(The Center Square) – Voters in Kitsap County will decide this election cycle whether to let their public utility district get into the power business and move toward studying a shift away from Puget Sound Energy.
The vote is considered a test of whether a shift to public power could bring down skyrocketing power bills and potentially inspire other parts of the state to move away from PSE.
PSE has spent millions in opposition to Proposition One.
“It’s important for people to understand that what they’re voting on is the ability for the public utility commissioners – three elected folks from Kitsap County – to condemn all of the PSE infrastructure in the county, at any time without a second vote,” said PSE’s Matt Steuerwalt, senior vice president of external affairs for Puget Sound Energy in a Thursday interview with The Center Square.
“They’ve said they would do a study after the vote comes. They’ve also said they don’t have the money to do the study, and they would have to stop a water project or a fiber project just to do the study. So, if I was an existing customer of the PUD, I’d wonder why am I not getting my water project or my fiber project that I was promised with the money that I paid to do that,” he added.
Proposition 1 would give Kitsap Public Utility District the authority to explore providing electric service, starting with a feasibility study of the costs and logistics, estimated to cost up to $500,000.
Kimberly Funk, Senior Public Relations Manager for Kitsap Public Utility District, responded to questions via email about PSE’s assertions in opposition to Prop 1.
“The ballot measure asks voters whether KPUD should be authorized to construct or acquire electric facilities for the generation, transmission or distribution of electric power, as provided under RCW 54.08.070. It is not a vote to condemn PSE’s infrastructure, transfer ownership of its facilities or immediately begin providing electric service,” wrote Funk.
“Approval of this ballot measure would not, by itself, initiate a condemnation proceeding or result in an automatic or blanket taking of PSE infrastructure. Any potential acquisition would require separate action by the Board and would be subject to the applicable statutory and court-supervised legal process.”
The Center Square asked Steuerwalt at PSE about 30% phased-in rate hikes the investor-owned company is requesting.
“It is true that our bills have gone up a bit in the last five years. We’re totally aware of that. We hear the customers, we understand the challenge. I would like to make sure that all the Kitsap County customers know about all the programs that we have to help customers who are struggling,” Steuerwalt said.
“We have programs to help with bill payments. We have programs that give you discounts. All of those are on our website, and a lot of people are eligible for things that they’re not taking advantage of.”
If voters in Kitsap County approve Proposition One, it could set the stage for KPUD to take over electric service for about 130,000 electric customers, which would amount to more than 10% of PSE’s electric customers.
PSE says it needs to raise rates to fund massive multi-billion-dollar infrastructure investments, and to comply with strict Washington state clean energy mandates.
The Clean Energy Transformation Act and the Climate Commitment Act mandate that PSE meet clean energy goals by 2030. The requirement is that PSE transition away from fossil fuels and provide 80% of its electricity from renewable or non-emitting resources by 2030-2033.
It will require billions of dollars in new wind, solar, and battery storage projects.
“It’s gonna be really hard,” said Steuerwalt. “We have to get to that 2030 number. We’ve doubled our renewables since CETA passed and we’re still a good ways away. I think if we’re going to get there, it’s going to be because we get some help.”
“Maybe the Legislature is willing to think about some flexibility. We have to climb a pretty big hill,” he added.
When PSE made their case for the increase in power rates earlier this year, the utility said their spending plan to meet customer demand and comply with all the clean energy mandates amounts to more than $3.6 billion. The recovery of these project costs will be spread over decades, according to PSE.
KPUD told The Center Square at this point, there are no decisions regarding a future electric system, its costs or how it might be financed.
“KPUD’s role throughout this process has been to provide the public with factual information about the ballot measure, what it would authorize and what it would not,” Funk said.
“We recognize that voters will have differing perspectives, and our responsibility is to help ensure they understand the measure and the potential steps that could follow.”
Proposition 1 is on the Nov. 3 ballot in Kitsap County. As of late Thursday, 35.87% of Kitsap County voters had returned ballots, according to the Secretary of State.
