With utility merger hearings a week away and a public electricity authorization request on the ballot in November, municipalities and local governments may have to decide where they stand on the divisive issue.

That brought Puget Sound Energy Chief Operating Officer Bert Valdman and Utilipoint CEO Robert Bellemare to the Skagit Council of Governments on Wednesday.

Like Skagit Public Utility District No. 1, which offered a presentation at a previous council meeting, Bellemare and Valdman hoped to convince the gathering of mayors, county commissioners and other elected officials that their company should continue to provide electricity in Skagit County.

Local government heads did not offer a direct opinion on the matter at the meeting, but several agreed that utility taxes would be one of many issues — public utilities are exempt from such taxes, which could represent a major loss for some of the municipalities.

Skagit cities may invite PSE and the PUD to meetings to present the issues, and the city councils may even form official opinions or endorsements.

“Probably before it comes to a vote, it will come before the council,” Burlington Mayor Ed Brunz said.

The public debate stems from Bellevue-based PSE’s announcement in October of a proposed $7.4 billion merger with the Macquarie Consortium, an international investment group based in Australia.

PSE claims the merger will help fund needed infrastructure improvements, but some Skagit County and Whidbey Island residents worry that foreign ownership could hurt local service and raise electricity rates.

PSE, electric customers and other stakeholders will converge on Olympia next week for a series of public hearings with the Washington Utility and Transportation Commission on the merger and PSE’s rate hike request.

In July, PUD commissioners unanimously approved a resolution to place an item on the November ballot asking for voter approval to pursue public power, emerging as an alternative to PSE.

The Revised Code of Washington includes a section that allows local utility districts to condemn privately owned electric utilities and purchase the property. If public ownership is approved by voters in November, state law gives the PUD 10 years to establish an electric utility.

Both prospective purchasing entities claim through opposing feasibility studies that selling to the other will result in higher rates and less accountability to the public. As a privately owned utility, PSE will not be held to the same scrutiny as it was when publicly traded. The PUD will not be required to report to the WUTC for rate increases.

Most at the meeting, including Mount Vernon Mayor Bud Norris, were just trying to get their heads around the complicated debate.

“I’m still trying to form an opinion,” Norris said. “Today was an attempt to educate myself.”

Aaron Burkhalter can be reached at 360-416-2141 or .