First Pacific Northwest tribal utility begins its operation

CANYONVILLE (AP) - The massive electric sign that rises above Interstate 5 to invite travelers to the Seven Feathers Hotel and Casino is now drawing its power from the first tribal electric utility in the Pacific Northwest.

The Cow Creek Band of Umpqua Tribe also keeps the video poker machines humming, the hotel lights burning and the restaurant cooking with about 2.5 megawatts of electricity from the Bonneville Power Administration - also enough for about 2,500 homes.

"There have been a few tribes nationwide that have entered into utility operations, but none like this one," said Ron Doan, general manager of the Umpqua Indian Utility Cooperative.

Other utilities affiliated with Northwest Indians actually are owned by the U.S. Bureau of Indian Affairs or others, according to the BPA.

Doan said the tribe has no plans for its utility to produce any of its own power, although it may be considered if power rates climb for the long term.

But the cost of power was not the driving force behind an independent, tribal-owned utility, said tribal chairwoman Sue Shaffer.

"The more we can depend on ourselves, the better off we are, just like any individuals," she said.

Doan, who worked for Pacific Power for 32 years, helped launch the tribal utility, which has contracted Douglas Electric Cooperative to perform operations and maintenance work when needed.

The tribe became interested in setting up its own utility three years ago, when the BPA administrator defined tribes as public bodies eligible to buy electricity directly from the federal agency.

The Cow Creek tribe was among the first to sign up as preference customers, meaning they are given the same rates and priority as any publicly owned utility, said Sonya Tetnowski, the BPA account executive who deals with the Umpqua Indian Utility Cooperative.

The tribal power contract with the BPA, which began last month, can be renegotiated after five to 10 years. The final hurdle in launching the tribal cooperative was convincing Pacific Power, which previously provided power to the Seven Feathers facilities, to turn over its underground power lines and other distribution equipment on the property.

The tribe ended up using its power of condemnation, similar to those given any other local government, to force Pacific Power to sell its equipment and lines.

Pacific Power generally is not interested in turning over parts of its territory to other utilities or selling its systems, but company officials did not want to fight with the tribe, said Shannon Shoul, spokeswoman for PacifiCorp.

"The reason we went into speaking with the tribe about an agreement ... is we understand and respect the tribes right to sovereignty, and conversely they understand our responsibility to our customers and shareholders," Shoul said.

Shaffer said the new utility is just part of a tribal push to diversify its business interests. In addition to the Seven Feathers hotel, casino and travel center, the Tribes properties and businesses include two Canyonville motels, the K Bar Ranch near Round Prairie, Umpqua Indian Foods and a majority interest in Rio Communications, which owns Rosenet and provides other telecommunications services.

"Were really in a strong development stage," Shaffer said. "We want to branch out and diversify in jobs, not only for ourselves, but for others. That's really a big mission of the tribe."