Electrician Group Issues Warning Association Raises Concerns About Potential For Collusion

The Spokane branch of an electrical contractors association is warning its members about a possible plan to fix prices or reduce competition.

The Inland Empire Chapter of the National Electrical Contractors Association faxed a letter to its area members Wednesday advising them not to participate in a meeting proposed by a non-member contractor to discuss the market and competition.

Any meeting among competitors to discuss the marketplace is a source of concern, said Roger Reed, attorney for NECA’s local chapter.

“The subject matter they wanted to address filled us with trepidation,” Reed said. “We think these subject matters portend possible illegal activity.”

The meeting, which has not yet occurred, was called by Colvico Inc., a contractor located on Waterworks Avenue.

Colvico president Cory Colvin denied that the meeting would be to discuss competition or to fix prices. “You can’t do that,” Colvin said. “It’s illegal.”

However, a voice mail message left at Spokane Electrical Services Co. by Colvico Vice President Mike Kelly last week suggested the meeting was to discuss competition among area contractors.

“We’re a little disgruntled with margins going down in the last couple of years,” Kelly said on the message. “It seems like we’re all killing each other.”

In the message, Kelly said he hoped to contact 15 area contractors.

“We’ve gotten a pretty favorable response from about 10,” he said.

On Friday, Kelly said his message referred to the lack of qualified electricians in the marketplace.

Bruce Morelan, chief executive officer of Spokane Electrical Services, said he was stunned when he heard the message.

“My reaction was amazement,’ he said. “Total amazement. People are pretty careful about this sort of thing, because of the consequences.”

Dave Peterson of Peterson Electric said he had a similar reaction.

“I think it’s really stupid,” Peterson said. “You can’t do that. Basically, I just want to wash my hands of it. I don’t want to get involved with those guys.”

While calling a meeting does not constitute illegal activity, any intent to fix prices would, said Bill Nicholson, an assistant state attorney general in Seattle.

“Any discussion that would have the purpose or fact of stabilizing prices would be an area of key concern,” said Nicholson. “They don’t have to follow through on it.”

Any price-fixing attempt would violate Washington’s antitrust laws and could result in fines of up to $500,000, Nicholson said.

The idea is to protect customers, he said.

“Consumers benefit from open, fair and vigorous competition,” he said. “Collaborations by competitors restricts that competition.”