It's high time to generate solutions Our View: State's leaders need to help, not hinder, new electrical plants.

John Webster - For the editorial board

The Bonneville Power Administration has decided to sacrifice the aluminum smelting industry, to help keep lights on for the residents and businesses of Western Washington where much of BPA's electricity is consumed. This is a radical warning to a state where power generating capacity has not kept pace with the growth in population and job-creating businesses.

Spokane, Wenatchee, Goldendale, Tacoma and Bellingham are only some of the cities where good-paying jobs in aluminum or other big power-using industries are at risk -- for two years, if not longer. BPA doesn't have enough power to go around. Even if power could be found, BPA is refusing to provide it at a price industry can afford to pay.

But that is only the beginning of the story. High electricity prices, plus the continuing risk of blackouts over the next couple of years, could damage many different economic sectors. It's not just about aluminum, or the many smaller employers that exist to serve aluminum makers. Nor is it just about irrigated farming and the companies and communities that supply farmers with seed, chemicals, equipment, fuel, processing and shipping.

Clyde Ballard, Republican co-speaker of the state House of Representatives, worries about recession -- followed by a collapse in state revenues that could undercut all the assumptions now being made by the Legislature's budget writers.

Ballard is only one of many prominent figures in business and politics who consider this a moment for strong, wise leadership -- and who wonder where that leadership is going to come from.

So it is with interest that we print the nearby column from Gov. Gary Locke, expressing his concern and his point of view.

Locke's help, and that of our congressional delegation, is needed.

To be effective, though, policy leaders have to help in a way that actually will achieve the needed result: Creation of additional generating capacity, soon. And, they could insist BPA consider rate structures that would offer aluminum smelters a future.

These days it is private investment, not government and certainly not wishful rhetoric, that creates electrical generating capacity.

Rather than blaming and micromanaging private investors, government has to identify practical steps to get more generating capacity on-line. There are reasons new plants haven't been built. The state shouldn't add to those reasons with rules, delays or limits on investors' returns -- that was California's error. Rather, the state should reduce obstacles and create incentives.

The Legislature contains well-informed energy industry experts, such as Spokane Rep. Larry Crouse, whose farsighted opposition almost single-handedly blocked a California-style electricity deregulation disaster in Washington state.

This year, Crouse is negotiating with the governor and others on legislation to relieve the crisis. Among other things, Crouse aims to reform Washington's unnecessarily hostile permitting process and to create tax credits for new generating plants including some for the aluminum industry. His quiet efforts, which might bear fruit in a legislative package this week, could provide some of the practical assistance needed to boost our state's inadequate electrical supply.

John Webster/For the editorial board

-- Anonymous, April 15, 2001

Answers

I think one of the aluminum plants had closed down, because of the high rate of utilities and sold off their alotment of electricity to others at a very nice profit. It was said, they made more money doing that, then if the plant was open for business.

-- Anonymous, April 15, 2001

Maggie, I think all the smelters in Wash. resold the power.

Kip

-- Anonymous, April 15, 2001

I couldn't remember how many, so I played it safe by saying one. :~) What I didn't ask was, lets just say they get power again and they sold that power, instead of opening up the plant to put people back to work. Would that be considered crying wolf to get the electricity and then shoving the profits in your pockets from reselling it at a huge increase?

-- Anonymous, April 15, 2001

Maggie, BPA has already told them their rates will be something like 15 times higher in October. They are planning on keeping the smelters closed.

Kip

-- Anonymous, April 15, 2001

Thanks Kip, for answering my question. The energy shortage is going to be like dominoes, effecting so many people.

-- Anonymous, April 15, 2001

Maggie, We are beyond screwed in the PNW. I have seen the Columbia and it's flow looks like the Spokane River during it's highest run off. I have lived here all my life except for 31 years in the military and I have never seen the Columbia so low.

Kip

-- Anonymous, April 15, 2001