MOUNT VERNON — A public takeover of Puget Sound Energy’s electrical power facilities in Skagit County is either a “unique opportunity” or a colossal risk, opposing speakers said at a forum Wednesday night.
About 200 people attended the event at McIntyre Hall, which was held to discuss the possibility that Skagit Public Utility District No. 1 could take over PSE’s electric infrastructure.
PUD General Manager Dave Johnson called the possibility a “unique opportunity.”
PSE officials countered that a locally elected commission could not oversee the complicated business of electricity and warned that ratepayers could face higher electric bills.
The PUD is asking voters for permission to take over PSE’s electric infrastructure in the county, which would create the third-largest public electric utility in Washington and the first of its kind since Snohomish established a public utility 60 years ago.
Voters will get the next say on their ballots, which were mailed Wednesday.
Representatives from PSE, Skagit PUD and the Washington Public Utility District Association debated the issue in a forum sponsored by the Economic Development Association of Skagit County, The Skagit Valley Herald and Skagit Valley College.
During the discussion, residents learned that the market value of PSE’s infrastructure in Skagit County would be determined in court, that the PUD has no obligation to seek another vote before condemning PSE’s property and that the low rates promised by the PUD are dependent on acquiring the Baker River Dam, all of which could be a five-year process.
The opposing sides debated the value of the infrastructure, who could provide the best rates and which had the corner on renewable energy.
PUD and its supporters first pushed for the vote when PSE announced it would attempt to merge with an international collection of investment companies known as the Macquarie Consortium.
Burt Valdman, PSE chief operations officer, agreed that the opportunity was unique, noting that the last electric PUD of a similar size formed in Snohomish County 60 years ago.
Steve Johnson, executive director of the state utilities association, said the last public utility of any size formed in Washington state was in Asotin County in 1985. Asked how many customers the utility serves, Johnson answered, “four.”
Valdman suggested that it is far more difficult to form a public electrical utility today than it was 60 years ago, when power from Columbia River dams was plentiful.
“We’re practical folk at PSE,” he said. “We generally don’t like to go with what’s unique; we like to go with what’s known.”
Valdman questioned the wisdom of forming a public electrical utility at a time when debt financing is difficult to acquire. He said that voters only get one chance to vote on the issue and that after that, the PUD can enter into a difficult, if not impossible, financing process.
By contrast, Valdman said PSE’s proposed merger guarantees the kind of financing needed to improve the existing infrastructure and keep rates low.
The public power organization’s Johnson said that with a locally controlled utility district, ratepayers can rely on lower rates provided by the Bonneville Power Administration and the security of easily accessible commissioners.
“With a community-owned utility, it’s managed by folks right here in Skagit County, your neighbors, folks you can talk to, that you can see at the grocery store,” Johnson said.
PUD proponents said PSE has higher rates than public utilities now and that its operations are meant to benefit top executives and shareholders.
Valdman argued that PSE is attempting to act in the best interest of the customers and that the decision to merge with Macquarie was not motivated by financial benefits to executives and shareholders.
Johnson argued that while PSE’s executives and shareholders will receive compensation for the merger, there is no personal gain to those advocating public ownership of electrical utilities.
“Nobody up here stands to make a nickel that I know of,” Johnson said. “Trust yourselves, trust that you can do this.”
By AARON BURKHALTER and TAHLIA GANSER
Staff writers
