History of EPUD
In October 1970, a small group of citizens assembled at the Elmira
Grange Hall. They met to discuss means for relief from ever-increasing
utility rates charged by the investor-owned utility, Pacific Power and
Light - rates that were approximately twice that of surrounding
ratepayers in Lane County who were served by publicly-owned utilities.
The question of forming a People's Utility District was raised. Five
months later, a group of 50 people met in Harris Hall to hear a
representative from the State Engineer's Office outline the
requirements for forming a P.U.D. A steering committee, consisting of
people from Cottage Grove, Noti, Junction City, Goshen and Pleasant
Hill was formed. The journey had begun.
Much work lay ahead.
The State Grange and its local
chapters throughout rural Oregon strongly supported the cause. The
committee took information about the cause wherever an audience could
be found. Attorneys gave legal counsel without remuneration. The most
immediate problem facing the committee was forming boundary
descriptions of the area to be served. Stephen Ford and Associates,
Surveyor-Engineers, was retained for that purpose. Because the process
of describing legal boundaries in legal language was extremely
time-consuming and very expensive, there were continuous drives for
money and for workers. Fundraising events (and opportunities for
disseminating information) included concerts, films, auctions, garage
sales and newspaper recycling. Individuals and businesses that would be
served by the proposed P.U.D. made donations.
In 1973, the
State Engineers Office approved boundary descriptions. Hearings were
scheduled throughout the District. Upon completion of the hearings, the
State Engineer's Office was obliged to file a public report referred to
as a "Recommendation of Feasibility." In fact, the report only noted
that the decision about forming a P.U.D. would be made by the voters.
It was a "non-decision."
Was power available?
In 1974, the committee circulated petitions to put the question on the
ballot. The major issue involved was the availability of power for a
Public Utility District. Because Bonneville Power Administration would
not guarantee a steady supply of power for a "new" customer, the voters
soundly defeated the measure by almost a two-to-one majority.
Subsequently, in 1975, Fourth District Representative Jim Weaver and
the EPUD committee brought suit against the BPA to halt its
discrimination against new electric cooperatives and public utility
districts; and to stop preferential selling of power at lower rates on
long-term contracts to aluminum companies and other heavy users of
electricity.
The agony of defeat was short-lived for the P.U.D. crusaders. A more
politically astute committee went back the drawing board, determined to
get the proposal passed by District voters at the next possible
election in 1976. After all, Pacific Power had spent in excess of
$100,000 to defeat the measure, compared to about $1,500 spent by the
P.U.D. supporters. There was definitely hope.
Public power declared feasible.
After investigations and public hearings, the head of the Oregon
Department of Energy officially concluded in 1976 that the BPA would be
able to provide power at a substantially lower price to P.U.D.s. An
attempt to get a formation election on the ballot in 1976 was aborted
due to a technical and logistical problem with Oregon election law.
Emerald P.U.D. finally approved.
In 1978, when the scarcity of energy, as well as its costs and
controls, had generated much public and media interest, the voters
approved the formation of the Emerald People's Utility District. In the
spring of 1979, voters approved $150,000 for engineering studies and
legal expenses in a levy election. In 1981, voters within the Emerald
District approved authorization of $72.5 million in revenue bonds.
After the Oregon Supreme Court in 1982 sustained the legality of the
bond election, the stage was set. Emerald was ready to begin the
negotiation process to acquire Pacific's distribution system in Lane
County. Over a three-year period, Emerald had been in litigation with
PP&L on 14 separate occasions!
In late 1982, Emerald sold $23.5 million in revenue bonds. The
investment of these funds provided money for starting up and employing
the first General Manager and other personnel. Monies were also set
aside for the acquiring a fleet of utility trucks and purchasing and
leasing office equipment and accounting systems. On July 27, 1983,
after six months of active negotiations and twelve and a half years of
effort, PP&L finally agreed to sell its facilities to Emerald for
$25.5 million.
$36 million in revenue bonds were offered in the securities market. The
funds provided money to pay PP&L, retire the earlier $23.5 million
debt, and launch Emerald as a fully operational electric utility.
"Switchover" occurred November 17, 1983, with a solemn ceremony
followed by a splendid one. Long-time supporters were there, along with
new employees, media and scores of well-wishers. The new P.U.D. was
born out of an ongoing commitment to putting people first. The success
of Emerald P.U.D. was, and is, based on people - the consumers-owners
past, present, and future, for whom we exist.