Co-op stalls vote on power proposal

A clearly divided Flathead Electric Cooperative board of trustees on Friday tabled a proposal to join a Portland-based power cooperative.

The delay will allow time for input from co-op members.

A plan to join the Pacific Northwest Generating Cooperative known as PNGC Power — a cooperative of 16 other Northwest electric distribution utilities in a seven-state region — had emerged as one of Flathead Electric’s top options for finding new sources of low-cost power.

But in recent weeks, several trustees have publicly voiced concerns about the lack of weigh-in from co-op members on an issue this big.

Some trustees maintain Flathead Electric’s bylaws call for a membership vote on the PNGC Power decision. Others, including board president George Taylor, say members in their districts elected them to make such difficult decisions.

District 8 Trustee Paul Holland asked to add an amendment to the main motion, requiring a membership vote on joining PNGC Power, but Taylor said it was inappropriate and ruled it out of order.

Exactly how the membership will be brought into the PNGC Power discussion hasn’t been determined. Public forums may be set up or the trustees may send out a “white paper” explaining top options for finding new power sources.

Co-op trustees have been exploring several options to meet members’ power needs after Bonneville Power Administration in October 2011 caps the amount of low-cost power it provides to Flathead Electric.

In late 2008, the board signed a contract with BPA to provide its capped power allocation through 2028, then began looking at other alternatives to meet the cooperative’s current projected growth rate of two to three additional megawatts annually.

The board was under an April 7 deadline to join PNGC, but several trustees said they believe there will be other opportunities down the road to join. Trustees, however, must decide by September 2011 whether the co-op will have BPA buy incremental power for the five years beyond its three-year commitment.

The potential loss of local control by joining the regional utility group was a major sticking point among the trustees.

“I don’t want to be robbed of local control,” District 3 trustee Jay Downen said, adding that he believes it will be difficult for Flathead Electric to extract itself from the larger cooperative if it wanted to later on.

“I’d never vote for it unless the members OK it,” Downen said.

District 6 trustee Duane Braaten said there’s a certain amount of risk with any contract, but he believes the power-pooling aspect of the regional group would serve Flathead Electric well. As for retaining its BPA allocation, Braaten said he’s “fairly comfortable that it is ours and we can get it back.”

District 2 trustee Emery Smith was among those concerned that PNGC wants Flathead Electric to turn over its BPA allocation when it joins. He maintained there’s still time to continue looking at options.

PNGC Power members assign their BPA power supply contracts to the cooperative, but member co-ops retain all the statutory rights they have as individual utilities, according to Flathead Electric General Manager Ken Sugden. There is no transfer of assets and member cooperatives do not contribute BPA hydropower to PNGC, he said.

If Flathead Electric joins the larger cooperative, it would retain its BPA preference rights as a member of PNGC and would retain those rights even if it later left PNGC, Sugden said.

Taylor, a retired attorney, said he read the proposed contract and still has questions.

“I don’t think the contract protects us to the extent it should,” he said. “It’s not clear to me this contract will serve the best interest of our members ... I think the membership wants us to get a clear picture that this is a good deal. This board has the moxie, strength and character to make the right decision and we have plenty of time to make the right decision.”

Taylor acknowledged there’s been “a lot of raw and angry rhetoric out there,” and said he regrets the ill will that’s erupted over the issue.

Several co-op members attended Friday’s meeting and implored the board to allow for more member participation before deciding on future power ventures.

Bill Myers of Bigfork said he was disappointed that public participation at last week’s annual meeting was cut short.

“We need to educate the co-op membership and kick around more ideas,” Myers said. “One thing is critical: With this big of a decision the members need to have a voice.”

P. David Myerowitz of Columbia Falls agreed, saying it is “presumptuous if not arrogant to think the public” isn’t capable of making such a decision.

 Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com