Jefferson County commissioners warm to studying PUD as power provider
By Jeff Chew, Peninsula Daily News
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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.
Jefferson PUD advantages
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.
Local cooperative?
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.
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Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or jeff.chew@peninsuladailynews.com.
Last modified: April 14. 2008 9:00PM