News Release - March 18, 2008
Mick Shutt, 360-992-3238
Utility repair service to close
March 18, 2008
After a lengthy discussion today, the Clark Public Utilities Board of Commissioners voted to close the utility’s Appliance Repair Service after more than 50 years of operation.
Once a popular service with customers, the service has suffered financially in recent years, as fewer customers have used the service. Projections for the future didn’t look good either, according to Commissioner Carol Curtis, who along with Commissioner Nancy Barnes concluded that the operation is no longer financially viable and voted to end it. Commissioner Byron Hanke opposed the closure.
Several years ago, the Washington Legislature passed a law allowing the utility to continue offering the repair service and Guaranteed Hot Water. One of the key elements of the legislation was that the services could not be subsidized by other electric or water customers. With the current financial condition of the repair service, the utility is legally prohibited from continuing the operation.
Commissioners considered three options. One option was to end the program now. Another option was to increase rates for service, which are pretty comparable to many of the local contractors. Another option was to reduce expenses, but because the largest single cost is for labor, this approach would have required a pay cut for the employees. A combination of the last two was also an alternative. In the end, commissioners decided these options wouldn’t solve the financial problems and voted to end the service March 31.
In recent years, the utility has taken many steps to address these financial issues. Rates for service and parts have increased, technicians have been assigned to other duties outside of Appliance Repair during slow times to reduce expenses, and operating processes have been streamlined to improve efficiency.
While these steps have reduced some costs and increased revenues, the fact remains that Appliance Repair continued losing money.
The utility will continue to schedule requests for service calls through March 24. After that date, no new requests for service will be accepted.
Guaranteed Hot Water coverage, which is part of the Appliance Repair Service, will continue through the end of March. The last repair work will be done on March 31.
The Appliance Repair technicians are all members of Local 125 of the International Brotherhood of Electrical Workers, and based on seniority and qualifications may be able to move to other jobs. The unfortunate result though, is that several utility employees will face layoffs.
We appreciate the support and loyalty of our customers over the years and wish we could continue to offer Appliance Repair Service. Unfortunately, we’ve been unable to operate at a break-even level.
And under state law it would be illegal to continue for the utility to continue operating the service.
Clark Public Utilities is a customer-owned public utility district that provides electric service to more than 180,000 customers throughout Clark County. The utility also provides water service to nearly 30,000 homes and businesses in the Hazel Dell, Salmon Creek, Lakeshore, Hockinson, Brush Prairie, La Center, Meadow Glade, Amboy and Yacolt areas.