Study shows 20% savings over PSE with public power utility

With access to low-cost power from the Bonneville Power Administration, a new electric-service public utility district would be able to charge rates up to 20 percent lower than rates projected for Puget Sound Energy, according to a study released today by the Washington Public Utility Districts Association. (View Study >>)
 
The analysis by EES Consulting, a Kirkland-based management consulting firm specializing in the energy and other natural-resource-based industries, found that PSE rates have gone up sharply over the past several years – nearly 25 percent since 2002, or almost twice the national average.

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Study shows no loss of tax revenues if PUDs acquire PSE assets

Public utility districts pay essentially the same taxes as investor-owned utilities and communities that switch from a for-profit electric utility to a nonprofit PUD should not see any loss of local tax revenues, according to a study released today by the Washington Public Utility Districts Association. (See Tax Study>>)
 
WPUDA Executive Director Steve Johnson said the association, which represents 22 PUDs that provide electric service, released the analysis to refute misinformation in communities considering new electric PUDs.
 
"The perception was that because PUDs are nonprofit utilities – which helps them hold down rates – that they don't pay taxes," Johnson said. "That simply isn't the case. PUDs pay millions of dollars in state and local taxes, just like any other business." 
 
The tax-comparison study, conducted by Mike Shay, former auditor/controller for the Snohomish County PUD, found that PUDs and investor-owned utilities both pay the state Public Utility Tax, Sales Tax and B&O Tax. Both also pay municipal taxes based on the gross revenues of electric sales.
 
While PUDs do not pay property taxes, the state imposes a "privilege tax" on public utility districts. While the two taxes are computed differently, Shay's analysis found that "the results of the tax are generally quite similar."
 
Shay, now an independent consultant, also noted that state law specifically provides that the privilege taxes a PUD pays on property it acquires from an investor-owned utility, such as PSE, will not be less than the amount of property tax paid by the for-profit utility.
 
In addition, state law requires PUDs that acquire assets of a for-profit utility to pay taxes directly to the local school district for any outstanding bonded indebtedness. Thirty-seven percent of the privilege taxes funds collected by the state also go for public schools.
 
"The short answer," Shay wrote, "is that a transition to a PUD electricity provider should not harm or reduce the revenues to a local taxing district."

Skagit County voters to decide on electricity future

The Skagit Public Utility District Board of Commissioners unanimously approved a resolution Tuesday to place a measure on the November General Election ballot seeking authorization to provide electrical power in Skagit County.

The measure will give voters a chance to decide if Skagit PUD should have the authority to purchase infrastructure and provide electric service in the county.

"Now is your chance—once in a lifetime—to make this decision," PUD Commissioner Al Littlefield said as he addressed the large crowd in attendance.

The ballot language, as approved by the Commissioners will read:
Shall Public Utility District No. 1 of Skagit County construct or acquire electric facilities for the generation, transmission or distribution of electric power?

Local control over essential services has been a central concern for many county residents since learning of the proposed Puget Sound Energy merger with Australia-based Macquarie Consortium. PUD Commissioner Jim Cook echoed those sentiments during his remarks in favor of the resolution.

"We need to protect our assets," Cook said.

Tuesday's decision culminates a 10-month fact-finding mission by the Skagit PUD Commissioners. As part of the decision process, the PUD conducted public opinion surveys to determine citizen support for public ownership of the electrical service in Skagit County.

Commissioner Robbie Robertson noted during his comment period that 79 percent of Skagit County voters wanted public ownership of the electrical system.

Skagit PUD also commissioned a study to determine the economic impact in Skagit County associated with public ownership. General Manager David Johnson presented the findings during his opening presentation.

The study projects that over a 10-year period 1,373 new jobs would be created in Skagit County with public ownership of the electrical system. With the lower electric rates, residents would have increased disposable income for making purchases. The total impact on business revenues for the county would be $471.5 million.

Related Documents:

• Economic Impacts of a Skagit County Electric PUD (Sommers)
  
  
• Preliminary Feasibility Study Public Utility District No. 1 of Skagit County Electric System Acquisition (D. Hittle & Associates)
  
  
• Skagit PUD Public Opinion Survey (EMC Research)
  
  
• Resolution No. 2134-08

Explore the wonders of the Skagit watershed with Letterbox Quest

Skagit PUD has joined with area environmental organizations and groups to hide 13 "letterboxes" up and down the Skagit Watershed.

Letterboxing is a great way to explore the natural wonders of Skagit County while learning how to help protect our watershed. Participants follow clues to discover hidden letterboxes, which include a journal (for stamping) and a stamp or stickers for participants to place in their own journal. In addition, participants collect a "magic word" to record at each site.

A special celebration is scheduled for October for everyone who completes the quest. Click here for a list of clues or stop by the PUD lobby.