Labor council, building trades group endorse Markgraf for PUD position

Even though they oppose the creation of a people’s utility district (PUD) in Multnomah County, the Northwest Oregon Labor Council (NOLC) and Columbia-Pacific Building Trades Council have endorsed a candidate running to become one of five directors of that PUD — if voters formally approve its formation at the Nov. 4 election.

The labor groups’ endorsed candidate is Tom Markgraf, senior policy adviser and labor liaison to Congressman Earl Blumenauer. Markgraf was endorsed because he, too, opposes the formation of a PUD in Multnomah County.

“I’m not opposed to PUDs in general, but this proposal was not thought out completely. It is purely a reaction to the crooks at Enron,” Markgraf said. “It doesn’t solve our energy problems. In fact, it could make them worse.”

Enron purchased Portland-based PGE in 1997 and filed for bankruptcy in late 2001 following a spectacular collapse that involved price manipulation of electricity and gas, power trading scandals and bogus accounting. As Enron spiraled downward, rank-and-file employees were locked out of their 401(k) retirement plans. They eventually lost most of the money in those plans while top executives traded their stock for cash as the price started falling.

Supporters of the Multnomah County PUD believe that bankrupt Enron will eventually sell PGE in pieces to collect the most money possible.

Opponents say that creating a PUD would require breaking off portions of the utility — and possibly portions of Pacific Power & Light — at a cost of billions of dollars.

Ballots were mailed Oct. 17 and are due back by 8 p.m. Nov. 4.

Voters actually will be asked to consider three questions:

1) Measure 26-51 asks voters to create a PUD that would include the entire geographic area of Multnomah County except: Interlachen People’s Utility District; Rockwood Water People’s Utility District; an area to the east of the county that is provided utility service by the City of Cascade Locks; and a portion of the City of Milwaukie that extends into Multnomah County on the southern border.

2) Measure 26-52 asks voters to impose a one-time special levy to raise about $127,000 to pay for an engineering report to decide which assets to buy from PGE and how much to pay for them. The levy would come in the form of a property tax increase of 0.003 cents per $1,000 assessed value in 2004. (County officials estimate the cost would be about 45 cents for a house with an assessed value of $150,000.) Measure 26-52 must have at least a 50 percent voter turnout to pass.

3) Voters will be asked to elect a 5-person, non-partisan, non-paid board of directors. The candidates are: Markgraf; Dave Covington, a lineman for PGE and a member of Electrical Workers Local 125 (Local 125 is actually leading the effort opposing the PUD, but Covington supports its creation); perennial candidates Ron McCarty and John Sweeney, and Scott Forrester, all are former union members who are now self-employed; Dave Mazza, editor of the Portland Alliance newspaper; Jim Robinson, administrator of the Soil & Water Conservation District; Netta Mae Rymal, a retired school teacher; Fillard Rhyne, a math tutor; Myles Twete, an unemployed engineer; Nancy Newell, a consultant with the Oregon Wildlife Federation; Xander Patterson, executive director of the Oregon Physicians for Social Responsibility.

Markgraf hadn’t even considered running for a director’s post until after engaging in a debate with a candidate at NOLC’s Labor Day picnic. After the exchange, the candidate challenged him to enter the campaign. But it wasn’t until Markgraf saw the list of 11 candidates who had filed to run — 20 minutes before the filing deadline — that he actually threw his hat in the race.

Markgraf, 43, is campaigning to defeat Measure 26-51 and 26-52, which he says his boss (Blumenauer) also opposes.

“This isn’t like buying a coffee cart. You need experienced people to manage an electric utility,” Markgraf said. “Pacific Power and PGE operate two entirely different systems that can’t be merged without raising enormous costs and jeopardizing reliability. If we lose reliability and our rates go up, our community and workforce are in trouble. Can anyone promise an untried PUD won’t bungle the system, resulting in a blackout like the one in the East? We don’t know. There’s no track record.”

“Business and labor interests both oppose this measure. When labor and business are on the same side of a cause, we should take notice,” said Markgraf, a native Oregonian who lives in North Portland with his wife and four children.

But creating the PUD does have its supporters, including several union locals — Postal Workers, Letter Carriers Branch 82, Service Employees Local 140, and Carpenters Locals 247 and 1065 — as well as the Multnomah County Democratic Party and the Portland Chapter of Jobs With Justice.

© Oregon Labor Press Publishing Co. Inc.