News and Currents
Peninsula Daily News
Article published Apr 15, 2008
Jefferson County commissioners warm to studying PUD as power provider
By Jeff Chew, Peninsula Daily News
PORT TOWNSEND — Jefferson County commissioners could join
with the public utility district, the city and port to share expenses
to determine how a power-providing PUD would affect the county.
After hearing a report from Jefferson County Public Utility District
General Manager Jim Parker on Monday, county commissioners indicated
they would formally address the matter during their regular meeting
next Monday.
At issue is whether the PUD, which now handles water and sewer
services for parts of the county, should be granted electrical power
authority when Puget Sound Energy's franchise for East Jefferson
County expires.
The city is asking PUD, the port, city and county conduct a feasibility
study while Jefferson County residents collect petition signatures
to bring PUD power authority to a November vote.
The study could cost between $20,000 and $30,000, said Parker,
and it would update a study PUD contracted in 2000.
Besides the estimated creation of more than 30 local jobs if the
PUD were to land power authority from PSE, Parker said the federal
Bonneville Power Administration, which sells wholesale power to
utility districts in Clallam and Mason counties, would sell Jefferson
County PUD cheaper power as well.
"Puget Sound Energy is being bought out," Parker told
the county commissioners Monday morning in their courthouse chambers.
"They are more of an investment company. They may be willing
to sell off their investments . . . so it may be a shift in the
whole philosophy of the company."
A Canadian investment consortium that recently merged with PSE
is led by Macquarie Infrastructure Partners, the Canada Pension
Plan Investment Board and British Columbia Investment Management
Corp., and also includes Alberta Investment Management, Macquarie-FSS
Infrastructure Trust and Macquarie Bank Ltd.
Parker said the Jefferson County study would focus on the advantages
of PUD taking over power authority rather than how to take over
PSE's Jefferson franchise.
He said PSE "is not doing a bad job at all — we just
want to look at the options."
With Canadian owners and the Australian bank in charge, PUD Commissioner
Dana Roberts raised concerns about PSE handing down power rate increases
to increase profits.
Roberts said he checked with residents circulating petitions, and
more than 1,600 signatures have been collected. Those signatures
have not been validated as those of register voters.
Needed by July 3 are 1,626 registered-voter signatures to place
the question on the Nov. 4 ballot.
Roberts and Judy Surber, city senior planner, said the PUD would
only have until 2009 to receive "preferential power" from
Bonneville.
Representatives of Citizens for Local Power and the city's Alternative
Electric Management Committee have already urged Jefferson County
PUD to participate in the study and to support PUD power authority.
County Commissioner John Austin, D-Port Ludlow, said he saw PUD
power authority "as a good chance to have a local cooperative."
Parker, however, said the county instead might want to go straight
to Bonneville Power Administration to secure cheaper power rates.
A Puget Sound Energy official last month threatened Jefferson County
Public Utility District commissioners with legal action if county
voters give the district the authority to provide energy and the
agency acts to do so.
"It is true that Puget Sound Energy is not interested in selling
our authority," Terry Oxley, PSE director of community services,
told the PUD commissioners.
"There would be litigation."
Bellevue-based PSE's franchise to provide electricity in East Jefferson
will end Dec. 31, 2010.
Jefferson County Editor Jeff Chew can be reached at 360-385-2335
or jeff.chew@peninsuladailynews.com
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