they hope to have completed by
August or September — in time for the public to digest the
information before the vote in November, said PUD Commissioner Dana
Roberts.
A previous feasibility study, conducted in 2000, concluded that
the county could benefit by taking over the electrical system.
Jim Parker, manager of Jefferson County PUD, said public utilities
obtain better wholesale rates from Bonneville Power Administration,
which operates the federally owned dams. Furthermore, public utilities
don't have to pay corporate taxes or make a profit for their shareholders.
The PUD commissioners could have chosen to place an electricity
referendum before county voters, but they said it would have more
meaning if voters signed petitions.
"Not that we weren't in favor of putting it on the ballot,"
Roberts said, "but Jefferson County is small enough that people
don't like to be told what they have to vote on. For the board to
put it on the ballot would not have the same message."
Hamm, who is leading the signature drive, said the law requires
10 percent of the number that voted in the last general election,
which would amount to 1,626 signatures. That number has been exceeded,
he said, but signature-gathering will continue to make up for anyone
who signed without being a registered voter.
If Jefferson County were to take over electrical service, it would
not include the western part of the county near the ocean, Roberts
said. That area is served by PUDs in Clallam and Grays Harbor counties.
Nor would there be any change for areas south of Mount Walker, including
Brinnon, which are served by Mason County PUD 1.
Hamm said the city of Port Townsend has long discussed taking over
electrical service within the city, but the City Council wants to
see if the entire East Jefferson area could be included.
Besides better controlling the costs, he said, a public utility
could encourage alternative energy supplies, such as solar, wind
and tidal energy.
Hamm said he would like Kitsap County officials to take a second
look at the issue this year, because a vote can be taken only in
even-numbered years.
Gretchen Aliabadi, spokeswoman for Puget Sound Energy, said any
fair appraisal will show that PSE is the best service provider over
the long run.
"We've been meeting with the community, trying to understand
what their concerns are," she said, adding that a new office
will be opened in Port Townsend.
The company has been highly supportive of private energy sources,
including solar, being added to the electrical grid, she said, and
the company has continued to invest in the infrastructure —
including a new $5 million substation in Chimacum.
SURVEY RESULTS
A survey of about 300 Kitsap County residents by Kitsap PUD shows
little dissatisfaction with their electrical service. Of those questioned:
86 percent said their utility provides excellent or good service,
with 13 percent saying the service is fair or poor.
77 percent expressed satisfaction with the restoration of service
after a storm, compared with 22 percent who were not satisfied.
44 percent of Kitsap residents said they would not switch utilities
if they had a choice. 24 percent said they would, and 32 percent
were not sure.
36 percent realized their electrical utility was a for-profit corporation.
19 percent thought it was a nonprofit group, and 38 percent did
not know.
7 percent tended to support a buy-out of Puget Sound Energy, 20
percent tended to oppose it; and 73 percent had no opinion.
62 percent said that if Puget Sound Energy, a community-owned utility
should buy it. 13 percent favored a corporation and 24 percent were
not sure.
© 2007 Kitsap Sun
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