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PUDs say no, Bonneville changes the rules

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More than 81 percent of public utility districts (PUDs) in the state of Washington voted to approve a settlement with the Bonneville Power Administration (BPA) to end a years long dispute over public power rates.

However according to BPA's own conditions, 91 percent needed to sign by April 15 to validate the agreement. In light of its apparent defeat, the administration plans to change the terms of the agreement and try again.

Mason County PUDs 1 and 3 voted against the agreement.

The agreement will be up for a vote in June that will only require 75 percent of PUDs to sign, Mason County PUD 3 Power Supply Manager Jay Himlie said.

"I guess if you don't have success you just move the goal post and call it success," Himlie said.

The BPA agreement was designed to end a years long legal battle with PUDs over what the public utilities argue are illegally inflated power rates.

The rates are increased because of the residential exchange program, which subsidizes customers of private utilities with money from public power rates. While the program is perfectly legal, PUDs like Mason County PUD 3 say that the rates are inflated far too much.

The Washington State 9th Circuit Court of Appeals determined that between 2002 and 2007, the PUD 3 alone was overcharged $3,595,310 for their power rates through the residential exchange program.

BPA's agreement, which has gone through several drafts in recent months, would, among other things, set the exchange rates for 17 years and prohibit utilities from bringing further claims against Bonneville for that time.

Earlier this month, the PUD 3 commissioner voted against the settlement.

PUD 3 staff and commissioners are looking at their options for the future. One includes writing letters to commissions that approved the agreement, urging them to reconsider before the June deadline.

"It confirms suspicions of how much you can trust Bonneville," commissioner Bruce Jorgenson said.

PUD 3 staff members are also worried about what the split in votes could do to relationships between public utilities.

"It's splitting public power - we no longer speak with one voice," said PUD 3 manager Wyla Wood. "Who knows what that will mean in the future?"



Copyright 2011 Shelton-Mason County Journal, Shelton, Washington. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2011 Shelton-Mason County Journal Shelton, Washington. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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