PORT HADLOCK — Thursday talks with Puget Sound Energy representatives about Jefferson County Public Utility District venturing into providing electric service were productive, said the utility’s commission president.
“They’re willing to help us and make a go of it. They’re wondering where we’re going,” Wayne King said after the meeting.
He attended the gathering with PUD General Manager Jim Parker and PSE’s Karl Karzmar, who was appointed to work with PUD on the prospect.
Tim Caldwell, PSE’s Port Townsend office manager, also attended.
Jefferson County PUD leaders, who in November received voter-granted authority to provide electric service in Jefferson County, are seriously studying and discussing how PUD can acquire PSE’s facilities, which PSE representatives have said are worth more than $100 million.
PUD’s consultants, D. Hittle and Associates, however, recently valued PSE’s facilities at about $47.1 million.
PUD now provides only water and sewer services in East Jefferson County.
The PUD commissioners on Wednesday night approved publishing requests for qualifications for a project manager and legal counsel, who would help the agency get into the power utility business.
The part-time positions will be advertised in the Seattle Daily Journal of Commerce, Parker said.
King said he hopes to avoid condemnation proceedings, which he fears would be a costly way to acquire PSE’s multimillion-dollar facilities in East Jefferson County.
“I told them I never discussed condemnation,” King said. “I hope we can get it done with as little money spent as possible.”
King said that monthly meetings between PUD and PSE are likely.
“I would much rather sit down and talk face-to-face than have a couple of lawyers talk for us,” King said.
King, who admits he feels pressure from those who support PUD power service, said that the county utility is moving at “nano lightspeed for government” toward getting in to the power business.
“We’ve got 10 years to do it,” he said.
PSE
Contacted Thursday, Karzmar said, “It was a good meeting,” but he referred a reporter to PSE’s media representative for more details.
PSE spokeswoman Gretchen Aliabadi said that she was not prepared to discuss the meeting with PUD Thursday night but that she would contact PSE officials today to get their comments.
King said he expects the PUD commissioners to hire a project manager in March or April.
“There are so many steps before we get really serious,” King said. “We’re still checking the temperature of the water.”
The PUD may just hire its existing bond counsel, King said.
PUD Commissioner Dana Roberts said he was hearing citizen comments advising the utility to hire an attorney.
“They also asked about hiring locally as much as possible,” Robert said.
The PUD eventually will need to hire a public relations person to handle new releases and a newsletter, he said.
The PUD commissioners have budgeted $200,000 for the power project in 2009, he said.
BPA power
Parker has met once with Bonneville Power Authority officials, telling them of the county utility’s intentions to move forward on power authority.
D. Hittle and Associates has strongly urged PUD to fast-track obtaining wholesale power from BPA while considering acquisition of PSE’s facilities.
Acquiring BPA wholesale power would take up to three years. The PUD must prove that it owns the needed power transmission system, and that it can pay for the power BPA delivers.
PUD hired Hittle three months before county voters on Nov. 4 handily approved granting the PUD the authority to provide electric service to about 18,200 customers, 84 percent of which would be residential.
The consultant concluded it was feasible for PUD to provide power.
PSE, which falls under the jurisdiction of Washington Utility and Transportation Commission, does not qualify for BPA rates as a private corporation.
PUD would work as a nonprofit government power provider.
The purchase price could be negotiated between PUD and PSE or established through court condemnation proceedings — or PUD could choose to build its own facilities.
An appraiser team would be needed to determine the cost of the system and an engineer would have to sign off on the system.
One thing was certain to King: “We’ve got to make some big decisions this year that will affect the future of this county.”
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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.
