PUD
explores electrical venture
Water utility discusses idea with local
government officials
Franny White can be reached at 360-416-2148 or
fwhite@skagitvalleyherald.com
By FRANNY WHITE
Staff Writer
Officials at the public utility that provides
water to about 60 percent of Skagit County’s residents are exploring whether to
add electricity to its services.
The Skagit
County Public Utilities District may conduct a feasibility study and a survey of
customers to help its deliberations. If results are favorable, a measure
formally asking for county voters’ support could be on the ballot as soon as
November’s general election.
Talks about the
idea have been taking place with several local government officials since
January, said PUD General Manager Dave Johnson.
The issue comes after the board of the publicly
traded Puget Sound Energy approved the Bellevue-based utility’s sale to
Macquarie Consortium, a privately held international investment firm. PSE’s
sale, valued at $7.4 billion, is awaiting regulatory approval.
PUD officials say citizens and local businesses
have encouraged it to become an electric provider out of concern that Macquarie,
an association of investment groups and pensions funds in New York, Canada and
Australia, would not sufficiently consider local
needs.
The PUD has not discussed the concept
with PSE yet. Johnson said the PUD would try to negotiate a sale of PSE property
if the local utility decided to become a power provider.
Even if the utility was unwilling to sell, the
utility could force the issue. State law allows public utility districts to use
eminent domain procedures to condemn, buy or acquire privately owned property
and facilities.
When a reporter called PSE
Wednesday for comment, a spokeswoman said the company was unaware of the
discussions.
“It was a surprise to us,” said
Martha Monfried, director of corporate communciations. “We’ve been providing a
service to the county for years and plan on continuing to do so. We’re not aware
of any service issues.”
By Wednesday afternoon,
she said PSE had set up a meeting with the PUD for Monday to discuss the matter.
As for the pending sale of PSE to international
investors, Monfriend said concerns about ownership across borders could be a
result of a “misunderstanding.” As a publicly traded company, she said PSE
already has international investors.
“We’re
changing one set of investors for another,” she said. “It doesn’t change who we
area as a utility. We would continue to be regulated by the Washington Public
Utilities and Transportation Commission. We would continue to be regulated by
the Federal Energy Regulatory Commission. We will continue to employ more than
2,000 people in Washington. We will continue to have our leadership in place.”
While the PUD’s discussions are in the early
stages, the matter could appear before voters as early as N o v e m b e r i f t
h e P U D decides to pursue it. State law only allows public utility districts
to put such proposals on ballots during evennumbered years.
To make it in time for this year’s election,
commissioners would have to file a resolution with the Skagit County Auditor’s
office by Aug. 12.
“It should be left up to the
people of Skagit County to determine what direction they want to take their
utility,” PUD Commissioner Robbie Robertson said.
But even if such a proposition receives voter
support, the PUD wouldn’t automatically offer electricity. The PUD would first
have to conduct a more in-depth study to determine if becoming a power provider
would be economically feasible, Johnson said.