PORT HADLOCK — The Jefferson County Public Utility District took a step closer to becoming the county’s electricity provider on Tuesday, when Bonneville Power Administration officials signed an agreement with the PUD during a formal ceremony.
At the same time, a BPA official said that electrical power costs may go up.
The PUD had signed the agreement on June 30 and submitted it to the BPA, which vetted the document and determined that all its requirements were met before the final honors were done at the PUD office Tuesday.
“This is a historic occasion,” said Mark Gendron, one of several BPA officials who tended the formal signing ceremony.
“It’s a great day for us and a great day for you.”
The pact with the federal power management agency is intended to secure low-cost electricity to more than 18,000 customers now served by the private Puget Sound Energy.
The PUD has agreed to purchase the PSE electrical infrastructure, making it the state’s first public utility to buy out a private utility’s franchise since 1949.
PUD officials said entering into a binding obligation with BPA would mean that the PUD qualifies for the federal agency’s lowest power rates, known as Tier 1, beginning in three years, or about June 30, 2013.
The agreement is expected to provide electricity at a lower cost than what is offered by PSE.
Gendron said Tuesday that BPA may raise its rates before the agreement takes affect.
“With the economy this is the absolute worst time to raise rates,” he said.
“We will do everything we can to keep them as low as possible, but there is a significant amount of wildlife mitigation included in our costs.”
The change to local control of electrical power also is expected to create about 30 jobs.
Several of those at Tuesday’s ceremony said the process went more smoothly and quickly than expected.
“The whole thing went ungodly fast,” said Ken McMillen, PUD board chairman.
“It is rewarding and gratifying that the system can work this quickly.”
Gendron said that stiff requirements exist for the delivery of federally subsidized power to a new customer, and that the PUD had supplied all the data needed to make that transfer.
PUD Commissioner Wayne King returned the compliment.
“This has been a pleasure,” he said, adding, “and I am happy that everything that I had heard about you is not true.
“You have always been up-front and honest with us,” King said.
King said the PUD’s familiarity with providing water systems prepared it for entering the electricity market, since there are many similarities between the two services.
In the future, he said, the PUD may hold separate meetings to deal with water and electrical issues.
King said that PUD, as a local provider, will offer a better service level than what has occurred during recent power failures.
“Right now, when there is a power outage they need to call Silverdale and get the repairman out of bed and drive up here to fix it,” King said.
“This will change, with local people providing the service.”
PUD Commissioner Barney Burke said that financing of the venture will take priority, with parallel efforts to determine the nature of the service.
“A lot of our users say they are interested in ‘green power’ systems,” he said.
“We’ll want to examine those possibilities and would like to hear ideas about what kind of service we should offer.”
Other details to be resolved include billing procedures and the design of a web site that provides customers real-time data about their power use.
For more information or to contact PUD commissioners, see www.jeffpud.org.
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or charlie.bermant@peninsuladailynews.com.
