Puget Sound Energy alleged that supporters of a Whidbey-based utility district broke state law by accepting money from a public agency.

PSE filed a complaint against the Washington Public Utilities District Association for funding a campaign to take over PSE’s territory on the island, spearheaded by the group “People for Yes on Whidbey PUD.”

David Metheny, the founder and campaign manager for “People for Yes,” has been a paid employee of the WPUDA since June.

The Sept. 12 complaint was filed with the Public Disclosure Commission and claimed the WPUDA is the “equivalent of a public agency and is therefore subject to the Public Disclosure Act.” PSE lawyers said the organization is a public agency because it serves a public purpose, is publicly funded and is run by government officials.

“Government agencies are restricted from using public funding for or against ballot measures,” Lori Anderson, spokesperson for the Public Disclosure Commission said.

The commission will begin investigating PSE’s claim next week.

Using evidence based in part on coverage from the Whidbey News-Times, PSE alleged Metheny’s paid status violated state law.

However, Dean Boyer, spokesperson for WPUDA, said the complaint is groundless because it’s a private company.

“We are a nonprofit and we pay property taxes. This is more of PSE’s misinformation to muddy the issue of a PUD,” he said.

The association’s Web site states that WPUDA officers, including the president, are publicly-elected PUD commissioners. The Olympia-based organization represents 27 locally-owned utilities across the state.

Boyer said that although their membership includes public officials, the organization overall is not a public agency; they registered as a trade group with the IRS.

The complaint also alleged that public money was spent on political advertising, for slanted articles in the company’s newsletter and for the group’s Web site.

Reports from the Public Disclosure Commission revealed WPUDA donated about $3,000 for the proponents’ yard signs.

“We have filled out all the proper forms for the disclosure commission,” Boyer said, charging that PSE was “secretive about their fake, grassroots campaign.”

Both “People for Yes” and the new anti-PUD group “Whidbey Consumers for Affordable Energy” are under scrutiny for being financed by off-island sources.

“Whidbey Consumers” received $50,000 from Bellevue-based PSE, Sept. 10. The group is being led by a Seattle political strategy firm hired by PSE, Strategies 360, but no local members have been named.

“We’ve hired a campaign manager, we’re obeying the law and we are being open with our filing. It’s important for both sides to publicly disclose,” Gretchen Aliabadi, spokesperson for PSE, said.

“We are not interested in the government taking over our customers,” she added, explaining PSE’s campaign.

The Public Disclosure Commission will follow a list of criteria to determine if WPUDA is classified as a state agency.

“State agencies have their own internal mailing systems, state retirement plans, reduced phone rates. We’ll check if WPUDA can opt in to use these,” Anderson said.

If the investigation yields suspicion, the commission will hold a hearing and could impose a fine as high as $42,000.

“We expect this will be dismissed,” Metheny said.

He described the complaint as a legal tactic by PSE to inject uncertainty and take the focus off the issues.

“They are trying everything to shut us down,” Metheny said. “At a recent debate in Clinton, PSE seemed stunned when the community began to turn on them when it came to issues like reliability. They could be acting out of desperation.”