Biomass Debate Raises Questions Over TC Utility Governance

<p><em><a href="mailto:allenre@interlochen.org">By Bob Allen</a></em></p> <p>Political fallout from the debate over biomass energy in Traverse City is focusing on whether the city's utility has too much power to make decisions on big projects.</p> <p>The Light and Power Board voted to pursue burning wood to generate electricity. It has five appointed members, plus two City Commissioners who are elected. The board has autonomy to pursue large projects, up to the point of letting bonds to finance them. Then the City Commission gets to vote.</p> <p>One of the commissioners who also sits on the Light and Power Board, Jim Carruthers, says he favors the biomass project. In fact he says he instigated it. But he told fellow board members he's received tremendous public pressure to vote against it, including threats of not being re-elected. He pleaded with them Tuesday night to delay the vote, in order to mollify vocal opponents.</p> <p>"I am backpedaling a little bit here but I need to listen to these people," Carruthers said. "We appoint you all and we get elected. So we have more at stake here if we really want to push things forward with the citizens. </p> <p>"We have to listen to the citizens, you all don't."  </p> <p>Only the other elected city official on the Board agreed with Carruthers.</p> <p>Board Chair Linda Johnson responded:</p> <p>"You know, Jim, that's one of the reasons the Charter was established the way it was so that this appointed Board doesn't have to worry about being re-elected," she said. "There's a time span of five years for that appointment exactly for that reason." </p> <p>A couple of people who spoke during public comment said maybe it would be better to sell the city's utility, and avoid this kind of controversy.</p> <p>Ross Richardson said that suggestion also came up a couple of years ago when he chaired a specially appointed committee that looked into all city finances.</p> <p>"But in the end we decided Light and Power should stay as part of Traverse City," he said. "And the best reason we could think that it be owned by the citizens of Traverse City is because the citizens could help control the decisions Light and Power made."</p> <p>Richardson thinks Light and Power officials have not done a good job of listening to the public in this biomass debate.</p> <p>A couple of City Commissioners also have publicly expressed dissatisfaction and frustration that the Commission doesn't have more authority over Light and Power decisions. Commissioner Ralph Soffredine also sits on the Light and Power Board, and he was in favor of taking more time to answer concerns raised by the public. But he didn't think so highly of the idea taking over or getting rid of the utility.</p> <p>"The idea of selling Light and Power was ridiculous," he said. "Every year Light and Power pays about 3 mills, One million five hundred thousand dollars that save us from having to pay that tax." </p> <p>And Light and Power Board chair Linda Johnson warned that people who want to give up or dissolve their publicly owned utility ought to be careful what they wish for.</p> <p>"If we were investor owned instead of a municipal we would never be having these conversations. People would just forge ahead and do what they want to and they have in this state," she said.</p> <p>Some critics of Light and Power's biomass decision think the Board went through the motions of listening to public concerns and did exactly wanted to do all along.</p> <p>More IPR coverage: <a href="http://ipr.interlochen.org/program/talking-biomass" target="_self">Talking Biomass.</a></p>