Columbia Co. Ponders Switch to REA

DAYTON - On Friday, representatives of Pacific Power and Columbia REA made brief presentations and answered questions from the Columbia County Commissioners in response to a request for information issued by the county earlier this year. The county is considering whether cost savings could be achieved by changing power providers at its two main facilities, the Columbia County Courthouse and the Columbia County Public Works Building.

The two facilities have always been served by Pacific Power. However, Columbia REA installed an underground power line in 2011 to serve its office in downtown Dayton. That line runs adjacent to both county facilities, and REA approached the county earlier this year about making the switch.

An analysis prepared by county Public Works Director Drew Woods and presented to the commissioners showed that if power usage at the Columbia County Courthouse had been billed at Columbia REA's rates from 2010 through 2014, the county would have saved more than $21,500, or an average of about $350 per month. That shows a potential cost savings of approximately 19 percent.

In the RFI, the county asked the two firms to estimate current and future costs to the county for electric power, including current rates, pending or proposed rate increases, costs for new connections to the facilities and costs for decommissioning existing connections.

The RFI also stated that the county wishes to enter into a long-term contract with its power provider going forward.

In his presentation, Bill Clemens, regional community manager for Pacific Power, said that he had "strong concerns" with the RFI and the approach that the county is taking. "The primary goal of the County's RFI appears to be to obtain a preferential contract for electrical service," he said. "To deviate from our current service to the county would be considered by the Washington Utilities and Transportation Commission as discriminatory.

"Pacific Power's rates and terms of service are approved by the Commission subject to a rigorous public process," he added. "In essence, Pacific Power cannot choose its customers and does not give preferential treatment to some customers at the expense of other customers."

Regarding the longterm contract the county is requesting, Clemens said that it was not realistic to expect Pacific Power to enter into a contract with the county, since its rates are approved by the state commission and apply to all of its customers. He also noted that Columbia REA is not subject to the same regulatory restrictions, and is not prohibited from providing preferential rates to some customers.

In his presentation, Clemens did not provide a cost to the county for decommissioning its connection equipment. In a phone interview with The Times, Clemens said that there would be a cost for removing equipment if the county chose to swich providers, but the amount is unknown at this point.

Columbia REA's manager of marketing and member services, Scott Peters, told the commissioners that his company would also offer the same power rate to the County that it offers other commercial customers in the same rate class. He also stated that REA has never entered into long-term contracts with commercial customers.

Peters also pointed out that the county would incur no costs for establishing new connections to Columbia REA's power line for the two facilities.

Regarding future costs to the county, REA's submittal states: "Electric Rates are going up for everyone; the question is who will do a better job of controlling their rates.

The document included a comparison showing that Pacific Power's rates have increased 39.7% since 2007, while REA's have increased 29.5% during the same period.

Peters said that Columbia REA's board of directors has authorized a 4.9% rate increase, which will take effect in January. Pacific Power has requested a rate increase to take effect in March 2015, but the amount has not been set.

Both Clemens and Peters listed their respective firms' strong involvement in the community. Both have employees heavily involved in community activities and have been strong supporters of community organizations and events.

Both companies also pay large sums in property taxes to the county. Peters said that Columbia REA has paid more than $412,000 in property taxes in the past five years. According to Clemens, Pacific Power is by far the largest property tax payer in the county. Pacific Power's submittal said that the county has received "on average more than $1.8 million in property tax revenues annually over the past few years" from Pacific Power. That includes taxes on its Marengo wind energy facilities in the county.

According to Clemens, Pacific Power has provided electrical service in Columbia County for 104 years. Columbia REA was created as a coop in the 1930s to extend electrical service to farmers in sparsely populated areas, Peters said.