To the editor:
A front page headline last Saturday about the formation of a PUD read, “Takeover could cost hundreds of millions.” It was a quote from Puget Sound Energy. While the electric infrastructure will be costly, there are some factors to keep in mind.
PSE would like to get paid replacement costs for its infrastructure, but historically PUDs have paid an amount somewhere between its depreciated value (what PSE is paying taxes on) and actual replacement cost. Quite a difference.
The comparison with what the Skagit PUD will pay for their infrastructure should be adjusted considerably because of the Skagit hydro dams included in their purchase price.
Property taxes are traditionally used by PUDs to obtain seed money prior to purchase of infrastructure. The rates are cost-based and not necessarily the maximum allowed by the state as implied in Monday’s article.
Currently we are the renters of our electric system. Starting and activating a PUD is quite similar to a family scraping together a down payment and obtaining a mortgage for their first home. The family is investing in their future and security and looking forward to the day when the mortgage is paid off. They’ll have something very significant to pass on to their children.
“Very enthusiastic” characterizes the overwhelming reaction from people who were given an opportunity to sign the petition to establish a Whidbey PUD. And, the question of financing was certainly a topic on everyone’s mind.
Right now, we can only roughly guess what our electric system will cost to purchase. Like any prudent homebuyer, all of us would be interested only in a sensible investment. As research is performed and published, we will be able to make an informed decision by election time in November.
Electric utilities are very profitable and as a corporation, PSE naturally wants to protect its system from being purchased. A PUD is a not-for-profit business that can redirect those profits into “paying off the mortgage.”
When the dust settles, we’ll have a much clearer idea of how we want to vote in November. This may well be a golden opportunity for us to take significant control of our electric energy future.
Bob Kuehn
Clinton
