Download the full Policy Brief

In March 2013, officials at Jefferson County Public Utilities District (JPUD) flipped the switch and became the electric utility for people in their district, taking over from Puget Sound Energy. Authorized by voters in 2008, it was hoped that moving from a private utility to a public board would yield lower rates, improved service and better treatment of customers, especially for those with low-incomes.

Despite glowing promises, Jefferson County ratepayers now pay more to JPUD than they would have if they had stayed with Puget Sound Energy.

Additionally, there have been billing difficulties and a cut of about $400,000 a year available to help low-income families pay their electric bills.

How did the transition to a public utility go so wrong? In 2008, Washington Policy Center published an analysis of the proposal to move Jefferson County, and others, from Puget Sound Energy to a public utility district (PUD). At the time we highlighted the rosy projections of public power advocates and the challenges of taking over from PSE. A look at the failures of JPUD provides a strong warning to others who want to replace a regulated private utility with a public utility monopoly.

Key findings

1. In 2008, Jefferson County voters agreed to let the local public utility, Jefferson Public Utility District (JPUD), buy Puget Sound Energy’s electrical infrastructure and become the electric utility for the district.
    
2. JPUD boosters promised rates would remain low and could actually be reduced. Public power advocates also argued JPUD ownership would result in better service that is more responsive to the community.
    
3. More than three years after Jefferson Public Utility District took over, however, customers are paying more than they would have if they had remained with Puget Sound Energy.
    
4. JPUD has also had billing problems, including virtually eliminating a charity program for low-income electrical customers, cutting assistance from $464,000 annually to an average of $41,800 since the utility became public.
    
5. According to JPUD’s own survey, customer satisfaction is the lowest ever recorded by the firm conducing the survey.
    
6. The State Auditor found significant problems with the utility’s financial management, leading to several “findings,” the highest level of audit citation.
    
7. Rather than being more responsive to customers, the JPUD board has responded to political incentives to minimize problems and blame others for its failures.
    
8. The public utility has not lived up to the promises it made when it took over from PSE, actually increasing rates and providing a lower-level of customer service.

 Download the full Policy Brief