(PDX Mayor) Potter endorses city-sponsored purchase of PGE

[0rganism]

I'm looking forward to more of this kind of thing from The Amazing Mr. Potter. Texas Pacific needs to get its ass kicked hard on this one; our resources and utilities been exploited by out-of-state profiteers for far too long. Portland, of all places, should have a public electrical utility company.

Potter endorses city-sponsored purchase of PGE

Wendy Culverwell

Portland Mayor Tom Potter endorsed a city-led purchase of Portland General Electric Monday morning, telling a room full of reporters, politicians and business leaders he "enthusiastically" supports turning Oregon's largest utility into a public agency.

The mayor, who was joined by a number of suburban city leaders, specifically endorsed a plan drafted by Portland City Commissioner Erik Sten to match the $2.35 billion purchase price by issuing municipal revenue bonds that would be repaid by ratepayers.

The city says that its low-cost access to capital and tax-free status will shave 10 percent from utility rates, a point hotly contested by the buyout firm seeking regulatory approval to purchase PGE, Texas Pacific Group and its local arm, Oregon Electric Public Utility.

Texas Pacific's bid for PGE rests in the hands of the three-member Oregon Public Utility Commission, which is expected to decide on the deal sometime in February. The utility commission may approve the Texas Pacific sale, reject it, or attach conditions that Texas Pacific could then choose to accept or reject.

Under Sten's plan, the utility would be managed by a professional board nominated by some of the same people now opposing the Texas Pacific sale. The board would be appointed by the Portland City Council. Sten said he would pursue a deal with PGE's current owners, creditors of the bankrupt Enron Corp., if the Texas Pacific deal fails. Neither Potter nor Sten would say if the city would appeal the PUC's decision if it is favorable to Texas Pacific.

Noting that Gov. Ted Kulongoski has not weighed in on the Texas Pacific/PGE debate, Potter said he would love for the governor to endorse the city effort.

What would the governor say?

"Gosh, that's a great idea," Potter suggested.

[stevedeshazer]

1. Looks good

Potter is firing right out of the box, I really like that.

I've been opposed to all the PGE crap since they sited a nuclear plant in my home county in 1970. It's been one scandal after another ever since.

Potter is looking like an aggressive-progressive mayor, and we sure need that right now. Give me more of that.

[depakid]

2. I'm worried about our gutless PUC

They have an astonishingly bad track record when it comes to protecting ratepayers lately.

However, it seems as if the tide is truning, with the disclosure of the "Project Tahoe" papers- that indicated Texas Pacific was sure to screw us to the tune of about $1 billion dollars. Even the PUC (and Ted K) will have a hard time ignoring that in light of public opinion.

In addition to a city buyout, some new alternatives have been cropping up:

"Based on the attention paid to Mayor Tom Potter's press conference on Monday, you might think the future of Portland General Electric lies either in Texas or City Hall. In truth, however, there are other options now being discussed for the fate of Oregon's largest utility, including a bid involving one of the state's most experienced utility executives.

One group is led by Jim Hansen, a Lake Oswego investor. Hansen has brainstormed with a group that includes former PacifiCorp CEO Fred Buckman. Their approach, a customer-owned co-op Hansen is calling "Oregon Mutual Utility," offers an alternative model that includes features of public and private ownership. The co-op proposal would retain local control through the customer ownership and pay all federal, state and local income taxes—unlike a public purchase, which would pay state and local but not federal taxes. Like the government-owned model advocated by the City of Portland and its allies, Hansen's co-op would be eligible for preferential pricing from the Bonneville Power Administration, the federal power-marketing agency.

Another option for PGE that is gaining traction with some business leaders is an alternative already on the table: the spinoff of PGE to Enron's creditors. Matt Chapman, the CEO of the Portland software company Centrisoft, argues such a spinoff would return PGE to its pre-Enron condition as a locally managed, publicly owned company.

Another possibility that has surfaced since the Legislature convened is state, rather than municipal, ownership of PGE. That option sprung out of hearings on the utility's future held by state Sen. Rick Metsger's Business and Economic Development Committee."

http://www.wweek.com/story.php?story=5958