{"id":99,"date":"2019-12-12T02:08:58","date_gmt":"2019-12-12T02:08:58","guid":{"rendered":"http:\/\/powertothepublic.org\/?page_id=99"},"modified":"2020-03-03T21:07:52","modified_gmt":"2020-03-03T21:07:52","slug":"faqs-of-east-king-county-fight","status":"publish","type":"page","link":"https:\/\/powertothepublic.org\/index.php\/faqs-of-east-king-county-fight\/","title":{"rendered":"FAQ&#8217;s of East King County fight!"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"502\" height=\"248\" data-attachment-id=\"138\" data-permalink=\"https:\/\/powertothepublic.org\/index.php\/faqs-of-east-king-county-fight\/ekc-pud-service-area_sm\/\" data-orig-file=\"https:\/\/i0.wp.com\/powertothepublic.org\/wp-content\/uploads\/2020\/01\/EKC-PUD-service-area_sm.jpg?fit=502%2C248&amp;ssl=1\" data-orig-size=\"502,248\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"EKC-PUD-service-area_sm\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/powertothepublic.org\/wp-content\/uploads\/2020\/01\/EKC-PUD-service-area_sm.jpg?fit=502%2C248&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/powertothepublic.org\/wp-content\/uploads\/2020\/01\/EKC-PUD-service-area_sm.jpg?resize=502%2C248\" alt=\"\" class=\"wp-image-138\" srcset=\"https:\/\/i0.wp.com\/powertothepublic.org\/wp-content\/uploads\/2020\/01\/EKC-PUD-service-area_sm.jpg?w=502&amp;ssl=1 502w, https:\/\/i0.wp.com\/powertothepublic.org\/wp-content\/uploads\/2020\/01\/EKC-PUD-service-area_sm.jpg?resize=300%2C148&amp;ssl=1 300w\" sizes=\"auto, (max-width: 502px) 100vw, 502px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">FREQUENTLY ASKED QUESTIONS<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.ekc-pud.org\/what_is_pse\">What&#8217;s Puget Sound Energy?&nbsp;<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/why_do_we_want_them_to_go_away\">Why do we want them to go away?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/what_is_a_public_utility_district\">What&#8217;s a Public Utility District<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/are_puds_a_washington_state_thing\">Are PUDs a Washington State thing?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/that_sounds_great_how_do_we_get_one\">That sounds great! How do we get one?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/why_not_form_a_pud_for_all_of_king_county\">Why not form a PUD for all of King County?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/wait_were_disconnecting_from_pse_where_will_we_get_our_electricity\">Wait, we&#8217;re *disconnecting* from PSE?&nbsp; Where will we get our electricity?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/if_puds_are_so_great_why_aren_t_there_more_of_them\">If PUDs are so great, why aren&#8217;t there more of them?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/no_really_why_aren_t_there_more_of_them\">No, really, why aren&#8217;t there more of them?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/isn_t_it_kind_of_unfair_to_just_take_stuff_away_from_a_company_like_pse\">Isn&#8217;t it kind of unfair to just take stuff away from a company like PSE?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/what_would_happen_to_pse_s_employees\">What would happen to PSE&#8217;s employees in the Eastside?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/why_does_pse_have_so_many_outages\">Why does PSE have so many outages?<\/a><\/li><li><a href=\"https:\/\/www.ekc-pud.org\/oh_no_this_is_a_government_takeover_of_electricity\">Oh no, this is a GOVERNMENT takeover of ELECTRICITY<\/a><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/what_is_pse\">WHAT&#8217;S PUGET SOUND ENERGY?&nbsp;<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>PSE is the electrical utility that serves almost all of East King County.&nbsp;&nbsp;<a href=\"https:\/\/www.ekc-pud.org\/pse_history\" target=\"_blank\" rel=\"noreferrer noopener\">It used to be publicly traded<\/a>, but it was bought out by private equity funds in 2008.&nbsp;&nbsp;PSE&#8217;s board of directors is selected by the private equities that own it.&nbsp;&nbsp;Because it&#8217;s a privately owned monopoly, it&#8217;s regulated by the Washington Utilities and Transportation Commission, which determines how much profit PSE is allowed to make&#8211;usually around a 9-10% return on equity every year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/why_do_we_want_them_to_go_away\">WHY DO WE WANT THEM TO GO AWAY?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>PSE is locked into gas:<\/strong>&nbsp;starting in the late 90s, PSE&nbsp;<a href=\"https:\/\/www.ekc-pud.org\/pse_history\" target=\"_blank\" rel=\"noreferrer noopener\">began investing heavily<\/a>&nbsp;in natural gas infrastructure&#8211;distribution, generation, and storage. &nbsp;This year, Washington passed CETA. Now, PSE wants us to pay for that white elephant gas infrastructure, and buy renewable generation facilities, and provide it a tidy profit as a reward for making all those terrible decisions.<\/li><li><strong>PSE is letting the electrical grid degrade:<\/strong>&nbsp;They&#8217;re owned by private equity, and private equity&#8217;s business model is to slowly strip mine the companies it buys until they finally collapse. PSE&#8217;s service reliability is&nbsp;<a href=\"https:\/\/www.ekc-pud.org\/pse_poor_reliability\" target=\"_blank\" rel=\"noreferrer noopener\">in the bottom third<\/a>&nbsp;of US utilities and getting worse, because it underspends on infrastructure to pad its bottom line.<\/li><li><strong>PSE is unaccountable:<\/strong>&nbsp;The private equities that own PSE are in the Netherlands, Canada, and (formerly) Australia. PSE&#8217;s management answers to them. The only direct input the public gets is in hearings. &nbsp;PUDs have locally elected boards and&nbsp;<a href=\"https:\/\/www.ekc-pud.org\/accountability\" target=\"_blank\" rel=\"noreferrer noopener\">are accountable to their residents.<\/a><\/li><li><strong>PSE is expensive:<\/strong>&nbsp;Trying to keep prices in line with nearby public utilities like Snohomish PUD, Chelan PUD, and Seattle City Light is hard when you&#8217;re PSE and you made a bunch of shortsighted investment decisions and have to send 10% of your revenue to your owners.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/what_is_a_public_utility_district\">WHAT&#8217;S A PUBLIC UTILITY DISTRICT<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>A PUD is an electrical utility that&#8217;s owned by the residents it serves.&nbsp;A PUD&#8217;s commissioners (its board of directors) are directly elected by the voters that live in the district.&nbsp;<br><br>They&#8217;re generally cleaner, cheaper, and more reliable than investor-owned utilities because they:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>don&#8217;t have to divert revenue to investors as profits<\/li><li>have a lighter regulatory burden because they&#8217;re directly accountable to the people they serve<\/li><li>are eligible to purchase power from other publicly-funded generators like the&nbsp;<a href=\"https:\/\/www.bpa.gov\/\">Bonneville Power Administration<\/a><\/li><li>can construct and operate their own generation facilities<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/are_puds_a_washington_state_thing\">ARE PUDS A WASHINGTON STATE THING?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>Sort of. There are municipal utilities and cooperative utilities&nbsp;<a href=\"https:\/\/www.publicpower.org\/our-members\">all around the country<\/a>, but there are a lot of them in Washington.&nbsp;Washington&#8217;s PUD law is unusually strong. It was created by Initiative 1, all the way back in 1930.<\/p>\n\n\n\n<p>The Washington Public Utility Districts Association has a good explainer&nbsp;<a href=\"https:\/\/www.wpuda.org\/history\">here.<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/that_sounds_great_how_do_we_get_one\">THAT SOUNDS GREAT! HOW DO WE GET ONE?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>We have to get 35,000 signatures on&nbsp;<a href=\"https:\/\/www.ekc-pud.org\/petition\">this petition<\/a>&nbsp;from people who reside in the proposed district, and then the question of whether to form a PUD will be on the 2020 general election ballot for the following voting precincts.&nbsp;&nbsp;If a majority votes yes, we have a PUD.<\/p>\n\n\n\n<p>Appearing on that same ballot will be candidates for PUD commissioner.&nbsp;&nbsp;Every voter will vote for three commissioners&#8211;one for their district, and two at large positions.&nbsp;&nbsp;There are a total of five commissioners for districts the size of ours.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/why_not_form_a_pud_for_all_of_king_county\">WHY NOT FORM A PUD FOR ALL OF KING COUNTY?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>One reason is that we don&#8217;t want to bite off more than we can chew.&nbsp;When public utilities get too big, they can start to act like investor-owned utilities. All of King County outside Seattle City Light&#8217;s service area is about 1.4 million people. Serving that many people would be one of the 10 largest public utilities in the United States. Instead, we&#8217;re trying to keep the district to a manageable size&#8211;about 550,000 people live in the area covered by the PUD.&nbsp;That will make our PUD the third largest public utility in Washington State, after Seattle City Light and Snohomish County PUD. We&#8217;ll be big enough to get things done, but small enough the public can exercise control.<\/p>\n\n\n\n<p>Another reason is that Seattle and its immediate suburbs are served&nbsp;<a href=\"https:\/\/www.seattle.gov\/light\/history\/default.asp\">Seattle City Light<\/a>, a municipal utility. &nbsp;PUDs don&#8217;t replace municipal utilities. &nbsp;Some of the Eastside PUD&#8217;s area is served by&nbsp;<a href=\"https:\/\/www.tannerelectric.coop\/content\/about-tanner\">Tanner Electric Cooperative<\/a>, and the PUD would not replace Tanner or take any of Tanner&#8217;s customers. &nbsp;We&#8217;re just replacing PSE.<\/p>\n\n\n\n<p>The biggest reason is geography.&nbsp;&nbsp;Lake Washington and the Issaquah Alps are formidable geographic barriers.&nbsp;&nbsp;The electrical grid in East King County only contacts the rest of PSE&#8217;s service area at three places: the Renton\/Newcastle border, the base of Squak Mountain, and Snoqualmie pass.&nbsp;&nbsp;When a public utility forms, disconnecting from the incumbent utility can be a technically daunting process if a lot of circuits cross its border.&nbsp;&nbsp;Boulder Colorado has been&nbsp;<a href=\"https:\/\/www.utilitydive.com\/news\/xcel-boulder-agree-on-separation-details-in-march-towards-municipal-utilit\/541323\/\">working on it for 10 years<\/a>, as it is surrounded by XCel territory and has&nbsp;<a href=\"https:\/\/www.google.com\/maps\/place\/Boulder,+CO,+USA\/@40.0292888,-105.3100174,12z\/data=!3m1!4b1!4m5!3m4!1s0x876b8d4e278dafd3:0xc8393b7ca01b8058!8m2!3d40.0149856!4d-105.2705456\">municipal borders<\/a>&nbsp;that look like a&nbsp;<a href=\"https:\/\/media.wired.com\/photos\/592738e6ac01987bf0138dbf\/master\/w_1753,c_limit\/Texas02.jpg\">gerrymandered congressional district<\/a>.&nbsp;&nbsp;With the boundaries we&#8217;ve drawn, disconnection will be easy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/wait_were_disconnecting_from_pse_where_will_we_get_our_electricity\">WAIT, WE&#8217;RE *DISCONNECTING* FROM PSE?&nbsp; WHERE WILL WE GET OUR ELECTRICITY?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>We can get it from the same place PSE does: contract with other utilities to purchase power they generate and purchase power on the wholesale market.&nbsp;As of 2018, PSE only generates 45% of the power it sells.&nbsp;The remaining 55% it buys from elsewhere. The Eastside has less than 25% of PSE&#8217;s customers, so there&#8217;s plenty of available electricity.&nbsp;With the Eastside out of their service area,&nbsp;PSE won&#8217;t be needing it.&nbsp;<\/p>\n\n\n\n<p>PUDs can also (with a popular vote) issue bonds and construct generation facilities.&nbsp;With the Eastside&#8217;s resources and without PSE&#8217;s fossil fuel debts, we can get that done a lot faster than they could.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/if_puds_are_so_great_why_aren_t_there_more_of_them\">IF PUDS ARE SO GREAT, WHY AREN&#8217;T THERE MORE OF THEM?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>There are a lot of them in Washington state.&nbsp;&nbsp;PUDs often formed in rural counties where it wasn&#8217;t profitable to provide electrical service.&nbsp; Rural areas&nbsp;require more wire and poles to serve each customer, and the higher costs eat into profits to the point it&#8217;s not profitable to offer service.&nbsp;&nbsp;PUDs don&#8217;t require profit, so they have been able to provide the service investors can&#8217;t and won&#8217;t.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Suburbs are ideal customers for utilities: customers are dense enough that you don&#8217;t need as much infrastructure to serve them, but still spread out enough that rights-of-way and land for poles, towers, and substations are inexpensive and easy to come by.<\/p>\n\n\n\n<p>So suburbs wind up paying roughly the same rates as rural areas, but where there would otherwise be savings to customers there are profits flowing to investors.&nbsp;&nbsp;In Washington, however, PSE customers pay some of the highest rates in the state.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/no_really_why_aren_t_there_more_of_them\">NO, REALLY, WHY AREN&#8217;T THERE MORE OF THEM?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>There would be, but every time there&#8217;s a PUD effort in areas with a lot of lucrative customers PSE responds with a professional PR firm led anti-PUD campaign and a whole lot of money.&nbsp;&nbsp;It dropped half a million dollars to defeat a PUD electrification effort in Thurston County in 2012. It defeated a PUD electrification effort on Whidbey Island in 2008.&nbsp;&nbsp;The most recent successful PUD electrification effort was in Jefferson county in 2008, but Jefferson county is only 29,000 people.<\/p>\n\n\n\n<p>A company that can pay 5 executives a combined total of $16,000,000 a year can afford to&nbsp;<a href=\"https:\/\/www.sightline.org\/2018\/04\/25\/how-the-fracked-gas-industry-plays-politics-in-washington\/\">drop a million here and there<\/a>&nbsp;to fund&nbsp;<a href=\"https:\/\/www.pdc.wa.gov\/reports\/contributions_download?filer_id=ALLIPT%20507&amp;election_year=2012\" target=\"_blank\" rel=\"noreferrer noopener\">astroturf campaigns<\/a>&nbsp;that con people out of voting for a PUD.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/isn_t_it_kind_of_unfair_to_just_take_stuff_away_from_a_company_like_pse\">ISN&#8217;T IT KIND OF UNFAIR TO JUST TAKE STUFF AWAY FROM A COMPANY LIKE PSE?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>We&#8217;re not just&nbsp;<em>taking<\/em>&nbsp;anything.&nbsp;&nbsp;Once we form a PUD, the new PUD either negotiates a purchase price for all the electrical infrastructure in the district, and if we can&#8217;t agree on a price we can fight it out in court.&nbsp;&nbsp;Negotiated prices tend to be 150% of book value or more, so we should plan on a court fight.&nbsp;&nbsp;There are things about the Eastside that make us much better able to win that fight than small counties like Jefferson.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/what_would_happen_to_pse_s_employees\">WHAT WOULD HAPPEN TO PSE&#8217;S EMPLOYEES IN THE EASTSIDE?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>They won&#8217;t wind up unemployed, that&#8217;s for sure. The same amount of work would need to be done on the Eastside&#8217;s electrical grid. More, in fact. PSE hasn&#8217;t done a good job maintaining our grid. The PUD would need to hire people to do this. Some people would no doubt come from PSE, and we&#8217;ll see a net addition of jobs to the region.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/why_does_pse_have_so_many_outages\">WHY DOES PSE HAVE SO MANY OUTAGES?<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>The UTC makes PSE keep prices in the roughly the same ballpark as public utilities like Snohomish County PUD, but PSE has the disadvantage of having to give 10% of your revenue to the people that own them and their debts.&nbsp;&nbsp;<a href=\"https:\/\/www.ekc-pud.org\/pse_poor_reliability\">So PSE cuts corners by relying on fossil fuels, understaffing, outsourcing, and not doing the kind of reliability upgrades that they should.<\/a>&nbsp;&nbsp;The gas explosion in Greenwood is a good example of this.&nbsp;&nbsp;As long as regulators and lawsuits don&#8217;t penalize them financially more than they save by cutting corners, they can let the lights go out a lot on their customers and\/or blow them up.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.ekc-pud.org\/oh_no_this_is_a_government_takeover_of_electricity\">OH NO, THIS IS A GOVERNMENT TAKEOVER OF ELECTRICITY<\/a><\/h3>\n\n\n\n<p>A:<\/p>\n\n\n\n<p>Forming a PUD doesn&#8217;t mean your city council (or the King County council) is suddenly in charge of the electrical grid. A PUD is a nonprofit utility, and has commissioners just like PSE has a board of directors.<br><br>The good thing is that the PUD&#8217;s residents&nbsp;<a href=\"https:\/\/www.ekc-pud.org\/accountability\" target=\"_blank\" rel=\"noreferrer noopener\">select the commissioners<\/a>, instead of fund managers in Sydney, Amsterdam, or Toronto selecting the commissioners.<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>FREQUENTLY ASKED QUESTIONS What&#8217;s Puget Sound Energy?&nbsp; Why do we want them to go away? What&#8217;s a Public Utility District Are PUDs a Washington State thing? That sounds great! How do we get one? Why <a class=\"mh-excerpt-more\" href=\"https:\/\/powertothepublic.org\/index.php\/faqs-of-east-king-county-fight\/\" title=\"FAQ&#8217;s of East King County fight!\">[&#8230;]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-99","page","type-page","status-publish"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FAQ&#039;s of East King County fight! - Power to the PUBLIC!<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/powertothepublic.org\/index.php\/faqs-of-east-king-county-fight\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FAQ&#039;s of East King County fight! - Power to the PUBLIC!\" \/>\n<meta property=\"og:description\" content=\"FREQUENTLY ASKED QUESTIONS What&#8217;s Puget Sound Energy?&nbsp; Why do we want them to go away? 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