Opposition heats up against city-run electric utility on Bainbridge

Public opposition to the proposal to create an island-based public power company continues to ramp up as city officials contemplate spending $100,000 on a feasibility study for a city-run electric utility.

Public opposition to the proposal to create an island-based public power company continues to ramp up as city officials contemplate spending $100,000 on a feasibility study for a city-run electric utility.

While voices in support of a locally owned utility have long dominated the public comment portion of council meetings, others in the community have started to step forward to raise concerns about a potential takeover of Puget Sound Energy’s operations on Bainbridge.

At last week’s council meeting, the criticism hit a new height as the Bainbridge Island Chamber of Commerce gave notice it was against any ouster of PSE.

Kelly Muldrow, chairman of the chamber board, said it had taken a position against the idea.

“The cost, source and reliability of our electrical power is of great importance to the Bainbridge Island business community, and after much discussion, the board of directors of the Bainbridge chamber of commerce feels it necessary to weigh in on the Island Power proposal currently before city council,” Muldrow said, reading a letter from the chamber board.

City officials and a task force made up of experts in financial, utility and other fields have scrutinized possible consultant firms that could analyze whether a Bainbridge owned-and-operated electric utility would be feasible.

Such an idea isn’t new on the island, however, it picked up steam last year when Island Power, the grassroots group promoting an island-run electric company, presented the council with a stack of petitions in favor of the idea.

In recent months, though, pushback on the proposal has intensified. Last week, the local chamber of commerce stepped into the fray.

Study too costly

In the chamber’s letter, the organization thanked Island Power, but said the city had more important things to focus on.

“We are quite fortunate to live and work in a place with an informed and politically active citizenry, and we appreciate Island Power bringing the issue before council,” Muldrow said. “However, given the slate of projects currently before the council and the various civic issues facing the island, the board is concerned about the use of city funds, nearly $100,000 as of the last proposal, to finance the proposed study.”

“We encourage the city and the public to consider focusing instead on gathering concerns and suggestions, and to work with PSE to see what can be done together collaboratively,” Muldrow said.

He agreed that power reliability was an important issue on the island and that infrastructure improvements are needed, but said the chamber board feels that Puget Sound Energy is best positioned to make the necessary changes.

“Over the past decade, PSE has proposed infrastructure improvements that would have prevented many of the power outages we’ve experienced over the last several years,” Muldrow added. “And the chamber board would like to encourage the island’s citizens, businesses and council to further investigate and support future improvements.”

The council is expected to talk again at its July 12 meeting on whether to hire a consultant firm to conduct a feasibility study on a city-owned electric utility.

Earlier concerns from council

Council members delayed a choice on a consultant during their May 10 meeting, when some on the council questioned the wisdom of spending $100,000 or more on a proposal that they said most of the island doesn’t support.

“About 25 percent of the people who know about this, support it, and about 75 percent of the people don’t support it,” Councilman Ron Peltier told his fellow council members.

“Most people are really frightened by the idea of Bainbridge Island city government taking over our electric utility. They don’t trust the city to run an electric facility,” he added.

“Until we inspire more confidence in the community, I think we’re going to be wasting money with a study,” Peltier said. “I don’t favor spending any money on a feasibility study until we know we have buy-in from the community.”

While others on the council said they could support spending money on the study, that didn’t mean they were already in favor of putting the proposal on the ballot for a public vote. A feasibility study would give them vital information before that next step, they said.

Peltier responded that the city hadn’t learned anything from its last ballot request, the $15 million proposal for a new police station that fell to defeat in a bigger-than-landslide loss of a 75 percent “no” vote.

“I’m just concerned this council hasn’t learned from that failure and you’re going to repeat it … with this issue,” Peltier said.

“Listen to the community, and listen to what they’re telling us.”

“Ron and I must hang out in the same circles, because he’s hearing the same thing I am,” added Councilwoman Sarah Blossom.

Blossom said the city didn’t need to spend $100,000, or $200,000, on an idea that people already think is bad.

“I don’t think people want it,” she said. “That’s money that could be spent elsewhere.”

While there were some familiar voices in support of the proposal at that May council meeting, there were also new voices of caution, as well.

Some of the most powerful came from the task force set up by the city to help with the selection of an outside consultant for the utility study.

Winifred Perkins, a committee member and formerly a manager for Florida Power & Light Co. and engineer for Bechtel Power Corp., doubted whether a $100,000 study would provide “tangible assurance” that a Bainbridge electric utility would provide the benefits that have been promised. She added the expensive study would be outdated before the island parts ways with PSE, if such a move is eventually approved by voters.

“The industry is changing so quickly today that what we read in 2016 isn’t necessarily going to be applicable in 2018 or 2025,” Perkins said.

“I just don’t think it’s quite ripe. I don’t think it’s ready for prime time yet,” she told the council.

“You can’t make a mistake on this. It’s not just money down the drain,” Perkins said. “It’s also people whose livelihoods are at stake, people whose health is at stake if they don’t have power.

“There are just so many consequences to bear in mind,” she said.

PSE chimes in

The growing chorus of critics includes PSE, which has hosted several meetings on the Island Power proposal as well as gatherings touting its plans for upcoming infrastructure upgrades on the system that powers Bainbridge.

Andy Wappler, PSE’s vice president of corporate affairs, said Bainbridge customers, including those who attended recent meetings or the 500 folks who participated in a telephone town hall, were largely against a switch.

“They like the service they are getting today; they want to continue to have PSE to be their provider,” Wappler said.

Some have also wondered what a city-run utility would look like.

“The answer really was, you wouldn’t know that for several years and you certainly won’t know those kinds of questions from the feasibility study,” he said.

PSE has also conducted polls on the idea, one last year and one this year, that was consistent with the input the company’s heard at its community meetings.

“People were opposed, about 2-to-1,” Wappler said.

In the most recent poll, conducted by EMC Research in Seattle, 64 were against an island utility, 30 percent were in favor, and 6 percent answered “don’t know.”

Study still needed

Steve Johnson, a founder of Island Power and a co-chairman, said the feasibility study may change some minds.

It would also bring an outside perspective to the debate.

“Yup, there’s been more criticism, but the full story isn’t out there.

“Let’s do the study and let the chips fall where they may,” Johnson said.