The question of whether the Skagit Public Utility District should attempt to take over Puget Sound Energy’s electric power system in Skagit County is a long way from settled. But there is no question that the PUD faces the bigger challenge in making its case.
The appealing populist notion of a consumer-owned utility certainly resonates with many local residents. Philosophically, it’s attractive. As a practical matter, real-world considerations make it a daunting proposition at best.
That’s not to say that the PUD should or will fail if it pursues such a takeover. The issue is that such a course would be uphill and steep. At least the PUD would have the benefit of public sentiment on its side.
A recent PUD survey showed widespread public support for taking over PSE’s operations. No surprise there — there’s nothing at risk when answering yes to such a question.
Let’s see what happens when the hard costs are toted up and the taxpayer gets the tab. We’re dubious that a Skagit County electorate — which has been reluctant to approve school district bond issue requests and will be asked to finance essential local facilities such as a new county jail — would be willing to take on the enormous debt load and long-term financial responsibility for an electrical system.
The bottom line: It’ll cost you. A lot. Ultimately, the community will have to decide how much it is willing to pay for a populist ideal.
The PUD takeover discussion was in large part prompted by the proposed merger of PSE into a new entity controlled by private investors — a move that many perceive as ominous for local service and community involvement.
But whoever runs the local power system must answer to the same state and federal regulators and meet the same state mandates, in particular those requiring development of alternative energy sources. A PUD-operated utility would have no advantage in that respect.
According to a study commissioned by PSE, there is virtually no economic upside to local ownership of the power system. Granted, the study was funded by PSE, but the utility hired an independent contractor from another state to review the potential scenario for conversion to public ownership.
Still to be heard from is the PUD’s commissioned study on the same topic, which may well reach different conclusions. If so, the discrepancies alone ought to cause Skagit County residents to ask tough questions of both sides.
• Editorials reflect the consensus opinion of the editorial board and are written by its members: Publisher L. Stedem Wood, Editor Don Nelson and City Editor Dick Clever. Signed columns reflect the authors’ viewpoints.
PUD’s quest for power pits ideal vs. reality
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