Judge to rule on Donobi in two weeks

Company's restraining order against PUD to continue until ruling March 4

EPHRATA — A Grant County Superior Court Judge won't decide on Donobi's future for another two weeks.

Judge Ken Jorgensen heard arguments from attorneys for both the Bremerton-based service provider and the Grant County Public Utility District Friday, but continued an injunction hearing on the matter until March 4.

Donobi was granted a temporary restraining order Feb. 10, preventing the PUD from disconnecting the company until a court rules. The PUD commission voted last week to disconnect the service provider, but the PUD is prevented from shutting off the company until at least March 4.

During Friday's hearing, PUD attorney Ray Foianini told Jorgensen that the company was in danger of a disconnect from the Zipp network because of a failure on their part to provide the PUD with a deposit.

Under the PUD's customer service policies, the deposit was triggered when Donobi's credit score dropped below a level accepted by PUD policy. Donobi first learned of the deposit request in January, when the PUD sent Donobi a letter requiring payment of more than $211,000, including the company's outstanding balance, including a $96,860.80 deposit. According to PUD policy, the deposit amount is a calculation of 350 percent of the company's average monthly bill over the last 12 months.

"They're asking the court for an extraordinary remedy," Foianini told the court, adding that Donobi owes the utility more than $68,000 in addition to the deposit and the balance on a promissory note.

Donobi sent the PUD a letter of credit in lieu of a deposit, which is also accepted per PUD policy. That letter of credit was rejected by the utility, leading to the PUD commission's vote to disconnect.

Donobi attorney Dwayne Fowles said that the matter "boiled down to" a $96,000 deposit that has been demanded by the PUD.

"Why don't you get a letter of credit from someone they'll accept?" Jorgensen asked Fowles.

Fowles countered, saying that the way the PUD's policy has been drafted, the utility doesn't have to accept any letter of credit from the company.

Foianini told the court that the service provider had been late on its bills more than 45 times since their relationship with the PUD began. He added that the company had missed its due date on four occasions since the PUD implemented its customer service policy in April, 2004.

Foianini admitted that prior to the PUD's policy adoption, that the commission had done a lot of things that were questionable. But he said the uniform customer service policies have been put in place so that every service provider is treated the same.

"The PUD just wants to be assured that they're going to get paid," Foianini said.

Fowles admitted the company had been late four times since the PUD enacted its policy, but said the issue was that the PUD had unilaterally created its policy.

"The policy is a benefit to you," Jorgensen told Fowles, "Prior to the policy they sent you a bill, you didn't pay it, they could cut you off."

"Clearly Donobi has some contractual rights in this relationship," Fowles said, adding that he would not accept that the PUD had a blank check to do whatever it wanted to do in this situation with Donobi.

Fowles also contested that the PUD never modified a due date for the deposit. He said the utility gave Donobi a modified amount due in February, and contested that the due date also should have been changed.

After the hearing, Foianini said that if Donobi pays a deposit or submits a letter of credit by the next hearing, then the issue could be resolved. But Foianini said the company could also file for bankruptcy in that time, leading pre-injunction debts to be uncollectable.

A temporary restraining order issued by the court had been set to expire Feb. 24, but Jorgensen said it would be continued along with the court date.