Firestorm Aid Disputed Audit Claims State Didn’T Collect Feds’ Share

Spokane utility officials said Tuesday they are baffled by new federal claims that the state of Washington did not hold them sufficiently accountable for the 1991 wildfires that hit suburban areas of the county.

An audit done by the U.S. Office of Inspector General says the state Department of Natural Resources should have pursued reimbursement for federal contributions toward fighting flames that consumed 36,000 acres and 114 homes, mainly in the Valley’s Ponderosa neighborhood and in Chattaroy.

Two people died in the fires, which were ignited by trees and debris blown into utility rights of way by winds of more than 60 mph.

DNR sued four utilities for $2.58 million in firefighting costs.

Washington Water Power, Inland Power & Light, Lincoln County Electric Co-op and Pend Oreille County Public Utility District No. 1 in 1993 settled for a total of $365,000.

WWP has been renamed Avista, and Lincoln has merged into Inland.

In 1997, WWP and Inland reached a separate $11.3 million settlement with homeowners and businesses.

The Federal Emergency Management Agency provided a $9.1 million grant to the state for firefighting expenses.

The audit accuses Washington of shortchanging FEMA $1.3 million by failing to seek adequate reimbursement from the four utilities, who accepted no liability in settling the various lawsuits.

The audit, released in January, criticizes DNR for negotiating a settlement with the utilities that covered a portion of its costs but none of the federal government’s share.

The head of DNR’s fire program disagreed with the findings and predicted the state will fight if FEMA decides to ask for a refund.

Auditors said FEMA should have received $250,000 of the $365,000 settlement. In addition, auditors said, DNR should have collected another $1.08 million on behalf of FEMA.

By agreeing to pay a percentage of the state’s share of the disaster costs, the utility companies acknowledged “some liability,” the auditors said.

Randy Acker, a DNR division manager who oversees the agency’s fire program, said he could not comment on specifics because the agency has not taken a position on the audit findings.

Agency officials are waiting for FEMA to decide whether to pursue the audit’s recommendation, he said, adding that he would expect the agency to fight the request if FEMA asks for a refund.

Results of the audit were a surprise to Inland and Avista, where officials said they thought firestorm-related issues had long since been resolved.

“I thought the DNR suit was comprehensive,” said Kris Mikkelson, interim general manager at Inland.

FEMA, she noted, gave Inland about $500,000 to clear rights of way and rebuild power lines.

Avista’s Pat Lynch said officials there understood the payment to DNR was to help bridge the gap between that agency’s expenses and the funds provided by FEMA.

“FEMA was fully informed all through the process of what DNR and WWP were up to and had the opportunity to comment,” he said.

Disputes over disaster assistance are common.

An Associated Press review of more than 100 recent audits found that nationally, the federal government has forced states and local communities to repay $442 million over the past decade.

FEMA demanded the refunds after auditors found recipients were not eligible for the aid, had not completed restoration work as promised or had received duplicate reimbursements from elsewhere.

The Associated Press contributed to this report.