The $37 million that two major energy companies will pay the state to offset the high rates they charged during the 2000-01 energy crisis is going to be spent on everyone in the state, but Snohomish County customers have a good shot of getting a significant chunk of it.
Officials from Snohomish County PUD and the county’s Energy Assistance Program office had hoped they would be directly paid a share of the settlement money because the PUD was one of the utilities hardest hit by the price-gouging.
"Anybody who was a customer of a utility was arguably injured," said Tina Kondo, state Attorney General Christine Gregoire’s antitrust division chief. "It’s not just Snohomish’s customers that were hurt."
Gregoire said Monday that $12 million will go to The Seattle Foundation to be distributed to residential electricity customers next winter.
Businesses will get slightly more than that over 20 years. A committee will decide how to distribute those funds.
When adjusted for inflation the total amount will be $37 million for businesses and residents.
Individual residents won’t be able to apply for a piece of the $12 million, so organizations will apply on their behalf. Any group that wants some of the money — to be paid out next year — will have to file an application with the foundation, which focuses on distributing money through grants. Applications will become available in January and will be due in March.
"The organizations (we select) will likely be the ones that — like the one in Snohomish — have a history of doing this kind of thing," said Claire Bishop, who will lead the effort to divvy up the money for the foundation’s Washington Consumer Energy Fund.
Those who show the money will be well spent will be the ones awarded grants, Bishop said.
The need couldn’t be any more pressing than in Snohomish County, said Bill Beuscher, supervisor of the Snohomish County Energy Assistance Program. His office has been asked for help from the low-income county residents it serves at a record rate since opening in November.
"That’s great news," said Beuscher, who said he wishes some money would be made available this winter because he will run out of money to help those in need without more assistance.
Last winter his organization was issued $1.5 million in federal heating assistance money to help low-income residents with about $375 of aid per family.
That allocation dropped to $1.4 million this winter.
"Last year we ran out in March," Beuscher said. "We continued to receive literally hundreds of inquiries for several months after that."
That doesn’t bode well for this winter, he said, considering the smaller allocation and a 30 percent increase in requests this year, an increase he linked to his office being able to handle more calls because of added staffing and a new phone line.
After opening Nov. 15, he said, "In the first 15 days we gave out a quarter-million dollars. We responded to 2,087 requests for assistance in those 15 days."
Beuscher said the demand for help is linked to the PUD’s rates going up by 50 percent in 2001 because of the energy crunch. Since then, the PUD’s rates have been among the highest in the state and disconnections have occurred at record rates.
Williams Energy announced it would pay the state $15 million in November 2002, and El Paso Energy announced last June it would pay $22 million.
Reporter Lukas Velush:
425-339-3449 or lvelush@heraldnet.com.
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