PORT TOWNSEND — By this time next year, East Jefferson County residents will buy electrical power locally, said public utility district officials, now that a necessary loan has been approved.
The U.S. Department of Agriculture’s Rural Utilities Service informed the Jefferson Public Utility District No. 1 on Tuesday that its $115 million loan guarantee was approved.
That will provide the money needed for the purchase of electrical power infrastructure from Puget Sound Energy.
“This is a great day for Jefferson County,” said PUD Commissioner Wayne King.
“We will provide power for the community and some good jobs for the public.”
The approval fax was discovered by PUD Manager Jim Parker when he arrived at work at 9 a.m.
The approval was short and to the point, in contrast with the detailed application the PUD had to complete as part of the loan process.
“It was quite complicated. They wanted a lot of details,” said PUD board President Barney Burke about the application.
“This was a positive thing,” he added.
“As a taxpayer, you are happy when the government has such a careful process, and as a PUD, we appreciate the scrutiny they gave our business plan,” Burke said.
In 2008, voters approved the idea of the public utility district providing electrical service in East Jefferson County, and the district has worked on the switch from PSE since then.
The PUD plans to begin operating the electric utility April 1, 2013.
It is counting down to that date on its website at www.jeffpud.org.
At the transition time, the PUD expects to have between 25 and 30 employees.
The public utility district now has nine employees and operates 12 water and five sewer utilities serving 3,500 customers.
PSE serves approximately 18,000 residential, commercial and industrial customers in Jefferson County.
Burke said hiring will begin later this year, and he expected that many of those hired will be local.
“We have already heard from a few people around here who have the needed skills and want to work for us,” he said.
Burke said the customers will see the difference in the appearance of their power bill and also will eventually have a say in how the company is operated.
“No disrespect to the PSE, but it is a big corporation, and the decisions are made by the people at the top without talking to their customers,” Burke said.
“We will include our customers in discussions about conservation programs and low-income discounts.”
Burke said the PUD has not yet decided how the public input would be handled but expected to have a website where comments could be exchanged.
Burke said the commissioners had been anticipating an answer about the loan guarantee for several weeks and had prepared a press release to be distributed as soon as it was approved.
The PUD heard that a decision was close Monday and scheduled a special meeting for 1 p.m. Tuesday to make the announcement.
When it didn’t come through Monday, staff were instructed to check the fax machine to make sure it had paper in its tray, Burke said.
During the transition, PSE will continue to own and operate the electrical system in Jefferson County, with offices in Port Townsend and Four Corners still open for business.
After the transition, the Four Corners office will be the center of maintenance and operations, Burke said.
PSE will work closely with the public utility district and communicate with its customers regarding the closing of their PSE electric accounts, as well as the termination of various PSE energy-efficiency, renewable-energy, customer service and community programs in Jefferson County.
“PSE hasn’t been a willing seller, but they have been a great partner in their helping us make this a success,” Burke said.
Burke said the process was a group effort. He thanked Parker, King and Commissioner Ken McMillen, as well as Burke’s predecessor, Dana Roberts, who died in 2009.
Burke also acknowledged help from staff, lawyers, consultants and the Bonneville Power Administration.
“It took a whole lot of people to row this boat,” Burke said.
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or at charlie.bermant@peninsuladailynews.com.
