Property owners along the Pend Oreille River are encouraged to take precautions and prepare for possible flooding, including securing docks and boats. Peak river elevation for this year is expected to be sometime in late May or early June. “Unfortunately, we simply do not know exactly how high the river will rise or when peak flows will be reached”, said Terry Borden, the PUD’s Manager of Hydro Production at Box Canyon Dam. “When and how quickly the snowpack melts is determined solely by the weather”, he added.

Due to operational limitations, Box Canyon Dam is normally unable to produce electricity above 80,000 cubic feet per second (cfs). Power production at Box Canyon was shut down on April 29. As of May 1, river flow rates were between 78,000 and 81,000 cfs. The peak flow rate for 2011 was 126,000 cfs. During the flood year of 1997, the maximum flow rate was 140,000 cfs.

Jay Pickett has over 20 years of experience in energy, with a thorough understanding of the Western United States bulk power system, power distribution, power generation, and industry training. 

He has accumulated over 10 years of management experience in a utility setting including power generation operations and maintenance, marketing, resource leveling, and training in multiple energy technologies. His formal education began in the US Naval Nuclear Power Program. He has a BS degree from Southern Illinois University and a MBA from the University of Phoenix, as well as law enforcement training.

Mr. Pickett comes to us from being the Manager of Generation and System Operations at Centralia City Light. Prior to that, Jay was Seattle City Light’s Manager of the Boundary Dam and Lucky Peak projects. He and his wife, Ruth, are familiar with Pend Oreille County, especially the north end. They have six children and eight grandchildren. Favorite family activities include camping and quad riding, and Jay is an accomplished SCUBA diver. “Ruth and I are delighted to be able to return to Pend Oreille County”, he said. “I am very excited about this opportunity and look forward to the challenge.” He will begin work at the PUD on May 7^th.

The grant funds will be used for the replacement of approximately 13,000 feet of 65-year old water transmission lines and associated valves. The new transmission line will prevent system pressure loss and drinking water contamination due to leaking, low pressure gravity transmission lines.

The Metaline Falls Water System, which is the oldest and largest of Pend Oreille County PUD’s nine community water systems, has been a priority for improvement efforts for several years. In 2011, a $924,000 Community Development Block Grant was used to replace 5,800 feet of water main pipe, fire hydrants, construct a new pressure reducing station, and replace paving and sidewalks in the downtown area.

PUD linemen isolated the lines on Fourth St. in order to make repairs to the line on Union and restore power to the majority of affected customers. They then returned to Fourth Street and replaced the damaged section of line. Final repairs were made and power was restored to all customers by about 3:30 p.m.

Topics will include the Box Canyon Turbine/Generator Project Upgrade Update, Sullivan Creek Project Progress, Normandeau Fish Survival Study, Metaline Falls Water System Project, Northwest Open Access Network (NoaNet) Fiber Broadband Round 2 Update, and a Question/Answer Session. Light Refreshments will be served.

The Public Utility District No. 1 of Pend Oreille County (District) is participating in this endeavor to promote public access and recreation opportunities as another benefit of hydro power.  The District owns and operates the Box Canyon Hydroelectric Facility, which provides recreational and environmental stewardship on the river.

The District is currently supporting a project with the Pend Oreille River Water Trails by providing funding for signage along the highway and county roads and along the river boat launches that identify locations of launches along the Pend Oreille River.

The PUD’s fiber optic distribution system, which is currently under construction, is scheduled for final completion no later than March 31, 2013. Contract crews have been performing make-ready work on the PUD’s electric system and installing overhead fiber optic cable since last spring. Underground fiber optic installation is scheduled to begin in April. Contract crews will install fiber optic cable throughout the service area (approximately from Dalkena south to the county border).

Community Network System Manager, Joe Onley, and the PUD’s Director of Finance, John Jordan reviewed the process used for developing the financial models and projections used to determine prices for broadband fees. They reminded the audience that in accordance with Washington State law, the PUD has authority to provide wholesale broadband services. Retail services to private homes and business will be provided by retail service providers.

Mr. Onley explained the District will be seeking home and business owner permission to bring fiber onto their property to a box to be located near the electric meter; there will be no obligation to actually take the service. Those served by overhead electric lines will be served by overhead fiber optic lines, fiber will be placed underground to those premises with underground power service. People who actually wish to take the service should contact the District to be placed on a list, which the District will later release to all authorized RSPs who will then contact you and compete for your business based on their individual service terms and conditions. RSPs will also be directly marketing their services at a later date. The District anticipates the first customer services will be enabled around fall of this year.

Rates proposed for private customers included an introductory rate of $35.00 per month (effective until December 31, 2013), and a standard rate of $50.00 per month. Mr. Jordan explained that the rates were developed using a forecast that projected 1,500 to 2,000 customers within 8 years. “These rates are for the RSPs, who will be our customers”, he stated. “We have no control over what they charge customers”, he added.

Questions regarding the rate structure, rollout strategies and schedules, and possible services to be offered were asked and discussed. PUD staff and commissioners responded by assuring those in attendance that their comments and concerns are understood and will be considered in the decision-making process. Mr. Onley explained that 37 areas of service have been identified and that schedules for hook-up have not been determined. “It may be that if we know the majority of customers in a particular area want broadband service that those areas will be given priority in the hook-up schedule”, he stated. 

Following the discussion period, the commissioners thanked everyone for attending and closed the hearing. The commissioners decided to further consider the testimony received and resultantly postponed action on the broadband fees until the April 10, 2012 meeting.

Pend Oreille PUD has been involved in proposed state legislation to give PUD’s authority to provide retail telecommunication services. Currently PUD’s have authority to provide only wholesale telecom services.

The core business of Pend Oreille PUD is generating and distributing electricity to our customers at the lowest possible cost with the highest possible reliability. I believe my job as a Commissioner is to make certain that always remains the first priority. 

For years utilities have used their own fiber optic systems to make electricity more reliable. It is a business we know and do well. For more than a decade, our PUD’s excess capacity and wholesale authority have provided greater bandwidth at lower cost to local government, schools, libraries, hospitals, doctors, businesses and cell towers.

In 2010 we chose to accept a large federal grant to extend fiber optic cable everywhere our electric lines go in the southern part of Pend Oreille County. Just like electricity a century ago, broadband access is now becoming an essential service people do not want to live without. It increases educational opportunities, economic vitality, property values, and jobs. Our rural county will leap forward in this information age with state-of-the-art infrastructure. Without this gift, such progress is otherwise impossible.

This project is a huge undertaking for a small utility and there is substantial risk. The PUD is totally dependent upon retail and internet service providers to offer services people need at markups they can afford. Some RSPs are enthusiastically marketing what is coming, while others are not. We believe having retail authority would help us protect the enormous investment being made. 

Having the authority does not necessarily mean using that authority. We want local providers to be successful. We do not want to put anyone out of business. We will not compete unfairly. But we must ensure that this new PUD system pays its own way and does not raise electric rates. Having retail authority would give us an option if other providers fail, and help us bring service to the northern part of the county sooner, if others do not. 

The state PUD Association was not seeking retail telecom authority in the 2011 state legislative session. PUDs around the state have mixed opinions about the issue, just as they have varied business models for their wholesale telecom systems. Representative John McCoy of Tulalip, however, believes PUDs are part of the solution to providing broadband access to unserved and underserved areas around the state where private companies seem to have little interest.

McCoy chairs the State House Technology, Energy and Telecommunications committee, where many issues affecting PUDs are decided. In January 2011 he asked us to testify about his proposed legislation. PUD Finance Director John Jordan explained how we might use retail authority to better serve our citizens. He was also candid with the committee about conditions in the bill we will not accept, such as unneeded regulation by the Washington Utilities and Transportation Commission. 

Legislation is sometimes described as “sausage making.” This bill is a great example of the wildly divergent pros and cons that get thrown around in the process. Ultimately, McCoy’s bill did not make it out of committee this session.

We knew it would be difficult to get a bill we could fully support through the 2011 legislative session. Legislators involved in this process, however, now have a better idea what public utility district customers need, and we will continue to work the issue. Meanwhile, we hope to build win-win relationships with all of our retail service providers, to make retail authority unnecessary for Pend Oreille PUD.

(Dan Peterson is President of the Pend Oreille PUD Commission and chairs the Washington PUD Association’s Government Relations Committee. He can be reached at dpeterson@popud.org.)