A Klamath Falls study on developing an electrical utility district is facing strong resistance from Pacific Power…as a 40 thousand dollar feasibility study nears completion.
Mayor Todd Kellstrom thinks the idea could save people in Klamath Falls a lot of money…
“Certainly a good example is Hermiston. They went through this process, and came out on the other side – and they’re saving about 25% on their electricity.”
But PacifiCorps’s Bob Gravely says Pacific Power was a willing seller in Hermiston – but not in Klamath Falls…
“It’s not going to happen in this case. This would be a much more drawn out, through the courts, and contested, expensive, divisive battle.”
There’s more contention over the cost of the system. The city says Pacific Power’s infrastructure is worth about 12 million. But Mayor Kellstrom says the power company claims it’s worth much more…
“They’ve said hundreds of millions. They haven’t really put a point on it, and I don’t think they want to.”
The mayor says that cheaper electrical rates could lure new business to town.
Gravely argues that the long battle ahead will only make the city look bad to business…
“Because it would be a long, expensive fight to condemn a private business. It does not send a good message to other businesses that are here, or considering coming here.”
The power company doesn’t want to see a trend of municipal utility districts spreading through the state…and they won’t go down without a fight in Klamath Falls.
There’s no deadline for the city to make a decision.
Once the draft study is reviewed by council, they could opt for a more detailed study…or, abandon the idea altogether.
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