Why Should Bainbridge Switch to Public Power? 1 F o u r R e a s o n - PowerPoint PPT Presentation

Why Should Bainbridge Switch to Public Power? 1 F o u r R e a s o n s W h y Randal W. Samstag, PE

Why Should Bainbridge Switch to Public Power? We have an opportunity to: Get 97 percent fossil fuel free power 1) 2) With better reliability than we are getting now 3) At competitive rates. 4) We can do this. 2

Reason 1: We can get nearly carbon free power. 3 Bonneville Power Administrtion PSE's Fuel Mix is 59 percent fossil Fuel Mix is 97 percent fossil fuel fuel based. free. Wind: 2.7% Coal: 1.7% Nuclear: 1.1% Nuclear: 9.6% Nat Gas: .8% Coal: 35.0% Hydro: 36.3% Hydro: Cogen: 4.2% 87.7% Nat Gas: 19.9%

PSE / Macquarie is a massive polluter. 4 Source: www.commerce.wa.gov/wp-content/uploads/2016/09/Energy-FMD-2014-final.pdf

We must stop burning fossil fuels. 5

Reason 2: Public power has a better record on reliability. Comparison of PSE Kitsap / Bainbridge Outage Data to Some Public Power Utilies 800 686 Annual Outage 628 700 (Minutes) 600 500 400 300 200 126 89 100 39 0 PSE Kitsap (5- Bainbridge (2010 - Snohomish PUD Pen Light (2010- Port Angeles Light Year Average 2014 Average) (Five-year average 2014 Average (2010 -2013 SAIDI) SAIDI) SAIDI) SAIDI) 6 Source: PSE WUTC 2014 Reliability Report, Web and Personal Communications with Pubic Utilities.

Reason 3: We can get public power at competitive rates. 7 Source: Individual utility web sites

Reason 4: We can do this. 8

The D Hittle Report is available in draft form. 9  Main conclusions:  Distribution network less than $20 million tax assessed value  $23.7 net book value  Assumed premium over book value: 35% to 100% plus $12 million in initial costs  Savings of $13 to $23 million over the first 10 years depending on purchase price http://www.bainbridgewa.gov/DocumentCenter/View/7983

The Municipalization task force has had a number of questions. 10  Questions:  Cost for operations center and “pole yard”?  Costs for reliability improvements?  What is “fair market value?”  Why such a high premium assumed when UTC allowed PSE / Macquarie to keep only 16 percent premium over book value in JCPUD sale?

Comments from the Municipalization Task Force 11 L e t u s h e a r f r o m y o u !

Your questions? 12 T h a n k y o u ! R a n d a l S a m s t a g , P E r s a m s t a g @ r s a m s t a g . c o m