PUD accepts new residential exchange pact

Wahkiakum PUD commissioners voted to accept the residential exchange agreement with Bonneville Power Administration at their regular meeting Tuesday, for the second time.

On April 7, the commissioners voted to approve the agreement which changes the way investor owned utilities’ rates are calculated.

When the settlement was not approved by 91 percent of BPA customers needed to pass, BPA moved the threshold to 75 percent and requested another vote.

The Residential Exchange Program (REP) was Congress’ response to investor owned utility requests to have access to lower cost federal power. The settlement is an attempt to set the rates, rather than litigate them, and will be in effect for 17 years.

General Manager Tramblie has predicted the rate increase if the settlement is accepted would be 8.1 percent, and the rate increase without the settlement would be about 8.4 percent.

There’s a risk you could be subject to higher rates if you don’t accept it,” Tramblie said.

Newly appointed commissioner Gene Healy said, “Congress has a big appetite to square away the budget now,” referring to the lower cost power that has been provided to PUDs.

Commissioner Robert Jungers said he feared an outcry from other public utilities if the REP is passed.

“I’m feeling I should vote against it. We want to be in solidarity of other public utilities, but we don’t want to upset BPA, especially now, as we’re getting a sweet heart deal with the Cathlamet substation.”

“A utility’s vote is proportionate to its size, so Wahkiakum’s vote is not likely to affect the outcome,” Commissioner Dennis Reid said.

Sighing, Reid said, “It’s a tough deal. It’s the lesser of two evils.” The board voted unanimously to approve the agreement.

Commissioners voiced fear that the federal government would review the Bonneville Power Act of 1980 and could renege on its support of PUDs.

“If BPA was to sell PUDs power on the market, the cost could likely double,” Jungers said.

In other business, Tramblie reported two leaks on Puget Island, one that grew quickly last week. He reiterated the importance of replacing aging polybutylene pipe. The crew is working on East Sunny Sands Road at present.

Tramblie said he would provide more information about an automatic meter reading system. “It’s the way the industry is headed,” he said.

Commissioners will receive email on PUD servers, in an effort to minimize the risk of open records requests leaving personal computers open to disclosure.

Community member Lee Tischer asked if the agenda or minutes could also be distributed electronically.

“Anyone can be on the email distribution list for the agenda, PUD Auditor Erin Wilson said. She said she would work to make the minutes available on the website also.

Wilson reported that customers have been donating for those in need of help with utilities since the program was advertised.

The board recessed and commissioners planned to return for their first workshop session focused on future directions.