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OUR OPINION
As President of the Board for Pend Oreille PUD, I take seriously my responsibility to communicate with the public about the Board’s decisions. I appreciate the opportunity to respond to questions and concerns about the recent adjustment to the General Manager’s compensation. Public questions are not only welcome, but they’re also very important. That said, several claims circulating in our community are simply inaccurate, and I believe it’s important to provide some context and clarify the facts.
First, the idea that the Board “ignored” or “disregarded” the General Manager’s contract is simply not true. The employment agreement sets an initial salary and outlines an annual performance review process. It also gives the Board the authority to evaluate compensation over the course of the agreement when appropriate. The General Manager is evaluated annually, just like every employee at the PUD. That’s been standard practice for decades. Washington law allows performance evaluations in executive session, and we followed that long-established, lawful process.
I also want to say something about the broader conversation taking place. I encourage people to ask questions and get the facts before sharing accusations or rumors on social media, in local newspapers, or around the county. We see too much misinformation in today’s society, and it doesn’t serve anyone well. Our community deserves thoughtful conversations based on facts, not assumptions. The PUD has always been committed to being transparent about its decisions, and that won’t change.
The Board’s decision was based on the belief that the General Manager’s compensation should better reflect today’s utility industry and the responsibilities of leading an organization as complex as Pend Oreille PUD. The truth is that the General Manager’s salary had gradually fallen out of alignment with similarly sized public utilities in Washington and around the region. When compensation falls too far behind comparable organizations, it becomes much harder to remain competitive for experienced utility leaders. Replacing a General Manager is neither a quick nor inexpensive process, and periods of leadership transition can slow important projects, disrupt long-term planning, and create unnecessary costs. Addressing the issue now was the more responsible long-term approach. This decision was made with the interests of the PUD and the people we serve in mind, not the convenience of any one individual.
We understand that many families in Pend Oreille County are feeling financial pressure. We don’t take that lightly. This adjustment represents a very small fraction of the PUD’s overall budget and has no impact on customer rates. During my nearly 25 years on the Board, we’ve remained committed to responsible financial management, and today our customers continue to enjoy some of the lowest electric rates in our region. That didn’t happen by accident. It’s the result of careful planning, sound financial decisions, and a commitment to doing what’s best for our customers.
Over the years, I’ve seen firsthand that steady leadership helps avoid costly disruptions, complete major projects and keep the PUD on the right track. Those benefits ultimately serve our customers well.
It’s also important to understand how executive compensation affects the rest of the organization.
When the top of the pay scale falls too far behind the market, it creates compression throughout the entire non-union pay structure. Maintaining competitive compensation is essential to attracting and retaining the skilled employees who operate, maintain and support our utility every day. A strong workforce helps keep the PUD safely staffed, protects institutional knowledge, and positions us to provide reliable service to our customers.
The Board has already acknowledged that there are opportunities to strengthen our evaluation process, and we’re committed to doing that. But suggestions that the Board failed in its duty or acted without integrity simply don’t reflect what happened. We followed the same lawful evaluation process we’ve used for years, considered market information and organizational needs, and made a decision consistent with our responsibility to act as responsible stewards of the utility and its ratepayers.
At the end of the day, I believe we all want the same thing: a PUD that is financially responsible, well-managed, dependable, and focused on serving this community for the long term. That’s the responsibility the Board takes seriously with every decision we make, and it will continue to guide us.
Thank you to everyone who takes the time to stay engaged, ask questions, and seek accurate information. Our community deserves nothing less.
