Power bills topic of Joint Board discussion
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ST. IGNATIUS – Members of the Flathead Joint Board of Control expressed concern about power rates for all users during the regular board meeting on Tuesday, Feb. 9.
Prior to 1985, the Federal Energy Regulatory Commission issued a license for the then Kerr Dam that allotted a low-cost block of power for the Flathead Indian Irrigation Project and for general consumer use.
After the dam transferred to the Confederated Salish Kootenai Tribes last year and was renamed the Seliš Ksanka Qĺispe Dam, the licensing left open the question of whether the tribe is required to continue to provide the low-block cost of power.
The CSKT-Montana Water Compact states that the tribe agrees to make the low-block cost of power available in the same manner and at the same rates as were contained in the prior license, although the Water Compact hasn’t yet made its way through congress after passing at the state level.
The low-block cost of power was not included in the license issued in 1985, which is the most recent license, but it was provided. If it’s not included in the license currently being negotiated and the compact fails, then there won’t be a document requiring the tribe to continue providing low cost power.
Some members of the FJBC oppose the Water Compact, and they are counting on trying to get the low-block cost of power included in the FERC licensing agreement to ensure low power rates. Members that approve the Water Compact also want to see the low-block cost of power included in the license.
Closed negotiations recently began to determine the licensing agreement. Officials with CSKT, FERC, and the FJBC attended the negotiations.
FJBC Chairman Boone Cole reported that he wasn’t permitted to disclose the contents of the closed meetings, but he could say that the first part of the negotiation process was at an impasse. He added that the next phase includes a hearing. He also stated that it could take years to finish the negotiations.
Cole said he was pursuing the originally allotted amount of power designated to the irrigation project when the original license was issued.
The board also discussed legal fees from the Jocko and Mission Districts when they split from the joint board in 2013. A legal bill was left for $94,738.92. The entire board then dissolved, and soon after, it was reorganized, but the bill still exists.
The current board disputed the charges and offered to pay $25,000. The offer was rejected. The board is considering a counteroffer. It was noted that arbitration would cost thousands more in legal fees. The board decided to table the issue until time was available for further discussion.
Concerning current legal representation, which is not related to that past bill, the board decided to continue to retain legal services through Rocky Mountain Law for $15,000 a month.
Chairman Cole noted that it could cost the board up to $200,000 in legal fees to pursue the low-block cost of power. The board also retains a law firm in Washington, D.C. for $10,000 a month.
Cole said the legal fees were needed to help pursue the low-block cost of power, general counsel during board meetings and any other legal matters.
Board members voted to approve the 2016 budget at $491,252 for the year. It was noted that the budget was going to be tight this year. If it becomes necessary, several board members offered to waive the $100 stipend they receive for each meeting.
Legal representative Kristin Omvig reported on recent litigation issues. The board is arguing that a two-thirds vote was needed to pass the Water Compact at the state level. CSKT filed a motion to intervene in the litigation, and District Court Judge James Manley granted the tribe's motion.
FJBC regular board meetings are scheduled for the second Tuesday of each month at 1 p.m.
