District remains without seat on board of telecom company

EPHRATA — The Grant County Public Utility District's commissioners have changed their minds about withdrawing the district's membership from the Wenatchee-based telecommunications company Northwest Open Access Network, or NoaNet.

The PUD provided notification to NoaNet in October of its intention to withdraw membership.

The PUD owns 14.7 percent of the organization which it planned to abandon. The PUD's ownership interest in the telecommunications company was worth $2.7 million that would have been paid as debt after withdrawing.

NoaNet provides wholesale data transport to various agencies and customers and is a nonprofit company made up of a collection of public utilities in Washington state. NoaNet uses fiber optic cables from the Bonneville Power Administration to provide data transport and the PUD currently buys upstream service from the company.

On Monday, the commissioners approved a motion to provide written notice to NoaNet that the PUD was rescinding its October letter expressing its desire to withdraw membership.

In October, the PUD commissioners saw NoaNet as a financial risk, and wanted to avoid exposure to a $5 million line of credit the company had available. The commissioners expressed concern that NoaNet's business plan was inadequate. The commissioners also wanted one of NoaNet's board member positions, because of the PUD's large ownership interest.

Recently, other member public utility districts made capital contributions to NoaNet, which helped the company meet its financial needs to a certain extent, PUD officials said Monday. PUD officials said they now see the potential for new NoaNet customers as real, and the possibility the company would draw on its line of credit as lower.

The PUD still would not have a board member position.

"If they don't put us back on the board then we'll have to look at possibly withdrawing again," PUD Commission President Bill Bjork said.

The PUD changed its NoaNet representative Monday, nominating Treasurer-Controller Nick Gerde to the position. Gerde would now have to be elected to one of the NoaNet board member positions.