What do you mean by “Public Power”?
We mean “public power” in the sense that the Thurston County Public Utility District (PUD) would own, operate and maintain the electrical infrastructure in Thurston County as a non-profit public service, instead of county residents being forced to buy overpriced electricity from the for-profit, foreign monopoly Puget Sound Energy.
What are the benefits of Public Power?
1) Creates Local Jobs — PSE outsources most of the maintenance work for Thurston County, in favor of centralizing operations in King County. The Public Utility District (PUD) will hire local skilled workers based in Thurston. Local jobs means more money spent in our community… and that makes life richer for all of us.
2) More Reliable Service — Shorter overall power outages with Thurston County-based repair crews vs. getting whomever is available from the contractor’s pool of workers, few of whom live in Thurston County and none of whom are based here.
3) Energy Democracy with Local Control — Gives citizens oversight of the energy system in Olympia by allowing them to elect the people who manage it.
4) Lower Rates — Public Utilities nationwide have lower rates than corporate- or investor-owned Utilities (IOUs). Here in Washington, everyone who writes a check to PSE pays more for their electricity than anyone else in the state–significantly more than the rate-payers of Avista or PacifiCorp, the state’s other two privately-owned utilities. Public Power takes the profit out of what should be considered part of a commons — a public service that all of us use … why should a privately-held monopoly control something we all need to live our daily lives?
5) Reinvest millions of dollars into the local economy — Every year, Puget Sound Energy sends millions of dollars in profit OUT of Thurston and back to Australia, home of PSE’s parent company Macquarie. That’s MILLIONS of dollars that could be reinvested locally in our own community.
Public Power would keep this money in Thurston County. Since each dollar spent in local businesses multiplies about six times, this would add tens of millions to our economy every year!
Why will my rates be lower with a public utility?
Your electric rates will be lower for two reasons: First, because public power entities like PUDs and cities like Tacoma and Seattle who own their electric systems have first right to low-cost Bonneville Power Association (BPA) hydro power. Every PUD in the state of Washington has lower electric rates than PSE. Second, PUDs are non-profit municipal corporations. Unlike PSE, who pays its shareholders a WUTC-allowed 7.8% profit, and its executives huge salaries, the money from your electric bill goes to building and maintaining your electric system.
But PSE says it will cost MORE for electricity from the PUD. How do we know it won’t?
That’s exactly what they’ve said in all the other counties that had ballot initiatives on Public Power. If that’s the case, why do PSE’s rate-payers PAY MORE than any Public Utility customer?
Every single public power customer in the state pays at least 10% LESS that PSE customers pay, and some pay 58% less. Even Jefferson County, who will throw the switch on Public Power in May 2013, will have rates the same as or lower than Puget Sound Energy–from whom they bought their entire system! Jefferson County PUD customers will NOT PAY ridiculously high executive salaries or corporate profits, are eligible for at-cost federal hydropower, and pay lower interest rates on borrowing, so they can charge the same or lower rates.
There is no evidence to support the claim that Thurston County will be any different.
How does a public utility enhance democracy?
Getting power from a public source gives you a voice in how the source operates.
With Puget Sound Energy, the only people that have a voice are the owners of the private Australian/Canadian conglomerate, Macquarie. With a PUD, control rests with three elected commissioners. The PUD meetings are all open to the public and the Public Records Act requires that you can get any information you want about the PUD’s operations.
If you don’t like what the PUD is doing, you can vote out the commissioners and change it. If you don’t like what PSE is doing, you don’t have any options, other than to petition the Washington Utilities and Transportation Commission (WUTC), which sets PSE’s rates and terms of service–and has never denied them a rate increase while at the same time allows them up to a 7.8% return to their shareholders. If you own a business, you know how ridiculously high that is, especially in a recovering economy.
How much will this cost?
The PUD is conducting a business assessment study evaluating alternatives that might begin with only a portion of the County. Based on a total countywide assessment of PSE property of just over $130 million and a premium for acquisition, the initial costs for starting with part of the county might be in the range of $50 million. Experts tell us that the cost for the entire county will be about $170-220 million. These amounts can easily be raised by selling municipal revenue bonds (see below).
Thurston County taxpayers will NOT owe the debt; the PUD will. It will be paid off by part of the electric rate, just as the interest, depreciation, and shareholder return is currently a part of the PSE rate. This is a solid investment that will certainly pay off in the long run.
Where will the money come from?
Revenue municipal bonds allow communities to finance the furnishing of necessary local services, such as electricity, water, and waste treatment. Municipal bond financing is considered the cornerstone of public infrastructure programs and an important resource for public power systems. Community-owned utilities (PUDs, water and sewer districts, and Cities and Towns) regularly finance projects with municipal bonds.
In other words, the Thurston County PUD will pay for this just like the cities and counties across the country raise funds for infrastructure improvement. They will issue municipal bonds that will be easily paid off over 20 – 30 years by the revenue from the PUD’s electrical operations.
Will my taxes go up?
Not due to this initiative! Everything will be paid for with the revenues from the sales of electricity, at a lower cost to consumers since the PUD won’t be trying to reap a profit from them.
What if Puget Sound Energy doesn’t want to sell the electrical infrastructure to the PUD?
They don’t have a choice. If PSE doesn’t want to sell, Washington State Law allows the PUD to exercise its condemnation authority and force PSE to sell at fair market value. This is the choice of last resort and we’re hopeful that PSE will agree to sell at a price that is fair to both them and the people of Thurston County.
Has this been done anywhere else? Was it successful?
Thurston County is literally surrounded by public power. Today 55% of customers in Washington state are supplied by Public Power at lower rates than we pay PSE and with better reliability and higher customer satisfaction.
How do we know that the PUD is going to be able to manage the electric system well?
The Thurston County PUD has a long history of providing great service with another utility, water. Adding electricity will simply mean hiring people with experience, some of whom most likely are currently working for PSE.
The solution to a lack of experience is simple and used by businesses when they want to expand into a new market: you hire people with experience.
What does the ballot initiative say?
Who are you?
We are a Washington state-registered non-profit, working with a diverse group of local volunteers to bring public power to Thurston County. You can see who is on our Executive Board and find contact information for us on our Contact page. You can also interact with some of our members at our Facebook page.
How did you get so many signatures to get this on the ballot?
The people of Thurston County are fed up with PSE’s high rates, poor reliability, and crumbling infrastructure. They are ready for a change.
- We have an INCREDIBLE group of volunteers who collected in snow, rain, strong winds, and for long hours at a stretch, and who never gave up.
- We asked everyone we saw if they vote in Thurston County. If the answer was yes, we asked them to sign the petition.
How can I contribute to the success of the initiative?
Another thing you can do, is make a donation to help us cover the costs of running the campaign.
We’ve put together some of our essential materials for volunteers and friends of the Public Power campaign on our Campaign Resources page. Check it out!
* Public Power Facts — Thurston Public Power Initiative
* Statement On Public Power — Jim Lazar
* DHittle Report – Thurston PUD’s Electric Initial Business Assessment
* Thurston PUD Fact Sheet on Prop. 1 – This document was created by Thurston PUD staff.
* “Public Power: Shining a Light on Public Service” – American Public Power Assn.
* Public Power Costs Less
* Washington State Electric Rate Chart
* Refuting tax increase and other lies of the opponents to public power —Thurston Public Power Initiative
Articles related to Thurston Public Power Initiative
* “Public Power, Thurston Chamber and Our Community” – written by Calvin Johnson, and reprinted from the K Records website, Oct. 4, 2012
* “Public Power: Should Thurston County provide its own electricity?“—Olympia Power & Light, October 3, 2012
* “PSE says cost of takeover could reach a gazilion dollars!“—The Olympian, August 30, 2012
* “Should Thurston County switch to a public power system? Pro & Con“—The Olympian, July 26, 2012
* “Press Release Correcting the Olympian“—Thurston Public Power Initiative, July 20, 2012
* “Wash. County to vote on buying Puget Sound operations“—Platts Electric Power Daily, July 19, 2012
* “A little PUD goes big, or why you should pay attention to it this year“—Olympia Power & Light
* “Jim Lazar Responds to Questions on the Thurston Public Power Initiative“—Works in Progress, June 2012
* “The Democratic Right to Choose!“—Green Pages, Spring 2012
* “PSE backing group to fight Thurston power initiative“—The Olympian, May 10, 2012
* “The Daily Zero Gets It Wrong—Again”
* “Converting power supply to PUD no easy (or cheap) task“—The Olympian, May 6, 2012
* “Public Power Moves Closer to Reality in Thurston County“—Works in Progress, April 2012
* “Public Power at the Crossroads“—Works in Progress, March 2012
* “A Little Story About Mac and the Renter“—Green Pages, Winter 2012
* “Storm Shows Need for Change“—Works in Progress, February 2012
* “Why Public Power is Worth the Fight“—Works in Progress, January 2012
* WUTC Announcement of PSE’s May 2012 3.2% Rate Increase
* The True Cost of PSE Using Coal to Generate 54.7% of its Power