It makes the most sense that PGE be owned by the city. That is the only way we can have the open books to follow the money.

When Enron was under investigation, they hid their books declaring it private. When Cheney had his summit he declared the meetings were private. Frankly, I find it disturbing that a public official can keep private any interaction he has had as an official, particularly when it is related to something as pervasive as energy policy that effects all of us.

When Enron collapsed, we had to go through the courts before anyone was charged, and they all remained at work. In a public entity, the court of public opinion can result in the removal of unethical individuals without having to face a judge, and I would grant that sometimes this may be in error. But at least we have the opportunity to do this, whereas in a private company we have no voice.

Portland is best suited for ownership and management of this monopoly. I wholeheartedly believe that private enterprise can run it more efficiently, but that economy only goes to the shareholders and not the consumers. {or did we get a trickle?} Let the consumers be the shareholders.

I think we need to have a non-Portland entity running this. If it is the state, then OK, I guess.

I'll ignore their total incompetence on the Water Bureau only mentioning the computer is still not working right and we have the highest water rates around.

I think CoP would just take and use electricity as another taxing vehicle. No one mentions that only 1/3 of PGE customers are in Portland, however they could get the benefit of taxes from those other 2/3rds. Just like CoP charges Portland one rate for BullRun water and everyone else more.

My fear is that they will target certain areas they want to develop with lower rates just like they do with property taxes, so when Gerdling/Edlen need a 50% lower power rate for one of their developments they will roll over like they usually do to give it to them.

Don't laugh they do it with Prop Tax abatements.

Steve- It sounds like we need a head to roll at the Water Dept.? If the man in charge ain't getting it done, the court of public opinion is always open. It is only our silence that allows these siphons to remain.

This story was first broken, BTW, on Monday's Thom Hartmann Show, where Ted, one of their guests, said as much.

Excellent point, Kari...why does this keep getting lost in the debate about the City's potential takeover of PGE? It's time to get over the water bureau debacle and recognize the Commissioners aren't a bunch of idiots. They've learned some lessons from it and I believe will proceed with a modicum of restraint (i.e. I don't expect them to extend taxing authority on this, Steve...)

OK fine, then have CoP make two iron-clad promises if they run it: 1) Everyone PGE distributes power to will pay the same $/kWh 2) No new taxes to any PGE consumer since any tax would be very regressive. In addition, the majority of people affected by a tax would be outside of Portland.

As far as getting over the Water Bureau, you speak in the past tense - the computer is still not working after 4+ years, so we don't know if any of them can run a large scale distribution network (which is what PGE is.) Unless, they have any actual experience in running a business efficiently.

Also, as far as a PUD, realize they will be paying BPA the same new rate as everyone else, not what Tillamook PUD pays. Even Tillamook may lose their breaks if BPA goes to flat pricing.

"The existing systems will remain in place. The existing management will remain in place. Just the ownership is changing."

Question:

Why would any level of government take ownership of a public utility, if not to exert some sort of control over the management of that utility?

True enough that the billing system concerns may be unfounded. But that doesn't mean there aren't other reasons to be concerned...

Kari - I mentioned the billing computer in case some other plant investment is required in the future.

You failed to comment on our water rates being so high, the big pipe getting out of control cost-wise, the reservoir cap fiasco and the ability to treble their tax base by getting all of PGE's customers.

I only point to the Water Bureau since it is the utility that CoP runs right now. If you can show me some service they provide cheaper than the private sector, I am open. I still think CoP's motivation is to get one more tax lever to use against people.

"In reality, the City has repeatedly stated that it will continue to pay Oregon taxes, and will pay cities and counties in PGE's service area in-lieu of fees to replace the "lost" tax and franchise payments to those cities and counties."

You neglected to mention any statement on user-taxes they could intiate. If they want to come out and say no/none/any user taxes/fees will ever be added, maybe I can believe them.

Hey! How's the state going to back-fill the $10 in tax that PGE paid, and the City won't pay? Sheesh. Focus on the financials, people! There's a state budget crisis!

Please do read our actual plans. The City has a web page dedicated to this issue.

For over three years, we have pledged no new taxes or fees of any kind.

The goal is to have the City acquire and then set up a regionally based utility that is managed by a qualified board. We have advertised to see what private operators would be interested. After looking at this extensively, I believe that the best model is simply to reconfigure PGE as an operating company and not bring a third party in between PGE and the new public board.

Under this simple approach, you essentially replace Enron with a public board. The advantage of not collecting federal taxes, which are not paid to the feds currently, and better interest rates result in an annual savings of approximately 100 million or ten percent.

That is the beginning. Many good possiblities open up from there. The new utility has access to long-term, tax exempt financing, which PGE does not. That allows more possibility for smart, long-term investments, something the TPG deal lacked completely. PGE remains a headquartered, private company that could actually grow. Let's have some fun here. Maybe they could do billing systems for the public. There's a thought.

We would be open to a state governance structure if it better met the basic needs of the project. That remains to be seen, but we are open. In any case, Oregon should take this chance to inject a huge amount of money into our economy and shape our own future. Electricity is a public-private partnership now. I believe the actual economics of the monopoly could be improved by setting up smart incentives for PGE under this new structure. Lots of good things to think about there as well.

Over 25 mayors and elected officials, including the mayors of Lake Oswego, Gresham, Woodburn, Yamhill and many others, have endorsed this basic approach and are working with us.

It's a good debate, but not all that focused on what I'm actually proposing. Let me know what else I can clarify.

OK, you fail to make a case why a public entity should run it if PGE would stay the same. Instead of injecting public money, why not let PGE go public at no cost to taxpayers?

I am almost afraid to ask, but what would be a smart, long term investment? Maybe another PGE Park? Its hard to see when you fail to make smart short-term investments. What does having some fun (with public money) mean?

The fun was a joke about the billing system, not public money. Take a breath.

The advantage of public purchase is 100 million a year.

"The advantage of public purchase is 100 million a year." Now that's funny and non-factual to boot.

By non-factual, I mean if you look thru the 5 page PDF (vs. the 2300 pgs TPG had to file), there is not a number in there to justify his $100M claim. Heck, why not say $500M and way overestimate it like the rest of the projects they try to shove thru.

Sorry, I forgot sometimes they underestimate like the $20M gondola now pushing $40M.

Mr b!x, sorry Mr Sten has never had any experience running or planning anything of this scale and merely making empty promises does not make it more palatable.

S.U.D. = Sten Utility District

I am hopeful that FERC, or some other regulatory body, will block this juggernaut. Imagine all the new and exciting ways that progressive social change can be implemented via electricity pricing. I shudder at the thought: congestion pricing; luxury consumption tax; mandated wind power subsidies; below cost rates to non-profits and enterprise zones. How to pay for it: we'll charge the industrial users their fair share.

Portland wants an exception from the FBI. Portland wants an exemption from the EPA. Portland has their own foreign policy platform, contrary to a U.S. Constitution that clearly delineates foreign policy as a federal responsibility.

I hope that FERC, DOE, or even a high ranking Senator or two might remember Portland's stance on the JTTF when it's time to consider the City of Portland's bid for PGE. Sometimes the right hand knows what the left hand isn't doing. Payback may be a hitch.

Shall we dissolve the City of Portland? Can we dissolve the City of Portland?

What would be left of any PGE deal? There might be a mess left on the table, but at least there would be no valid bonds that need to be covered by Portland residents. If it is Portland that organizes "revenue" bonds for PGE, then this actually helps to invalidate those bonds in the future . . . believe it or not.

Is there any legal restriction beyond a simple vote of the City of Portland resident's that they wish to dissolve the city? Absolutely none. If this is the case then is there anything whatsoever that remains durable beyond the time that the city is dissolved? If the City itself is the entity that has pledged to commit its cooperation to direct any PGE revenues to cover any PGE purchase bonds then that commitment can go . . . . poof, like a little puff of smoke.

The only club that the bond folks have is to offer a down grade in bond ratings of any new city that overlaps with the old city. There is a like a a five year penalty box for any local government entity that defaults on a bond, for all its other bonds. This basically means that a city would be prohibited from issuing bonds for up to 5 years by the banks and their bond rating allies. But, because I think of all the bond issuance schemers as scoundrels this is not really such a bad thing anyway.

The back door men and women (the schemers) of PGE have a plan. Tom Potter has offered to pay a bonus brokerage fee of 4.5MILLION dollars to the law firm of Greenberg Traurig if they are able block anything that gets in the way of obtaining extraterritorial jurisdiction (I call it an extralegal power grab) by the City of Portland. Their local partners in this crime will be the team of Garvey Schubert Barer.

Don't take my word for it, for gosh sakes. But do go and read Justice Linde try to make sense of the WPPSS debacle.

law.pdxnag.com - 296 Or 550, DeFazio v. WPPSS (1984-03-20) (you will have to hit "Go to Requested Page")

In 1976, the Washington Public Power Supply System and 88 governmental and cooperative entities in six states entered into a set of agreements under which the system [ . . .] [. . .] We hold only that the Oregon cities and PUDs did not exceed the limits of their authority when they signed the Participants' Agreement at that time. [. . .]

Suppose that I draft an initiative petition to dissolve the City of Portland, obtain the signatures and it gets passed by the voters? We could wipe the slate clean of lots of pent up crap, not merely the latest bit of chicanery with PGE that is going to get piled on top to give it a nice clean scent of fresh stench.

Could the citizens of Portland, in their collective self-interest, authorize the payment to me of a 4.5 million dollar reward for dissolving the city in like manner to the Tom Potter 4.5 million dollar contingent reward to the folks that seek to obtain extraterritorial authority for the City of Portland so as to lock us poor slobs into a deal that we have no business entering into.

Hey, TOM, would the reward fee be applicable too if the last remaining obstacle to unlawful bargaining authority were the legal action by me, Ron Ledbury? Would the law firm of Greenberg Traurig properly be the Real Party In Interest in any legal action I might take to halt the city's purchase of PGE because they have a property interest in the benefits of the contract, analogous to an exclusive Buyer-Broker contract in the real estate context?

Would the lure of their reward fee, only for obtaining extraterritorial reach, also apply if the last remaining obstacle were an initiative petition to dissolve the city or perhaps an initiative of lesser scope to merely prohibit the PGE purchase? Is this the real version of Clean Money, 4.5 million dollars worth of Clean Money, to accomplish an unlawful end? Would they be the city's lobbyist? Could they use their influence to get The Oregonian to run a soft-ball editorial rather than hard-ball editorial in opposition to the city's PGE plans?

Imagine if I were your elected city attorney? Elected not by your City Council but by the voting residents? I could be turning over rocks all over the place.