PORT HADLOCK — Despite pleas from Citizens for Local Power representatives for more public involvement in the process, Jefferson County Public Utility District commissioners Wednesday night said they were bound by a confidentiality agreement with Puget Sound Energy executives and could not discuss negotiations, costs for facilities or what might lie ahead.
The PUD is now in negotiations with PSE about the public utility possibly taking over the private company’s electric-service facilities. PSE now provides more than 18,000 East Jefferson County customers with power.
Citizens for Local Power successfully petitioned for a November 2008 election in which county voters granted PUD the authority to possibly provide power to what are now PSE customers.
Bill Wise, co-facilitator with Steve Hamm in that effort, on Wednesday urged the commissioners to reconsider their position and keep the public informed.
Wise’s main question to the PUD commissioners: “Do you plan to involve the public before you make a decision?”
PUD Commissioners Chairman Ken McMillen said that was not possible under the confidentiality agreement.
Rates and other issues
Wise said Citizens for Local Power wanted public comment to PUD on bottom-line issues such as rates, management and facilities should PUD go into business as an energy provider.
McMillen did say PUD representatives, including Manager Jim Parker and PUD Commissioner Wayne King, would again meet with PSE executives Feb. 17 in Seattle. A regular PUD commissioners meeting would follow at 5 p.m. Feb. 24, McMillen said, to “consider any discussions with PSE we have had.”
McMillen said he expected negotiations would be over by the Feb. 24 meeting.
The PUD, through its attorney, recently said the agency that now only provides water and sewer services would probably make a decision one way or another by mid-April.
Negotiations on a price for PSE’s East Jefferson County facilities would remain behind closed doors, the PUD commissioners said, because PUD’s lawyer, Kirk Gibson, and PSE executives and their attorneys want it that way.
Bill Wise, who was joined by Citizens for Local Power co-facilitator Steven Hamm, questioned the PUD commissioners about the possible extent of public involvement in the process before the PUD commissioner made a decision get into the electric business, reject it or go into condemnation proceedings with PSE.
Karl Karzmar, representing PSE as a liaison to PUD in the negotiations, said at the meeting that the agreement was largely based on state federal rules that did not allow public discussions of such settlement agreements.
“We had entered into that agreement for the mutual benefit of both parties,” Karzmar said.
McMillen, King and newly appointed PUD Commissioner Barney Burke made it clear that any public involvement was unlikely until PUD was free and clear of any negotiations with PSE.
The PUD commissioners reported that they have spend more than $450,000 on consultants and legal counsel since they began the process after the election about a year ago.
About $200,000 of that has been spent on legal fees, McMillen said.
More in two weeks
King said he wished the process could be more open.
“I wish I could tell you more,” he told Wise and Hamm, adding that more information would be released in the next two weeks.
But silence would remain the rule as to discussions about price and costs, King said, under the confidentiality agreement.
“With regard to public involvement, I’m not hearing a lot,” Wise concluded, urging PUD commissioners to reconsider.
Open government advocate Tom Thiersch of Port Townsend said he did not agree with the PUD’s position.
“It’s very disturbing to me that all this stuff is going on behind closed doors,” Thiersch told the commissioner.
Thiersch said he did not believe the PUD was acting in the public interest.
King reminded Theirsch that PSE was a private corporation, not public like PUD.
“If we did what you said we would have to go directly into condemnation,” King said, without further friendly negotiations with PSE executives including PSE Chief Executive Offer Steve Reynolds.
Thiersch said such secrecy only “raises an atmosphere of distrust.”
King said everything was being conducted above-board and to do otherwise “the deal would be over.”
PUD now serves more than 3,200 water customers in East Jefferson County but has never provided electrical power service.
By state law, the PUD has 10 years to exercise its authority.
PUD consultant D. Hittle & Associates Inc. estimates a cost of PSE’s facilities ranging from $35 million to $70 million, while PSE representatives have quoted a figure of $100 million or more.
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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.
