Utility customers fear proposed sale

Puget Energy customers aired heartfelt concerns about the fate of the state's largest utility at a public meeting with Washington Utilities and Transportation commissioners Thursday evening.

The meeting, held in a packed room at Bellevue Community College, kicked off the commission's effort to collect public comment on a $7.4 billion deal that would put the state's largest utility in the hands of a consortium of Australian and Canadian investors. Customers also discussed proposed increases to electric and natural-gas rates, which the commission is considering as a separate case. Puget Sound Energy is a unit of Puget Energy.

Many speakers worried that a takeover by foreign investors, which Puget Energy says is necessary to raise capital for new investments, could instead lessen the region's energy independence, and result in higher rates in the future.

"I oppose the sale," said Linda Boyd of Clyde Hill. Consenting to a purchase to raise capital "is like selling the house to get a new garage door."

Ron Owen of Kingston said the lead investor, Australian investment bank Macquarie, was taking on large amounts of debt to finance the acquisition, which would add pressure to increase rates.

The fact that Puget Energy, currently a public company traded on Wall Street, would go behind the veil of a private corporation irked Todd Boyle of Kirkland. "There really isn't a role for a private firm to be getting dividends or interest out of our rates," he said.

Not all voices were against the proposed merger. Richard Cole of Redmond, who said he has owned Puget Energy shares for 30 years, testified in favor of the acquisition. Puget Energy's "ability to raise capital has been restricted" by rocky markets, he said.

Customers also discussed Puget Energy's request to increase electric rates by an average of 12 percent for electric-residential customers and 6 percent for residential gas users. Frank Griffin testified on behalf of Seattle Public Schools, said the rates would "significantly impact" the school system.

Puget Energy spokeswoman Martha Monfried said the company understands concerns about ownership, but that the commissioners made clear that the WUTC will continue to regulate the utility's operations in the best interest of customers.

The Bellevue meeting was the first of three held by the WUTC. The next two will be held in Bellingham on May 20 and in Olympia on June 4. Citizens also can submit comment electronically or by mail until July 31 about the takeover case and until August 29 about the rate case. An informational session with representatives of Puget Energy, the Attorney General's Public Counsel office and the commissioners will be held in Woodinville on May 28.

The merger still has to get a nod from several federal agencies, but the WUTC has the last word on the deal. A decision is expected this fall.

Ángel González: 206-515-5644

or agonzalez@seattletimes.com