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Report lends little
more to PUD discussion

After a short evaluation the Oregon Office of Energy issues
its report on the Yamhill County people's utility district plan

By Schellene Clendenin, Newberg Graphic reporter
E-mail Schellene at sclendenin@eaglenewspapers.com
   After sifting through hours of testimony, both written and oral, the Oregon Office of Energy has released its recommendation concerning the establishment of a Yamhill County peoples utility district (PUD).
   The OOE report states, due to a lack of time and more comprehensive research, the department cannot make any specific recommendations on the formation of the PUD.
   “That is a decision for the voters to make, after evaluating many issues including the issues raised in this report,” the report said.
   “We can’t make a conclusion, but we’re not making a judgment either way,” said Michael Grainey, OOE director.
   This isn’t a detailed study of engineering feasibility, he added, saying “there are many uncertainties regarding legal issues that we don’t have the answer to.”
   Grainey said the report, which took just over a week to write, is not comprehensive. However, OOE officials listened to arguments both for and against formation of a PUD.
   “We got a lot of information from people on both sides,” he said.
   The information included questions concerning access to Bonneville Power Association power and taxes that might be levied under the PUD.
   “All of which are questions that we can’t answer at this time,” Grainey said.
   The OOE is required by law to hold a hearing and give its recommendations within 60 days of receiving a petition to form a PUD.
   The hearing, Grainey said, was the only role the OOE will play in the determination of the establishment of a PUD in Yamhill County. Under law, it is not the role of the OOE to make a decision either way.
   The next order of business, he said, will be for Yamhill County to hold its own hearings. The county will make any adjustments in boundaries and set the date for an election on whether a PUD will be established.
   “It’s an interesting process. The legislature set the role for us to give people an opportunity to gain information,” he said.
   Some of the issues raised by Portland General Electric included  the impact on local economy, a possible loss of tax base, elimination of private sector jobs, loss of charitable contributions, and public purpose funding. Opponents are also concerned that the establishment of a PUD sends an antibusiness message by replacing a private business entity with a government-controlled department, among other things.
   PUD supporters, on the other hand, state three major advantages to having a publicly owned utility district.
   According to the report, the price of electricity through BPA is less for PUDs; a nonprofit government entity of a PUD is less expensive to run than a corporation; and the absence of corporate income taxes to PUD customers are unavailable to corporations like PGE.
   PUD supporters also believe that a locally-owned utility district would have financial advantages over an investor-owned utility by being able to issue tax-exempt bonds to acquire resources through condemnation at book value, the report stated.
   A public hearing to discuss the boundaries of the proposed PUD will be held at 10 a.m. Oct. 30 at the Yamhill County Courthouse, 535 NE Fifth St. in McMinnville. Both oral and written testimony will be accepted.

From Oct. 11, 2003, Newberg Graphic
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